Has the Property Market learnt from the House Price Crash?

The property market is starting to recover from the recent housing crash witnessed and experienced around the world. However, it is a start of a recovery and certainly in our minds has not ‘recovered’ as some would like us to believe will happen very shortly or has actually happened and we just missed it.

The economic meltdown caused by the banking crisis will no doubt continue to affect the property market for some time (unless it was really caused by the introduction of HIPs) though the phoenix could rise out of the flames with some new and improved solid foundations. This possibility does potentially bring some questions to the forefront;

Are we still looking and hoping for rapid increases in property value with house prices that continue from where we left off in boom times?

Or, have we learnt from past mistakes and will ensure that these are not allowed to be repeated?

In many walks of life steady, consistent and reliable can be seen as slightly boring, dull and frankly not very exciting; BUT is this not exactly what the housing market needs for a period?

Are we really advocating a preference for our children to chase the Pete Doherty type?

Boom and bust will certainly not seem attractive to the many people who entered the market at a time where  unsustainable house prices rises were at their peak.

Lloyd Blankfein CEO of Goldman Sachs, told an interviewer that Goldman Sachs ‘was doing God’s work’ which he seemed quite serious about, this must make even the least religious of people shake their heads with complete dismay.

If the ‘wild child’ partner is still appearing more attractive than the solid, reliable option; recent commentary within the Guardian may question this belief and looks at the economic advantages which could be gained by many Americans by ‘walking away from negative equity’ . This is also likely to apply to a number of people within the UK and surely is not the way a socially responsible society should allow banks and the property market to head once again.

Gradual rises in the property market which return realistic and ‘sensible’ growth figures year on year are not to be feared and rejected as the way forward. It can seem many do not want to promote, publicise or work towards achieving this, even when we are so close to the recent turmoil in the property market.   Instead, the headlines continue to read in a manner which promotes a boom or bust scenario.

‘House prices to increase 40% by 2013.’

‘Property prices to fall by 10% in 2010’

I am sure there will be many parents who have said within their passed on snippets of wisdom to their children;

“Son, make as many mistakes as you like…… just do not make the same mistake twice.”

Are we already at real risk of that happening within the property market? If so, what is the solution?

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