Investors Moving In?

paulmx3

wibble68 wrote: »

I understand your scepticism.

I'm not an estate agent, just one of many people in this country who have been waiting for a very long time for prices to come down.

My post was purely to gauge opinion on whether people had noticed an increase in sales recently.

my only worry with people who buy now will just fuel the problem,with prices in the last few years being unsustainably high people now think they are getting a bargain so those who can are buying.but,i fear they still have some way to drop yet,at least another 25-30% (and possibly more)as far as im concerned before houses reach a sustainable value.

average house prices should have at least a small link to average wages with a sensible link to borrowing levels compared to average wages.over the last few years this has not been the case at all.

if average house prices are now approx £150k i would say when they drop to around the £100k mark you will have a fair reflection of there true value,and those that are buying now or those that are relying on the artificially low interest rates may be in for a little shock.

remember a mortgage lasts 25-30 years i think if some of the buyers from the last few years start rubbing there hands together at the prospect of out low interest rates at the moment,i would ask them to look back no more than 15 years ago to see how in reality rates may go over the life of a mortgage.

wibble68_2

Having done a bit more research I've found that the upturn in sales in my area is partly due the governments home buy scheme, investors and people who have been sitting on the side lines with big deposits.

My fear is that just as houses were becoming more affordable in these parts, government schemes will create panic buying in area's of short supply.

I guess Gordon Brown's legacy of building the economy on high house prices will be very hard to reverse. There will be plenty of boom and bust in the future unless house prices are controlled to reflect incomes.

Thrugelmir

wibble68 wrote: »

Having done a bit more research I've found that the upturn in sales in my area is partly due the governments home buy scheme, investors and people who have been sitting on the side lines with big deposits.

My fear is that just as houses were becoming more affordable in these parts, government schemes will create panic buying in area's of short supply.

I guess Gordon Brown's legacy of building the economy on high house prices will be very hard to reverse. There will be plenty of boom and bust in the future unless house prices are controlled to reflect incomes.

Is the upturn reflected in price increases or just higher sales volume? And how do these compare to the peak of the market?

Trends can't be determined from a short period of data.

Conrad

I'm getting quite a lot more buyer enquiries, often made possible with Daddy's help / Government deposits / vendors cashbacks.

Still lenders are very tight though.

Thrugelmir

Conrad wrote: »

I'm getting quite a lot more buyer enquiries, often made possible with Daddy's help / Government deposits / vendors cashbacks.

Still lenders are very tight though.

Is this due part to the fact that you have less competition from other brokers?

wibble68_2

Thrugelmir wrote: »

Is the upturn reflected in price increases or just higher sales volume? And how do these compare to the peak of the market?

Trends can't be determined from a short period of data.

2 months ago you could pick up a newer 2 bed terrace for between 155 and 160. A few have now sold in the late 160's.

At peak they would have achieved near the 200k mark.

I hope this is just a blip.

cocktail

[quote=wibble68;19167127]Having done a bit more research I've found that the upturn in sales in my area is partly due the governments home buy scheme, investors and people who have been sitting on the side lines with big deposits.

My fear is that just as houses were becoming more affordable in these parts, government schemes will create panic buying in area's of short supply.

I guess Gordon Brown's legacy of building the economy on high house prices will be very hard to reverse. There will be plenty of boom and bust in the future unless house prices are controlled to reflect incomes.[/quote]
i think rather incomes would need to match up to the house prices. with inflation just round the corner and devaluation of the pound in process, it should only be a matter of time before salaries would need to rise. house prices have to rise, equated with the devaluation of the pound. so though houses would cost more in pound terms, effectively it would only be reflecting the devalued pound.