No it won’t sell for 200k. To get a sale in a reasonable time frame (3 months) I would need to drop to around 120~130k.
But that’s an economic fundamental law, when the market is screwed you need to effectively give away something you need to sell!
We are not far from the bottom. As soon as it’s reached I expect there will be significant buyers and prices will rise rapidly (relatively speaking). I think to get 200k for my property we need to be 1 or 2 years on from the bottom of the market.
If you can wait then do it, selling now is the worst time possible unless you can gain from the collapse of the pound. But to answer your question, things always bounce back up from a crash.
Thanks for your insight jp1. What you say makes sense and I agree with, from what you have said, that selling now, unless you are desperate, is a bad move. So I think I will sit on it for another 3 years and turn to rentals to cover any costs. Lets keep our fingers crossed that the bottom of the market is some time in 2011. Thanks for that.