House price predictions for 2009

With house prices falling, when is the best time to buy? I think house prices will fall slowly and steadily at least until 2012. At the moment houseowners are not selling because they currently refuse to accept lower valuations, and banks are not lending as much as before. Properties can be had for slightly cheaper prices at auctions, but even so, there is no reason for houses to not continue to fall in price.

This is mainly due to the fact that houseprices are very unaffordable to most people (too expensive) and I believe this is what caused the crash in the first place. I think house prices will average out to 200k nationally. This takes into account a couple earning the average income of 25k a year each and 4x that, which has historically been a level banks are comfortable lending at. Everyone else will have to get bigger deposits by saving up money, getting money from relatives, or rent. Simple as that.

My calculations show there is nothing wrong with renting, it is not "dead money", as some people have claimed. It is a perfectly good way of saving money. This year I spoke to a landlord who operated a house share with 16 tenants, one room per tenant, and one of the tenants was a doctor and his wife, paying £400 a month for the room with no other bills! Imagine how much money they have the chance to save! Rent and grow rich looks like an excellent strategy, the benefits are excellent.

This buy to let millionaire couple were on the UK rich list, but the fall in property prices is now giving them serious concern. This enforces my belief that it is not good to take on too much debt in property as it is a double-edged sword if it all goes wrong:
http://forums.moneysavingexpert.com/showthread.html?t=1209371

An editor at moneyweek has the following view on property prices:
http://www.moneyweek.com/investments/property/wake-up-the-partys-over-14045.aspx

In conclusion, I won't even consider buying a house in 2009, but in 2010 I will look at the prices of cheap affordable flats. I think I will probably end up renting for a while as this means I retain liquidity of my money and can keep it working for me. One thing is for sure, nothing is lost by not buying a property for the next 5 years. The price can only go lower.