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What goes up must come down

gbh · 2007-11-23 18:44:54

Did we honestly think house prices would keep rising forever? There was always going to be a crunch point, when the peak was reached. It started with plentiful credit to pay for expensive houses. Now the banks are starting the reposessions and tightening up the credit. People can't get credit as freely and houses are now…

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23-11-2007 7:44pm

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gbh

Closed Accounts Posts: 429 ✭✭

Join Date: March 2006

Posts: 366

Did we honestly think house prices would keep rising forever?

There was always going to be a crunch point, when the peak was reached. It started with plentiful credit to pay for expensive houses. Now the banks are starting the reposessions and tightening up the credit. People can't get credit as freely and houses are now no longer value for investors because rent doesnt meet mortgage costs. So houses must come down eventually, as the credit is reigned in by the banks. And no I don't think we are seeing a temporary blip. The investors are no longer around and they were a large market for builders. So they must reduce prices to attract buyers. And with global uncertainty the prices will keep dropping. No-one buys when there is uncertainty about the middle east, about the state of the dollar, oil prices etc.

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