"House prices could slump by another 55 per cent, a respected City forecaster warns. It also predicts a deep recession lasting throughout next year and a 'very real probability' that Britain will go bankrupt. The report leaked yesterday from financial analysts Numis Securities says that the collapse in house prices is not 'anywhere near over'.
They have already fallen 21 per cent from their peak, but the report says they will slump further by up to 55 per cent if the over-correction in prices is as bad as in the early 1990s.
That would leave 6million Britons in negative equity - when their house is worth less than their mortgage. "
If you're selling your house then the one you are buying has also gone down in price. If you trade UP the house price fall is even greater.
If you borrow money the interest payments are less than ever.
If you already have a mortgage then repayments have fallen (unless your mortgage is fixed).
So, unless you are emigrating (and the recession is worldwide anyway) what's the problem with falling house prices?
There isn't one!
...or is there a mistake in the above analysis?
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4 days ago