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Debate House Prices


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Wake up...... IT'S OVER

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Comments

  • VfM4meplse
    VfM4meplse Posts: 34,269 Forumite
    10,000 Posts Combo Breaker I've been Money Tipped!
    davidb881 wrote: »
    Back to the point.
    My experience is that people with money are buying houses. If people could get a mortgage they would buy a house too. House prices are declining because of this alone. To my knowledge 95% of the working population are still, well, working. I expect a sharp reverse in prices, when banks sort themselves out and I believe investors know it and it’s laughable to think that financial institutions will become more responsible. The horse has already bolted and the horse will need to reined in, tethered and then sold even more imaginative credit products.

    Are you an EA and is this an attempt to stoke up confidence in the market?
    Value-for-money-for-me-puhleeze!

    "No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio

    Hope is not a strategy :D...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!
  • davidb881
    davidb881 Posts: 37 Forumite
    VfM4meplse wrote: »
    Are you an EA and is this an attempt to stoke up confidence in the market?

    I sware. I almost pulled my sold sign out of the ground today as another person paid the asking price for a house I had offered 95% on.
  • besonders1
    besonders1 Posts: 582 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    I must admit I have seen a few homes which seem to be sold but these are not First Time Buyer properties, so I assume that its someone who is already on the ladder who is lucky enough to be eligible for credit and really needs a bigger house. However in this market and lack of mortgages I can see the amount of investors or people who have STR'd buying what they think are "bargain" houses drying up.
  • treliac
    treliac Posts: 4,524 Forumite
    besonders1 wrote: »
    I can see the amount of investors or people who have STR'd buying what they think are "bargain" houses drying up.

    They'll be kicking themselves this time next year then!
  • mp2
    mp2 Posts: 80 Forumite
    davidb881 wrote: »
    Back to the point.
    If people could get a mortgage they would buy a house too. House prices are declining because of this alone.

    this is the whole point about house price falls. people cant borrow so prices will continue to fall.
    when you talk about a reversal, a reversal to what exactly? over inflated house prices?

    the only way house prices can ever get back to previous levels in the near future is if banks start to do reckless lending again.
    that simply wont happen. the whole world has learnt the lesson.
  • davidb881
    davidb881 Posts: 37 Forumite
    mp2 wrote: »
    this is the whole point about house price falls. people cant borrow so prices will continue to fall.
    when you talk about a reversal, a reversal to what exactly? over inflated house prices?

    the only way house prices can ever get back to previous levels in the near future is if banks start to do reckless lending again.
    that simply wont happen. the whole world has learnt the lesson.

    Reckless with there lending? This is how it will be for generations... for ever more. When I was a kid my dad paid cash for everything the only debt he had was a mortgage. Now that’s responsible... Are we going to go back to that? LOL

    As a country we stopped making things so we could make money, shifting money. It can not stop.

    Our whole world is built around it... Why do you think our government is going loco, lending money? Our economy can not function without debt.
  • treliac
    treliac Posts: 4,524 Forumite
    davidb881 wrote: »
    Our economy can not function without debt.

    It's what's almost stopped our economy functioning.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    At the moment, cash buyers are finding their savings aren't generating an income and a lot decided "s0d it, we'll buy a house then, save all this rent money".

    But it's a bulltrap.

    When the market runs out of these cash buyers (soon) ... what then?
  • mp2
    mp2 Posts: 80 Forumite
    davidb881 wrote: »
    Reckless with there lending? This is how it will be for generations... for ever more. When I was a kid my dad paid cash for everything the only debt he had was a mortgage. Now that’s responsible... Are we going to go back to that? LOL

    As a country we stopped making things so we could make money, shifting money. It can not stop.

    Our whole world is built around it... Why do you think our government is going loco, lending money? Our economy can not function without debt.

    no, it doesnt have to be no lending, just normal lending. normal lending = normal house prices.

    if the average person wanted to borrow £50,000 for a house today banks would be happy to lend. if the average person wants to borrow £200,000 for a house banks are reluctant to lend.

    do you see what the variable is here? its not whether banks will lend but how much.

    the how much part is affected by either earnings or house prices. were not earning a whole lot more as a nation, the only thing that must happen is that prices must come down. to "normal" levels. ie 3.5 times earnings.
  • davidb881
    davidb881 Posts: 37 Forumite
    treliac wrote: »
    It's what's almost stopped our economy functioning.

    No. a few just got greedy. They will be weeded out and then the machine will roll again. Perhaps with a little more control, well for a while anyway.
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