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Debate House Prices


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First time buyers are coming back to the market.

Really2
Really2 Posts: 12,397 Forumite
10,000 Posts Combo Breaker
in Debate House Prices & the Economy
Well according to fool.
http://www.fool.co.uk/news/property-home/mortgages/2009/01/30/the-return-of-first-time-buyers.aspx?source=uemfoleml0010038

Interesting fact was that 40% of mortgage aplications in January were FTB's.

I know this is not going to stop falls in prices but hopefuly increasing FTB's will help the market and a bit and may be a sign of better liquidity.:confused:
«134

Comments

  • tommy75
    tommy75 Posts: 583 Forumite
    Why are people constantly trying to keep the housing market inflated way above what it should be. Nobody loses when houses are cheaper, apart from the government, EA's etc. Do people not want a life and be able to go on holiday now and then instead of being slaves to high payments causing stress and depression and hurt? When will the public learn? The get rich quick scheme is over, theres only one winner with high prices now and its not you.
  • mizzbiz
    mizzbiz Posts: 1,434 Forumite
    Real bargains to be had for first time buyers then. Only 8X income rather than 9X income last year. :eek:

    Yay! Let's start telling everyone on here to sink their soul into them again.
    I'll have some cheese please, bob.
  • tommy75
    tommy75 Posts: 583 Forumite
    Try reading the comments. And when did all these first time buyers suddenly have huge deposts to get these mortgages btw? What a load of rubbish..
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    What coments buy people on the net are fact not the actual morgage figures.
    Look we know prices are still going to come down.

    But why does a post of a fact that 40% of mortgage applications this month have been done by FTB's cause such offence and anger.:confused:

    I would of thought that any data on houses should be taken in and looked at if you were looking to buy a house in the future.:confused:

    No ones saying buy now but it is fairly obvious some people are buying now. Pherhaps down to lower prices and lower IR rates.

    I don't think the HPC people should fear it but at least look at it rarther than just chanting it ain't happening. Like i said it wont stop falls but it is interesting and fear and anger will not change tha fact people ar looking rightly or wrongly.
  • Cat695
    Cat695 Posts: 3,647 Forumite
    Your right Really

    House prices are and will continue to fall especially as job losses are rising quite alot by the looks of things

    I believe someone mentioned a few months back on here that you will probably see a hike in house buying as the first wave of people who think its all over go out and panic buy.

    I think the worst is yet to come....especially now that even crash Gordon and his crew are saying they have no idea how they can get out of it.
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Cat695 wrote: »
    Your right Really

    House prices are and will continue to fall especially as job losses are rising quite alot by the looks of things

    I believe someone mentioned a few months back on here that you will probably see a hike in house buying as the first wave of people who think its all over go out and panic buy.

    I think the worst is yet to come....especially now that even crash Gordon and his crew are saying they have no idea how they can get out of it.

    Personaly I think it is the people who have got through the last year virtualy untouched, fell fairly secure in their job and the most important point not going to put their life on hold any longer. (Not saying all renters feel like that but some definatly do.)
    If you have a big deposit and find a house you would be happy with for 5-25 years it is not a terrible time to buy (especialy if you can get a good long term fixed rate)
    Lets face it you will loose equity but how much of that could be clawed back with a low fixed rate in 3 years time(as rates could well rocket) there have been worse times to buy.
    The 3rd quater 07:)
  • Cat695
    Cat695 Posts: 3,647 Forumite
    Really2 wrote: »
    Personaly I think it is the people who have got through the last year virtualy untouched, fell fairly secure in their job and the most important point not going to put their life on hold any longer. (Not saying all renters feel like that but some definatly do.)
    If you have a big deposit and find a house you would be happy with for 5-25 years it is not a terrible time to buy (especialy if you can get a good long term fixed rate)
    Lets face it you will loose equity but how much of that could be clawed back with a low fixed rate in 3 years time(as rates could well rocket) there have been worse times to buy.
    The 3rd quater 07:)

    I bet some people are really kicking themselves right now......I would say I feel sorry for them but I rarely feel sorry for anybody.....I guess alot of people (the smart ones at least) will just sit tight and ride it out...but I hope not or I won't be getting a bargain when I go looking to buy
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • tommy75
    tommy75 Posts: 583 Forumite
    The only people buying now are the ones with big deposits able to get a good mortgage rate and people with good discounts. People jump on a rising market not to be left behind and people jump on a falling market if they are not bothered about being in Neg equity. Yes its all about timing but would you buy in the falling market of the biggest bubble in history on top of everything else thats happened since August 08 when we are just starting to see the effects of it in the UK? Do you think the housing market is suddenly going to swing round and increase at stupid rates again after what has just happened and jobs are just starting to go? Theres just under 2 million unemployed now with estimates of 3 million by the end of 09. Yes, its a little different than the 70s, 80s, and 90s recessions because the public still seem to be obsessed with houses. I don't suddenly see many FTB with cash deposits of 10k-15k ready to buy run down 100 year old terrace houses. Most people in this country are in dept. Remember the national average wage is under 25k.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    tommy75 wrote: »
    . Remember the national average wage is under 25k.

    I thought full time it was around £35K?

    I think you are right about the obsession with houses. How this effects things in the future who knows.

    I purchased in a falling market but that was becase I got a massive discount (I was 12H away from being an STR) and I have a young son so moving from a house and using the HPI as a deposit and hopefullya hedge against NE and paying a comparativly low rent (mortgage works out a lot cheaper than renting)
    But I am not a FTB so buying at the bottom of the market was not as important to me as selling near the top.
  • Cat695
    Cat695 Posts: 3,647 Forumite
    Really2 wrote: »
    I thought full time it was around £35K?


    I believe 35k is the national average income of a household not the average wage
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
This discussion has been closed.
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