with the recent slump in the stock markets could this spill over into the property market should we be worried

5 Comments

1. John says:

   May 8, 2010 at 4:17 am

   It is hard to say.

   In some markets property is slumping. Specific regions or cities in the US for example. In other places house prices are rising and they have not seen a boom prior. Hence houses look safer than equities so you might get a swing from equities to property. As the headlines are doom and gloom for both sectors people might prefer cash.

   In the past a falling stock market can stimulate a shift to other assets. After the stock market blow out in 2001 the UK experienced a definite shift to property.
2. mesun1408 says:

   May 11, 2010 at 11:28 am

   Wij kunnen hopen.
3. beanie says:

   May 14, 2010 at 3:45 am

   I hope so. I am sick of not being able to afford to buy somewhere to live and in the meantime there are these people walk around “gloating” about the fact they own 2 “buy to let” properties and how much money they have made this year and that. In the meantime, they are driving first time buyers out of the market. This practice of of multi-home owning should be banned.
4. gaya.0001 says:

   May 14, 2010 at 6:12 pm

   I think not possible
5. newmexicorealestateforms says:

   May 14, 2010 at 11:39 pm

   Greed always gets paid back. This slump is due to so much money having been put out to underwrite extremely risky borrowers of loans for house purchases.
   With the foreclosures continuing to spiral out of control, late payments on notes and mortgages being the highest ever and all that money that was loaned out not coming into the coffers, and with the secondary market having bought all those high risk loans; guess what, the investors are saying the heck with you, you were too greedy and didn’t follow a conservative process when making home loans as in the past, you told us it would work, but it is not, so we are not going to invest in your company, go get your money somewhere else, and we want our stock investment money back before you loose that too.
   Now those high risk lenders themselves are facing bankruptcy without the investors money and their stock continue the downward spiral, and to make matters worse, some of the loan moneys came from government guaranteed programs and the government is looking at the practice of these companies relative to the process they took to convince the government that these loans met their conservative criteria. (Remember the Savings and Loans fiasco?)
   I don’t foresee anything happening to the real estate market that has always and historically done it by the book. But I do see a substantial opportunity to buy foreclosures at very low prices and unfortunately a lack of spending from the lower middle class due to the hits this will take on credit histories of over a million consumers, which in my opinion will lead within a year and a half to the service market part of the economy taking a substantial employment downturn and consequently more less spending and if the turn around of the foreclosures do not take place then the spiral of less spending will continue and sooner or later we will be in an inflationary spiral due to the higher cost of money and lack of spending by the middle class.
   Having said all that remember that this forum only offers opinions and opinions are like lawyers everyone has one, so always check with a licensed financial guru on matters that are so complex.
   Buena Suerte