HOUSE PRICE CRASH

[marktopp]

I am always confused when people go on about how tough it is for the young to buy a home. Its NEVER been easy, property has always been expensive. The main difference today is that everybody wants EVERYTHING not just the house, but every mod con, 3 holidays a years and to be out on the town everynight. I bought my first house 25 years ago, I had to work two jobs and slept on folded sleeping bags for 18 months until I could afford a bed. Bigger debt today yes, but no harder - FACT

[andyparf]

@marktopp everyone is told what they should need in life and they grow up believing what they have been told is true, none of this is real, the money is not real,, the economy is not real none of it, but its easyer to convince a slave hes not a slave if you give him the illusion of choice there is no housing ladder it is a pyramid selling scheme keeping the rich at the top and people with vested interestes trying to make money out of it,

the majority sell thier soul, for some bricks+mortar

[walter0bz]

one symptom of Peak Oil.

when food shortages start, "demand destruction" for houses will ensue.

[alphaeconomics]

UM!!!!!!!!!!!!!!!!!!!!!!!!!!!!­!

[bubb95]

Just a shame brown didn't have the balls to let the market correct itself properly.

[damnright4]

Price Correction!! the sooner the better.

[MRMILO57]

Would like to mention in Australia, we are the most expencive country to buy everyday items, grociers, petrol/gas, utilities etc....

The media Australian house price is 70% over priced and rising very fast, to buy a house in any city in Australia, you need min...$400,000 dollars.

40% of Australian homes is mortgaged, most are beyond what they can afford.

I'm pissed off and worried

Just letting you people know!

[r2fteachpe]

I love it... i have been winging about high house prices for eight years to be told exactly what the speach bubbles say. Well now Ha ha ha the PRUDENT are being proved right.

[ralhrfi]

My seven year old son correctly answered the question "what comes next?". He explained "mountains can't go across like that". Just goes to show how incompetent banks are.

[bagariddum]

real prices belong in the 3x avg salary bracket. for the uk thats another 50% drop required. in Oz it means another 60% drop. as this will be catastrophic for the banks (people just won't pay ) govt will prop up this fall for long enough for it to meet wages coming up. thus levelling the drop over time, stagnating prices for 10 years. good for some (those hoping to sell investment properties for retirement) but for those that want to buy their first (not gambling) house in that time...tough.

[bagariddum]

dunno what the 'credit crunch' is supposed to be about, here in Oz i filled out a few 'how much can we lend you' mortgage calculators on banking websites. ALL of them quoted me a loan of between 8 and 9.5 times my salary!!

and yet small-med biz in the Uk can't get lines of credit? sounds a bit like this depression is being induced and Oz is a bit behind, still trying to screw the last few saps into colossal debt before they baton down the hatches.

[subprimeminister]

bagariddum, good on ya! Here we have "Wanted Down Under", a sickening BBC show where idiot Brits think about moving down under. No matter what their occupation they all seem to be able to earn £20k in Oz. And the TWAT presenter shows them houses costing £300k+. They all state that they want to be mortgage free, but they ALWAYS show them properties that would require a HUGE mortgage relative to their Oz salary. The BBC should be in JAIL for their part in this bubble. IN JAIL, WITH THE BANKS

[duffduffbeerbeer]

i am a first time buyer with atleast a 10% deposit in the bank.... i am laughing at all you idiots in financial trouble... roll on another 15% fall in house prices in 2009 then put in a offer.... oh yeahhhhhhhhhh

[moniequa]

What was that again? The house will fall additional 15%? Try alot more than that at the end of 2009. With high unemployment and hyperinflation, your home will devalue to nothing.  So go ahead and buy 2 homes.

[subprimeminister]

duffduffbeerbeer, you're right to hold fire, but it's actually people your age who are in the most financial trouble because you have over-paid and propped up the bubble. People who paid £100k 8 or 9 years ago would still be selling to the likes of you for £200k even AFTER the price has fallen 25% since 2006 levels. Wait until the price is 3.5 times your salary. THAT is the right price. Alternatively, 80 times it's monthly rent. If it could get £1k/month rent, the house is worth £80k...

[marky1333]

There have been 5 depressions in the last 400 years the quickest return to house price values(pre crash) has been 36 years.

here are the time scales for house prices to return to pre depression peaks after each depression 36,36,38,54,and 90 years.

UK house prices will not return to 2007 highs until 2043 at the earliest (my guess will be more like 2055)

[moniequa]

And you are on the money, Marky1333, but don't try to tell that first home buyers they won't believe you because they got to have a home right now. It took Japan over 12 years to recover and they are not even at where they were. Dumb buyers are to blame for this housing bubble without their poor pathetic stupid asses the banks would have anyone to lend the money to. Like my father used to say, the top use the poor to suck the blood out of you.

