25% fall in house price

[temi]

House prices could fall by 25 per cent if the credit crunch persists, with the market declining by 10 per cent this year and by a further 15 percentage points in 2009, a new study suggests.
The pain will be felt in all but the most exclusive postcodes, according to Savills, the estate agent.
However, action by lenders could limit the credit crunch impact to a slide of 6 per cent.
Savills’ revised forecasts coincide with figures from Hometrack, the property data business, showing that house prices have dropped a further 0.6 per cent in the past month, the seventh consecutive fall.



source/full story

 

[Cryxellis]

I'd like to own a house, I just don't have enough money for that. Anyway thanks for the article. Nice finding

 

[OldWelshGuy]

temi, not nit picking but your figures are wrong

10% + 15% is actually 23.5% as it compounds down.

e.g.
£100 -10% = £90
£90 - 15% = £76.50

100-76.50 = 23.5

just pointing out like

 

[temi]

Thanks for that Livetech, OWG is shooting the messenger rather than the source of the message

Looking at it, it looks like the Times got it wrong, rather than Temi.

Of course, we can assume it is an error, rather than scaremongering from a newspaper due to the fact that most people would take the story at face value rather than work it out. After all, newspapers never do that, do they?

 

[vicdigi]

And add to that 23-25% the interest you pay over 25 years.

Combined, on a property valued at £300,000, that'll be about £150,000 less you pay over that period.

Figure this. By holding out (if you are able to) not only do you make those great savings but you also plenty of time to increase the size of your deposit which in turn will reduce your mortgage payments even more.

Let's just all that inflation in the UK does not give us a kick where it hurts most.