Nationwide - up 0.9% MoM

Time2Go_25

As I've said before nobody knows what is going to happen with house prices, except that next month they will either fall, rise or be the same and that will happen for every month after that.

I imagine good quality property in good areas will fall less and start to rise sooner.

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StevieJ wrote: »

Rubbish, you are an addict :cool:

:rotfl:,well I may pop in, to join forces with the bulls:D, no in all seriousness, I am of the opinion that a stable housing market, rising with normal inflation is a good thing, it keeps everyone happy, and FTB'rs wouldn't be at a disadvantage just because they were born too late, and people who had already bought would feel there wealth gently increasing. Boom and busts are good for nobody, although unless some regulation is bought forth, it unfortunately will happen again.

Graham_Devon

Really2 wrote: »

Miss conception at the mo.
Mortgage rates are high compared to BOE rate.

I would buy when rates start to ease a bit or long term fix now.

Mortgage availability will improve in the future not decrease.

To the part in bold. And they always will be when you are starting out on one.

Many thousands / millions of people are missing out on fixing at these low rates, simply because they cannot afford to buy now, because house prices are too high, or they have debts to service.

When these people are ready to buy, interest rates should be around 5-8% again, making it ultimately harder to buy.

Really2

Graham_Devon wrote: »

One thing, which I hope most of the population realises, is actually, if your on a tracker at the moment, you have never had it better, and possibly will never have so much disposable cash again.

No mate on a tracker this low I will never be paying so much off my mortgage again

Dan:_4

Graham_Devon wrote: »

Yer, I'm not sure. See what your saying. But ultimately, base rates can only go one way now, which will mean mortgages become harder and harder to get.

When interest rates have never been so low, I really would hope people could get on with buying, otherwise we have no chance in this country!!

I don't see interest rate increases making morgages harder to get. I think people will be more inclined to buy now, while they can secure a low rate deal then wait for the BoE to incraese rates.

For most people the only question is "Would I rather pay £600 a month or £300 a month for the next 5 years?"

Really2

Graham_Devon wrote: »

To the part in bold. And they always will be when you are starting out on one.

Many thousands / millions of people are missing out on fixing at these low rates, simply because they cannot afford to buy now, because house prices are too high, or they have debts to service.

When these people are ready to buy, interest rates should be around 5-8% again, making it ultimately harder to buy.

Incorrect 2 year fix used to be (pre credit crunch) very close to 3 month LIBOR / BOE base rate.

Graham the bold bit is untrue.
Affordability is not worked out on the current IR rate so sorry I think you have been beliving to many HPCers on that one.

Graham_Devon

Dan: wrote: »

I don't see interest rate increases making morgages harder to get. I think people will be more inclined to buy now, while they can secure a low rate deal then rate for the BoE to incraese rates.

For most people the only question is "Would I rather pay £600 a month or £300 a month for the next 5 years?"

£300. Obviously.

But they low mortgage approvals show that although plenty of people would love to simply carry out your simple theory, they can't.

So it makes no difference. It might be there, they might be able in theory to have low payments now. But if they can't afford the house in the first place, those low payments are next to worthless.

If someone says to you you could have a brand new Aston Martin for £150 per month, you'd probably jump at the chance. Until they say you must be earning 60k a year and put down a £30,000 deposit.

People could afford the £150 per month, but they wouldnt meet the other criteria. Which is where were at with houses right now.

They may reduce the astons price by 50%, but then say, oh, you need £600 a month now. Same people still wouldnt be able to buy.

Dan:_4

Graham_Devon wrote: »

Many thousands / millions of people are missing out on fixing at these low rates, simply because they cannot afford to buy now, because house prices are too high, or they have debts to service.

When these people are ready to buy, interest rates should be around 5-8% again, making it ultimately harder to buy.

But many thousands/millions people can buy now. Remember, not everyone can buy a house

Dan:_4

Graham_Devon wrote: »

£300. Obviously.

But they low mortgage approvals show that although plenty of people would love to simply carry out your simple theory, they can't.

So it makes no difference. It might be there, they might be able in theory to have low payments now. But if they can't afford the house in the first place, those low payments are next to worthless.

You mean 'you' can't afford the house in the first place. Many people can, and indeed will. Mortgage approvals are on the increase as banks start to lend for more freely again.

Sir_Humphrey

London
The rate of annual house price falls in London accelerated in Q1 2009. Prices fell by 18.2% up from 15.1% in Q4 2008. However, the seasonally adjusted quarterly rate of decline remained almost unchanged at 5.3%. London continues to see some of the largest house price falls across the whole of the UK on both an annual and quarterly basis.

Londoners are least optimistic about future house price growth compared with other parts of the UK. Nationwide’s Consumer Confidence Survey shows that in Q1 2009, on average 60% of Londoners thought that prices would continue to fall in the next six months, compared with an average of 52% forthe UK as a whole.

Newham saw the largest annual fall in prices in Q1 2009 at 28%, while nearby Hackney and Islington both saw the smallest annual fall at 4%. Just over a third of London’s sub regions saw falls of 20% or more in Q1 2009, this compares with only one area in Q4 2008. Only one area in London saw any moderation in house price falls in the quarter. Islington saw the rate of price fall moderate to 4% from 9% on Q4 2008.

http://www.nationwide.co.uk/hpi/historical/Q1_2009.pdf