[bagariddum]

good, all this nonsense about handing over half your wage (+) for 25 years to a bloody bank is a sick joke played by the lazy good for nothing land owners that have never done any real work and who only have the land due the thieving/murdering tendencies of their ancestral gene pool...inbred, pig ugly, buck toothed, parasites with largely franco/germanic heritage. time for a cull i think.

[RobotPiston]

Boo house price crash bad thing...

[JYTILLIER]

Are those curves based only on the current houses up for sale or all the houses in the country?

If only the old dirty houses remains, isn't this curve going to decrease?

If the builder only built affordable houses during 3-4 years and no large expensive houses, isn't this curve going to decrease?

[brunopowroznikagain]

Bruno Powroznik is back as brunopowroznikagain

[LODGE4444]

Houses are still overpriced - To determine what a house should really cost, add 30 percent to the price it was 10 years ago.

[didacts68]

Ahh kirsty & phil still ramping property during the biggest price crash of all time.Cancer is too good for these two tw@ts!.

[stitchyman]

what a bloody funny vid.. i wonder if i should make an australian one for over here.. everyone seems in denial and think the high prices are sustainable..

[guslingus]

Very True stitchyman.

Im in Brisvegas and everyone is in denial.. An average brick home with a pool up our street just sold for $920 000. To me its worth about $400 max. But im old school... Were you had to be personally worth the house you lived in, not living on massive debt and in hope of better times ahead.

[OneStopView]

It's all happening.... your video is becoming more and more realistic by the day..... sitting back and waiting for it all to happen..... more and more doom and gloom on the news day by day.....

[nlphypnosis]

Excellent video very well done.

[SPOILTBALLOT]

awesome video and I have always loved that track. The shocker is that prices should have corrected back in 2005 as you video shows. There are 2 more years of growth to go onto and then come off your data

[303iz4uNme]

Politicians and economists will need to stop sponsoring homelessness and freeze housing and food prices and pass a legislation than bans it off of the stockmarkets permanently! food and shelter are not luxuries and no one has the right to hike the prices of these things and play with peoples lives SALARIES DONT RISE PROPORTIONATELY! NEITHER SHOULD THESE homes and food must stop rising or else, well... u can guess.

[30percentplusreturns]

Of course the crash is here. I love that graph in the video where it shows the line going up then just stagnation, hahahahahah. Hillarious. Houses have to come down. It was all fake growth from fake lending. Houses will go back to pre 1999 house prices.

[cam230723]

C'MON THE HOUSE PRICE CRASH!!!!

[measuringstick]

its about time the houses went down its impossible to buy a house these days unless you buy a house with a partner and you both have good paying jobs.

but even though house prices have dropped renting a house is still the same which is stupid your basically paying off the morgage for someone else and they end up getting the house for nothing. its about time rent came down. i am looking for a new house now and the average rent is £550 a month for where i want to go. this country sucks

[duffduffbeerbeer]

over the long term your absolutely right, house prices will on average go up every year if you look at it over lets say a 20 year period, but over the next 2 years there will be a 15 to 30% drop in all house prices nation wide, yes some areas will fall far less than others but everywhere will have a significent fall. so in the short term yes you can lose alot of money in houses but in the long term they are a fantastic investment... we have some very difficult times ahead 2008 to 2010.....

[owain64]

Not if the price of oil keeps going up,nobody will be able the to afford to heat them up.

50% Drop then hold and then a further drop,because by then people will be flocking to warmer climate and selling there houses like hot cakes to get away.

[NUCLEARDOLPHIN]

its all over, the crash is here fuckers!!!!!!

[cam230723]

Hey property bulls-where have you gone?

Its all gone quiet over there!

Its all gone quiet over there!

[aj010139]

to all the estate agents out there; hah haha hahahah

[KamikazeElvis]

To all the morons who said it would never happen again.. HARRR HARRRR! (in the style of Nelson from the Simpsons)

[KingUser2008]

Thats good, the prices will fall. That would be a good time to buy!

[cam230723]

Ha ha-top vid- House price crash has arrived and its going to be bigger and better than ever. Mrs Allsop- would you like a slice of humble pie with your hat?

[Monocots]

"Crash" by "The Primitives" - it's in the credits!

[subrosa3624]

Thanks, I really should have noticed, but I was too busy watching the value of my home go into the toilet. I shall buy a copy and play it when the bailiffs come around to throw me out.

[merLin123a]

i feel guilty now. i laughed.

[neemz2000]

Has Kirstie eaten her hat yet?

[russedwards777]

Brilliant... But the tendency of organized crime - I mean Russian "businessmen" to launder money through eral estate in London may keep the prices from collapsing.

