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Debate House Prices


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UK house prices down 23 percent in real terms.

24567

Comments

  • the_ash_and_the_oak
    the_ash_and_the_oak Posts: 1,636 Forumite
    chucky wrote: »
    ahhh AD come on you're softening up - i thought it was affordability to buy a house that was stopping people buying not sentiment ;)

    Don't think sentiment has really been affected much throughout the whole thing imo!
    Prefer girls to money
  • Dithering_Dad
    Dithering_Dad Posts: 4,554 Forumite
    Mortgage-free Glee!
    the_ash_and_the_oak wrote: »
    Don't think sentiment has really been affected much throughout the whole thing imo!

    Totally agree, a large percentage of the UK population still has a mania for property that even such a steep crash as this one hasn't dented it.
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Dithering_Dad wrote: »
    Totally agree, a large percentage of the UK population still has a mania for property that even such a steep crash as this one hasn't dented it.

    I don't think its even that most people only take a passing interest in house prices
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ad9898 wrote: »
    A nice graph as well, the author feels in inflation adjusted terms we are back to Oct 2003.

    house-prices-corrected-for-.gif

    http://ukhousebubble.blogspot.com/2009/04/uk-house-prices-down-23-percent-in-real.html

    I hope you will remind us of this when we are on -5% deflation at the end of the year
    icon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Chris2685
    Chris2685 Posts: 1,212 Forumite
    mitchaa wrote: »
    Oh, when are the Halifax figures due, anyone know??
    I thought they would have been out today, but probably next week some time now.
  • stephen163
    stephen163 Posts: 1,302 Forumite
    Can someone give a good reason why inflation adjusted figures ARE NOT used? Call me stupid, but I always thought inflation adjustment is absolutely necessary with things like this. Anyone?
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    stephen163 wrote: »
    Can someone give a good reason why inflation adjusted figures ARE NOT used? Call me stupid, but I always thought inflation adjustment is absolutely necessary with things like this. Anyone?

    Because it upsets a significant proportion of people who wake up in the night in a cold sweat, over anxiety that owning property might not be some kind of one way bet golden goose that will outperform the stock market by 3000% over a 10 year period.

    Some of whom seem to spend half their lives here.
  • kennyboy66_2
    kennyboy66_2 Posts: 2,598 Forumite
    stephen163 wrote: »
    Can someone give a good reason why inflation adjusted figures ARE NOT used? Call me stupid, but I always thought inflation adjustment is absolutely necessary with things like this. Anyone?

    They should be - however which measure of inflation to use would be one question.

    In most other crashes, inflation has masked real declines in house prices.

    The interesting thing is that many on here were explicitly warning of 50-70% nominal falls.
    Now they are talking about real falls.
    The real doomsters are then saying that falls are even higher because of the fall in sterling.
    The complete nutters will probably go further by measuring houses against gold, oil, or bananas - anything that can be posted as a graph that looks a bit like Mount Everest.
    US housing: it's not a bubble

     Moneyweek, December 2005
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    kennyboy66 wrote: »
    The real doomsters are then saying that falls are even higher because of the fall in sterling.
    t.

    The irony is that can only be positive for the market as it makes it cheaper for people to purchase from abroad icon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    it also effects rising house prices as well
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