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Debate House Prices


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At what figure do YOU think the average house price will hit rock bottom ?

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Comments

  • Kev09
    Kev09 Posts: 152 Forumite
    Were talking affordability, not valuations.

    Property programmes do not influence you buying if you do not have the funds or the means to buy. That made me laugh :D

    Top gear influences me to buy a high end 80k sports car, don't mean I can!

    Also, can you please explain how incomes and prices have no relation to each other. I simply cannot get my head around it, yet people keep saying it. So far people have just said people are earning far more than they actually are!

    I said that Incomes are related to the ability to gain credit and the ability to gain credit is related to demand which in turn helps dicate house prices.

    Do not make me start dusting down my economics textbooks!
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Kev09 wrote: »
    I said that Incomes are related to the ability to gain credit and the ability to gain credit is related to demand which in turn helps dicate house prices.

    Do not make me start dusting down my economics textbooks!

    Don't agree that the ability to gain credit is related to demand.

    Get yer duster :p
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    bluey890 wrote: »
    In the meantime BTL landlords have a good cashflow, and are saving a fair amount (probably more than renters), so might be in a better position to buy.

    COUGH!!

    They are seeing their investments fall!!! Good cashflow?! Only the other day we had figures out saying a 3rd of repo's are BTL's.

    Remmeber, a 3rd of properties are not BTL's, so to have a 3rd of repo's as BTL's is pretty big.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    bluey890 wrote: »
    So demand is only being held back by access to credit. Hence when credit conditions pick up, there's going to be lots of people looking to buy a home.

    Maybe, but, and it's a big but, the credit will not be back for maybe a decade or more to support 70,000 + approvals at today's prices, those prices/approvals have been backed since 2001 by the RMBS, which is widely acknowledged to be closed.

    It's a bit like having a money tree at the bottom of your garden, while it's there, money can be spent with no thought of the cost of items, however, one day you wake up to find someone chopped it down in the night, your money/wealth to support your lifestyle has gone.

    This is what has happened to the mortgage market hence the very low approvals, these will only rise as prices fall (which is exactly what is happening).
  • Kev09
    Kev09 Posts: 152 Forumite
    Don't agree that the ability to gain credit is related to demand.

    Get yer duster :p

    The ability of credit is the KEY factor in demand for houses. There is very poor access to credit just now hence prices are falling, when we had a housing boom there was lots of credit about lots of demand i.e.we have relatively fixed supply so the prices went up. Supply and demand!
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Oh in that sense, yer, I agree.

    Thought you meant in a normal market I wouldn't be able to get credit unless there was demand from others for credit.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    Kev09 wrote: »
    The ability of credit is the KEY factor in demand for houses. There is very poor access to credit just now hence prices are falling, when we had a housing boom there was lots of credit about lots of demand i.e.we have relatively fixed supply so the prices went up. Supply and demand!

    My point is the credit to support supply and demand at these levels has gone, and it won't be back for many years, see my previous post, hence there is no supply and demand.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    There is no such thing as an average national salary as there isnt an average house either.

    too right but it doesn't stop nutters producing graphs with them on them.
    at least they can be pretty.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 18 June 2009 at 10:07PM
    334.gif

    would i be harsh or wrong in asking if all the quintiles can/should own their own home - i'm talking affordability here not their right to own
    If you believe the average working family has an income of 40-41k can you please back this up with facts? There are plenty of websites detailing averages wages.

    household salary of mortgage owners is somewhere around or is this figure.
    i'm sure Thruglmeir posted this somewhere. hence my question above.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 18 June 2009 at 10:10PM
    chucky wrote: »
    would i be harsh or wrong in asking if all the quintiles can/should own their own home - i'm talking affordability here not their right to own



    household salary of mortgage owners is somewhere around or is this figure.
    i'm sure Thruglmeir posted this somewhere. hence my question above.

    But were not just talking mortgage owners.

    We are talking all UK families. And the mortgage one probably includes self certs. Hardly accurate data.

    I have the feeling I have the bulls stumped on this one :p

    Might be time to get my other doodle out :D
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