[MacPhersonMcSwegan]

An Army For A Reaction

has been born

tonight

inside our hearts

A.F.A.R.

and as sure as can be

arms around the world

pretty good!

[zimboonian]

The £ will be devalued shortly leading to 3 rate cuts this year, with a weaker £ the 'price' of houses will go up which will be relative to the 'cost' of buying them. In other words, this is the point at which we will see yet another huge boom in prices as salaries etc are increased to combat a weaker currency, and everyone will 'think' they have more £ in their pocket.

[samone217]

lol, you mean like in the U.S?

[zimboonian]

Yep, which drives up costs of TV's, and Services which are all now in India as the Rupee is strong against the $l, most Indian workers will be 25% worse off this year. Those in the UK/US wont notice a thing.

[samone217]

Prices in the US in some parts are below 50% their 2005 high. The only place they're staying up is in New York City (note they're staying up not going up!). Even places like San Fran, are seeing drops from 25-35% and they're nowhere near the end of it.

it was a bubble, and bubbles correct. the prices will return to long term price/earnings ratios which is way too high at the moment.

People in the US/UK will notice their standard of living going down over the next few years. that's for sure

[MyPersonalAntichrist]

To all those greedy people who thought rising house prices were a good thing, and are now in bitter denial about a crash coming.. it's time to take you're head out of your arse and assume the brace position! BWAAHAHAHAHAHHH!

[nataliaisfrickncool]

hahahaha.....your a real classic budy..hahaha...

[nedge82]

It's "you're" not "your" :)

[spudgun2k]

Ah well, two years late but here it is at last. Enjoy the downturn everyone - especially those that have opted-out of this mania.

[eddie7702]

The rise and rise of house prices has been a golden goose for the ever growing number of property investors, mortgage brokers and estate agents, but has caused nothing but utter misery for everyone else. It has caused massive social problems through overcrowding, the delaying of having children and increased social deprivation. The folk who have been greedy in this game need to realise the true cost of their sports cars and luxurious lifestyles and have some kind of conscience, but they won't.

[littlepumpkin1502]

note the clips and headlines are from 2005. think how much those who didnt buy then missede out on! dont listen to the speculators and parasites on housepricecrash website they are evil and misguided.

[andyparf]

common man don`t worry about that website, this is true and is happening now,or do you believe in no future for the young, and wage slavery is best for us all

[littlepumpkin1502]

People who set up the website house price crash greedily speculated by selling their houses to rent in 2003 and 2004 .they have missed out on a fortune and are bitter. they are desperate. particularly financial misplanner jonathan davis - hope his clients didnt take his advice - he sold to rent in 2002!

[cadillacman007]

There is no such thing as a property crash,house prices do not crash,they deflate or stagnate for a short while.

In the long term they always go up.

[andyparf]

the only reason they constantly go up in the long term is because of inflation and the fact that each year paper money is devalued

House prices never crash look to the USA, with every boom comes a bust and this one is overdue

[egnbigdave]

Big Deflation in the 90's.. because OBVIOUSLY they DONT crash... what are you on? LOL

Myself and my wife are on pretty good money and we'd be hard pushed to afford an ex-council house in a scummy area. To afford an "Average" three bedroom home here in an OK area you'd need a 60K income.. and yes we DO work hard.. whilst trying to find time to spend with our kid so she doesnt grow up to be like the majority of latch-key yobs round here.

[caparn11]

If the price of your house goes down by £100,000 and you are on an average wage then I would call that a crash!

How long would it take for someone on an average wage to save £100,000 just with regular contributions into a savings account???

[JWS1289]

@cadillacman007 your an idiot if you think house prices always go up, I hope your in negative equity.

[cadillacman007]

@JWS1289 Your personal insult is childish and uncalled for.

And why would you hope I'm in negative equity?...what have I done to you?

House prices do indeed go up in the long term.

Property investing is a long term commitment.

Negative equity is only a problem if you are forced to sell.

I'm a pro investor and despite the credit crunch,my portfolio is cash flow positive.

Do you have experience as an investor?..if so,what is your strategy?

[plasmalux]

I've always wondered why several tonnes of sand and wood should cost 157,000 on average.

[cadillacman007]

You pay for the land, not just the building materials.

[pocdh]

you pay for the building,and then have to purchase the ground on a seperate issue or what is known as ground rent

[clintepps]

I got told in 2003 "dont buy a house, they are going to crash!!" Well that litle shoebox in london has doubled in price now, bring on a 15% correction. Who cares!!

[barnaby666]

i worked hand to mouth for what?? cant afford f**k all. havent got a pot to piss in or a window to throw it out. im just going to stay on the dol and ride the torm out.

[curlythepig]

The crash has started . Don't believe those with vested interests in the Media . By January 2008, they will have no place to hide.

