Thursday, September 18, 2008

Half Price Houses?


Will De Cleene over at gonZoFreakpower reckons Gareth Morgan and Bernard Hickey are being modest with their talk of a 30% drop in house prices.
Will reckons that 50% is more likely here and in the US , the correction could be 80% if this graph is anything to go by.
I'm not sure if Will is correct but as a would be first-timebuyer, it all seem good.
The major question that remians though, is when will the best time to buy be? When will prices reach their rock bottom?
Hat tip:Gonzofreakpower Brains Trust

3 comments:

homepaddock said...

"The major question that remians though, is when will the best time to buy be? When will prices reach their rock bottom?"

If you knew that you'd make a killing. But they don't ring a bell at the top and bottom of the market so you can only know recognise the peaks and troughs in hindsight.

The best time to purchase is when you find what you want and can afford to buy it.

Lucyna Maria said...

I really doubt houses are going to be anywhere near half-price, considering how expensive it is to build a new house. Only the truly desperate would sell for below replacement value.

Will de Cleene said...

Lucyna, it will be a combination of price drops and inflation gobbling those lower prices decreasing them in real terms.