The Property Sales People

This week I heard about yet another professional suggesting to clients that buying a property now was a daft decision. He's entitled to his opinion but what worries me is that the only way any of us are able to look at the market is through the 'rear view mirror'. We can now accurately pinpoint the start of the current market problems as October of 2007 and the previous market 'blip' as August 1988. What we can't do is accurately forecast the bottom of the market and the beginning of the recovery – until we've already passed by it. My belief is that we are nearer the bottom of things than a lot of so-called experts predict. The 'media' is reporting prices falling back about 15% from the peak of the market. Any truthful agent will confirm that property is being sold at 25 -30% less now, which is about the level that prices have fallen by in previous market downturns (1988-1993). So, when prices start to go the other way they will do so rapidly. It is

  Extracted from the BBC web site reporting on today's reduction in Base Rate to 2%   'I am dead keen to buy a flat or house. This is all good news, surely? The interest rate on your prospective mortgage will probably be lower. But, frankly, paying your monthly repayments will not be your big problem, so long as you keep your job. The main way in which mortgages are being rationed is by lenders demanding large deposits. Most mortgage deals now require 15%, 20% or even 25% as a down payment. And the best deals require deposits of 40%. There is a good reason for this, by the way. House prices are still falling fast and some experts think they could fall another 20% this coming year. How happy will you be if our home has lost a fifth of its value in 12 months' time? Think before you buy. '   What I'd really like to know is who are the 'experts' and how do they calculate the 20%? Quoting it virtually makes it a self-fulfilling prophecy. Well this 'ex