[Avalon888]

STOPBUYINGHOUSESdotCOdotUK

STOPBUYINGHOUSESdotCOdotUK

STOPBUYINGHOUSESdotCOdotUK

[wrigglesworth]

This is an excellent piece of editing, and always makes me laugh. However, as an analysis of the UK housing market you'd be better off looking elsewhere. The video has been around for a few years, and has been wrong for the duration. I remember when the graph at the beginning had 2006 as the bottom of the crash. I see it's been cunningly amended to 2009. I think we can expect to see the date put back a few more times yet.

[phantum1234588]

The basics are there even if the timing is off, how many economic analysts can predict time scale accuratley. none. it is coming and the video is accurate in my eyes. its already playin out!

[wrigglesworth]

Hi Phantum - the timing is out, and the timing is everything. If you'd believed the video when it first came out (around 2004) and stayed out of the market you would have lost a fortune - more than any correction would recoup. If you stay out now and we have another three years of growth, you'll be worse off still.

One day that video will come true, no doubt about it. One day the sun won't rise again in the morning. But you need to know when, and the maker of that video clearly does not!

[Frizzers]

Well, since this (excellent) video was made in 2005, house prices have gone up, quite dramatically so in London. 'What happens next?' asks the graphic. 'Stagnation or correction?' It didn't give the option of price rises. This may be right eventually, but from 2005 to now, it's been wrong.

[usenetposts]

True, but only because of Polish immigration.

[maddohartlepool]

Firstly pay hasn't increased at the same rate as inflation, secondly; inflation figures are kept artificially low by taking such things as house prices out of the equation. So that the government can keep interest rates low, to keep people borrowing.

Do you understand what rising house prices are? They are inflation! If house prices go up 200%, that means HPI (house price inflation) is at 200% !!!! Your wages may have only gone up by 8%!!!! Inflation is a BAD THING!!!!

[ZZSherriff]

great Video

[DESMONDTHEDEVILCAT]

wow thats what i call hindsight you were just a year out on the house price crash...aug 2007 look for the 1st clear indication that prices are finally on the way down.check out housepricecrash to follow the REAL state of the english housing market.

[resa237]

Stunning. Fantastic editing. I'm a first time buyer and if enough of us hold out (crap time to buy all round)...the pyramid will fall. HANG ON IN THERE.

[tenchama7]

It's not a question of if,it's just a question of

when.When bubbles burst,there's always an over-correction ,so the longer prices rise the deeper the

correction.(I lived in Japan from 1989 to 2004,watched

it happen)

[tatton1234]

Excellent,very poignant.

[rulllar]

It is funny but the articles in there are misleading. Unemployment has since those articles gone down but it only went up from foreigners arriving. Employment itself has consistantly been up. More and more people have had jobs constantly. Industry has also recovered again. Therefore a correction might be in place, but what the video tries to show is not a correct comparison (last corrections were during real recessions) and therefore unlikely to happen at this current stage.

[rulllar]

I also want to point out that for the first time in British history peoples average age of purchase is much lower, and the number of single people buying is radically up. This is due to the wealth explosion of successful young people. As a result the market of today (e.g. Average home size) is radically different than any of the times the graph shown on the clip over past "corrections". I think the graph is clearly oversimplified as a result, although admit it is frightening nevertheless.

[chinsup]

the video doesn't understand economics, the wealth we've been generating these years is huge, and pay is beating inflation.

[maddohartlepool]

Firstly pay hasn't increased at the same rate as inflation, secondly; inflation figures are kept artificially low by taking such things as house prices out of the equation. So that the government can keep interest rates low, to keep people borrowing.

Do you understand what rising house prices are? They are inflation! If house prices go up 200%, that means HPI (house price inflation) is at 200% !!!! Your wages may have only gone up by 8%!!!! Inflation is a BAD THING!!!!

[chinsup]

yea cause independant studys and the independant stock exchange wants a leftwing party in and they tell you about inflation, theres a shitload more to houseprices people where legally earning £1:50 10 years ago, retail prices(and you spend a shitload at the supermarket every year) has barely moved, and if i was you have a look at inflation and intrest rates before the bank of england became independant

[IU90]

Don't know about Britain, but in bubbleized areas of the U.S. like Cali, Miami, AZ, and LV, the answer is YES---the ship soon be sinking.

[ksocean]

Who's the chick--some real estate industry shill like David Lereah we have in the states? Funny.

[HousePriceCrash]

Ha ha, very very funny and TRUE!

[ramgarsan]

very good , it's funny, In Spain we have a similar problem with housing maybe in a previous phase, Congratulations!!

(in spanish)

Muy bueno, en España tenemos una situacion similar aunque tal vez en una fase previa.

Felicidades!!