#6 Don't obsess about house prices!

by Jane Baker on 15 June 2009  |  4 comments
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My first 'what not to do' insight this week is all about everyone's favourite topic...

My first 'what not to do' insight this week is all about everyone's favourite topic...

#6 Don't obsess about house prices!

Nothing stirs up more debate on lovemoney.com than the price of property. Have we hit the bottom of the crash yet? When will prices recover? Is it the right time to buy/sell. These really are the $64,000 questions. But despite endless pontificating, none of us really know what will happen, until it happens.  

Just last week, we wrote about a false dawn for house prices. Two leading mortgage lenders - Halifax and Nationwide - reported that house prices picked up in May. But, before you get too excited (or depressed), the reality is, year-on-year, prices are still falling. They're just falling at a slightly slower rate.

I do get a teeny bit tired of house price data coming at me from all angles, especially when one index reports the exact opposite of another. And, after all, national data only covers up regional variations, so you can't tell the hotspots from the hovels anyway.  

I really don't think we should get too fixated on the changing cost of bricks and mortar, particularly if you're not planning to buy or sell any time soon. Who cares, right?

But I guess that's easy for me to say. Having sold my house in 2005, I've since moved to one of the most expensive parts of the country. I've been stuck renting ever since, and I don't imagine that'll change for a good few years.

Having said that, if you're among the unlucky ones who are staring negative equity in the face, or your life is on hold because you can't afford to sell, or perhaps you're a wannabe first-time buyer, I really do sympathise. This particular obsession might be very tricky to give up.