Halifax +2.6 % MoM

nearlynew

IveSeenTheLight wrote: »

...............
Better to try and get a long term stability and that would mean not such a wild swing above and below the trend line

I agree.

But prices need to come down to sensible levels first and then stabilise.

mewbie_2

IveSeenTheLight wrote: »

Better to try and get a long term stability and that would mean not such a wild swing above and below the trend line

Agreed. However first there is a small matter of punishment for the profligacy. So once the top of that obscene profiteerring has been lopped off, and a certain amount of penance undergone by the ungodly - then I agree it would be nice to return to a stable and normal environment.

As we all know though, any common sense in the market will last about a fortnight.

Dan:_4

nearlynew wrote: »

I agree.

But prices need to come down to sensible levels first and then stabilise.

What are 'sensible levels'?

nearlynew

Dan: wrote: »

What are 'sensible levels'?

There are many measures of affordability as you know Dan. And whichever one you use at the moment tells you that prices are too high.

But I will start the ball rolling by saying sensible equates to average price 4 times average wage.

Dan:_4

nearlynew wrote: »

There are many measures of affordability as you know Dan. And whichever one you use at the moment tells you that prices are too high.

But I will start the ball rolling by saying sensible equates to average price 4 times average wage.

We are not far away from that:

From this months Halifax report:

· The house price to earnings ratio – a key affordability measure - has declined by from a peak of 5.84 in July 2007 to an estimated 4.36 in May 2009. The ratio is now at a level last seen in January 2003. The long-term average is 4.0.

nearlynew

Dan: wrote: »

We are not far away from that:

From this months Halifax report:

· The house price to earnings ratio – a key affordability measure - has declined by from a peak of 5.84 in July 2007 to an estimated 4.36 in May 2009. The ratio is now at a level last seen in January 2003. The long-term average is 4.0.

OK

So what is the current average wage and average house price?

mbga9pgf

Yeah, slight problem there dan, Halifaxes figures are F*cked. They reckon the average salary is over 36K. In reality, its more like 24K.

Lets not get into this again.

Dan:_4

nearlynew wrote: »

OK

So what is the current average wage and average house price?

I can't be arsed to research the average wage, but average house prices are in my sig - take your pick.

mewbie_2

Dan: wrote: »

I can't be arsed to research the average wage, but average house prices are in my sig - take your pick.

Dan - I have sigs switched off. Is it worth me logging off, so I can come back as a guest in order to review your signature? Or shall I not bother? Please bear in mind I will be disappointed if you encourage me to go to that effort, and the figures are not really worth looking at.

nearlynew

Dan: wrote: »

I can't be arsed to research the average wage, but average house prices are in my sig - take your pick.

Why?

Would it not back up your argument?