House Prices in Edinburgh

[Munch]

This is a key point crutchster, almost everything is linked into the housing market including the economy.

My gut feeling on all this, is that as mortgages funds become more available again, and interest rates drop, the market will pick up.

When will these things happen, again my gut feeling is next spring, so there will probably be a drop in prices between now and next spring of around 10% as sellers reduce prices so they can move on.

I spoke to a developer yesterday who has just bought 4 properties, he got them all at good prices, around 10 percent less than he would have paid a year ago, he comented that he expected to sell them for less than he would have got a year ago, so big deal, its business as usual.

PS - Now you have someone from the ESPC on Newsnight saying they expected these latest figures and they didn't think Edinburgh was immune afterall !! I SAID THAT A YEAR AGO. THE ESPC DID NOT. As I said last year and was vilified for - I know more than most alleged 'experts' in the Edinburgh Housing Market - FACT.

 

[Chip Douglas]

To be fair to crutchy he has been banging on about this for donkeys compared to the head in the sand brigade on here.

 

My gripe for just about as long has been the greed of the banks.

They fuelled the housing price bubble because it was making them massive profits.

 

It used to be you got a mortgage based on say 3 1/2 times salary, say the average first time buyer was earning ?20,000, that meant a first time buyers affordable starter home was ? 70,000.

 

How come then one bedroom flats in gorgie were selling for ?130,000.

Because greedy bankers realised if they gave 4 and then 5 and then 6 times salary loans they could screw more money out of vulnerable people.

 

All very well providing house prices continued to rise, never likely to happen ver batum.

 

The result is Banks dont have money to loan now they have been reigned in, they have been so corrupt they dont even trust each other.

The Banks will be regulated like never before, their profits will be nothing like they were in the past as gambling other peoples money and money that does not exist will be prohibited.

 

If you have been conned into buying banks shares get rid of them and sometime in the not too distant future the executives will be brought to book.

 

I've long thought the situation was untenable, it stands to reason. It's completely ludicrous that you need to be making in excess of 40K per year to get yourself on the market with a minimal deposit (and have a chance of affording it).

 

Anyone who even considered taking a mortgage on in excess of this multiple on a 100% plus mortgage must be insane, these are the guys who will be tooting their pants at the moment.

 

I'm all for a re-adjustment in the market, I just don't see prices coming down in this crash prediction fashion.