Bad news: house prices are rising

Dan:_4

Pobby wrote: »

Well yes, I did post this, and that over a period of time is true. However I was being a bit tongue in cheek also. I still feel that there is a long way to go before we reach bottom. I often have asked the question, why, between 1998 and 2007 had my house gone up by 400%? Yes crazy isn`t it. There ya go. Not one person can give me a decent explanation, not one person.

So, as wrong as I might be and I don`t mind admitting that is often the case, I am certainly not convinced we are anywhere near the bottom.

400% does seem a lot :eek:

ukcarper

my house went up 4.5x between 1985 & 2007 so 4x since 1998 does sound a lot

Pobby

Yes it does. We down sized in a big way and bought a house that was an ex rental. I went in with a loony offer, the seller had a new boyfriend and was living up country. Needed new windows and stuff.

Wookster

Really2 wrote: »

Thanks:)

I wanted to ask a question today to a "resident bear" but never really got the opportunity.

I am feeling things may have shifted a bit now, a bit more positive (hard to describe really)

Do you think we could start coming out of the other side soon (well next year) and that we have now most likely gone through the worst in terms of drops and financial difficulties (obviously job losses will still rise even after we are "officially" out of recession.

I just wanted to find out is sentiment starting to change a bit.

I'm sure I qualify as an uber bear.

Yes you are right - there seems to be a fair bit of positivity around at the moment. I've noticed a few things

- More positivity in the media, typically the BBC (but then they were never very pessimistic about the state of affairs of the global economy)
- In my car hunt (which is today over, ending in a gorgeous gun metal Golf GT) I've seen that things move fairly quickly and the dealer I bought it from have had a remarkably busy month (March)
- My partner who is an interior designer running a significant project has said that all the tradesmen and sub contractors are mad busy

Its all quite surprising and I think it the fundamentals don't add up. I think what's fuelling it is a drop in prices: cars are cheaper so people (like me) who have been putting off purchases are thinking now's a good time to buy; construction is slow, there's more competition for prices so tradesmen work better and quote more competitively (cheaper).

As with any recession, things have never been so good for the unaffected and things have never been so bad for the affected. Unemployment is still rising (and shows no sign of slowing), job prospects are bleak, cost of essentials (food and fuel) are rising at not insignificant rates and painful cuts to public spending & more painful tax rises are not that far away. For the unaffected its never been a better time to make significant purchases other than property (which imo still has a long way to drop). I also think the "herding" instinct which causes people to tighten their belts in the face of bad news & widespread hardship has evaporated now.

Recessions have the effect of widening the gap between the rich and the poor and that is an awful thing.

islandannie

Look at Kingswells in Aberdeen.

I don`t like to upset you,but the only way is up.

Wookster

islandannie wrote: »

Look at Kingswells in Aberdeen.

I don`t like to upset you,but the only way is up.

The only way is to ignore muppets like you. Another for the ignore list!

Tally ho!

scousethife

Rochdale_Pioneers wrote: »

Isn't it obvious what the difference is? The gap between supply and demand has increased. More people need houses - especially small and family sized houses, and fewer houses are available as builders have failed to keep up with demand and have occupied themselves building city apartments for the BTL market.

Theres well over 1 million houses on rightmove alone.

Thats quite a supply if you ask me, but they havent been bought, some for well over a year, I wonder why?

Really2

Wookster wrote: »

I'm sure I qualify as an uber bear.

Yes you are right - there seems to be a fair bit of positivity around at the moment. I've noticed a few things

- More positivity in the media, typically the BBC (but then they were never very pessimistic about the state of affairs of the global economy)
- In my car hunt (which is today over, ending in a gorgeous gun metal Golf GT) I've seen that things move fairly quickly and the dealer I bought it from have had a remarkably busy month (March)
- My partner who is an interior designer running a significant project has said that all the tradesmen and sub contractors are mad busy

Its all quite surprising and I think it the fundamentals don't add up. I think what's fuelling it is a drop in prices: cars are cheaper so people (like me) who have been putting off purchases are thinking now's a good time to buy; construction is slow, there's more competition for prices so tradesmen work better and quote more competitively (cheaper).

As with any recession, things have never been so good for the unaffected and things have never been so bad for the affected. Unemployment is still rising (and shows no sign of slowing), job prospects are bleak, cost of essentials (food and fuel) are rising at not insignificant rates and painful cuts to public spending & more painful tax rises are not that far away. For the unaffected its never been a better time to make significant purchases other than property (which imo still has a long way to drop). I also think the "herding" instinct which causes people to tighten their belts in the face of bad news & widespread hardship has evaporated now.

Recessions have the effect of widening the gap between the rich and the poor and that is an awful thing.

Thanks Wookster a surprising but very real response. Enjoy the new car:)

cepheus

True this is bad news but hopefully just a blip. Lower house prices increase prosperity and vice versa, if you could buy a house at half the price surely this make you richer? It's what you can afford to buy not how much money you have that counts. The only people who benefit from higher house prices are those who trade them, move out of ownership, downsize, or move to a cheaper location. Few do any.

Despite owning a small house I am waiting of house prices dropping so I can move into a larger, quieter detached house. Hopefully detached houses will half in price and hit 150k in the SouthEast within the next 3 years.

Wookster

Really2 wrote: »

Thanks Wookster a surprising but very real response. Enjoy the new car:)

Why is that surprising?

The car is gorgeous! My first run got 57.6mpg (at 70 with cruise control on) - how good is that?