Number Of People Buying Homes Jumps 29%

davilown

chucky wrote: »

quite an unexpected jump in the number of loans...









this is the most interesting bit - who was it that keeps on saying that First Time Buyers couldn't afford or were staying out of the market?

http://news.sky.com/skynews/Home/Business/Council-of-Mortgage-Lenders-Announces-29-Rise-In-People-Buying-Homes-In-March/Article/200905215281656?lpos=Business_Carousel_Region_4&lid=ARTICLE_15281656_Council_of_Mortgage_Lenders_Announces_29%25_Rise_In_People_Buying_Homes_In_March

But its still only about 39% of the total mortgages compared to this month two years ago!

chucky

davilown wrote: »

But its still only about 39% of the total sales compared to this month two years ago!

so what is your point - you want easy lending to come back and HPI to start all over again just like 2007 and before?

confused31_2

geoffky wrote: »

can someone tell me where the money is going to come from because 70% of the players in 2007 in the mortgage market dont play anymore and that money has gone,,not coming back...

They dont play anymore because most of them are surviving with the low interest rates, when rates start to go up, that is when you will see house prices fall again, this is just a blip, people may be jumping in now, but there will be more falls, i thinks its just a lot of impatience from people who want to jump in now.

I think if interest rates go up above 3% you will see a glut of properties come on the market at bargain prices, these will be from the people who bought in boom time and will need to get rid has they wont be able to secure any good mortgage deal, as they will have no equity.

Its all about timng.

davilown

chucky wrote: »

so what is your point - you want easy lending to come back and HPI to start all over again just like 2007 and before?

No, I was just stating the obvious.

System

davilown wrote: »

But its still only about 39% of the total sales compared to this month two years ago!

Are people who post stuff like this actually expecting a complete reversal in a one month period, or do they just enjoy stating the utter obvious?

Edit: That's that answered then.

FoxtonsRIP

davilown wrote: »

But its still only about 39% of the total mortgages compared to this month two years ago!

Please don't let the facts get in the way of chucky's provocative and pointless post.

dopester

Bacon on Radio 5... :mad:

He's just been on saying values are determined by supply and demand.

The value of all homes is decided by the prices agreed between one buyer and seller.

If you thought your home was worth £170,000 in 2004, but someone comes along and buys a similar home for £200,000 in 2005, every homeowner on the street sees their homes valued upwards. Every homeowner has been quick to mentally bank that increase in value.... by the price similar homes had sold for.

It works exactly the same way on the way down. One seller decides to sell at £170,000 again, and all homes get revalued downwards. Certainly in the eyes of new buyers and valuers and lenders - the market.

chucky

confused31 wrote: »

...when rates start to go up, that is when you will see house prices fall again, this is just a blip, people may be jumping in now, but there will be more falls, i thinks its just a lot of impatience from people who want to jump in now

it's a regional thing too - there will be still falls but not across the country.

FoxtonsRIP wrote: »

Please don't let the facts get in the way of chucky's provocative and pointless post.

yeah good point - don't let facts get in the way :rotfl:

There was also a steep rise in the number of people buying their first home, with 12,500 first-time buyers taking out a mortgage during the month.

These account for 40% of all loans, the highest proportion since April 2005.

chucky

dopester wrote: »

It works exactly the same way on the way down. One seller decides to sell at £170,000 again, and all homes get revalued downwards. Certainly in the eyes of new buyers and valuers and lenders - the market.

sort of... because sellers can (in the majority of situations) be able to wait to sell.
if they can't wait, they have the options of letting the property or refusing to sell.

i don't think renting or even living with parents can be done for ever - but that's just my opinion.

dopester

chucky wrote: »

sort of... because sellers can (in the majority of situations) be able to wait to sell.
if they can't wait, they have the options of letting the property or refusing to sell.

i don't think renting or even living with parents can be done for ever - but that's just my opinion.

Letting or refusing to sell.

Tell my Chucky. Do they expect their homes to have held value, when the last home in the street sold at £140,000? Then in 2011 another homeowner on the street sells at £120,000 to a new buyer.

It would be very hard for any owner to consider the value of their home to be still worth £200,000 peak value, or even £170,000 don't you think, when next-door sold for £140,000 of £120,000.

When homes are gradually selling for less and less money over time.

Values are determined only by the price an one seller and one buyer decide upon, for one house, and it provides the approximate value for all homes on the street and area.