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

chucky

Graham_Devon wrote: »

But were not just talking mortgage owners.

i know - hence my question. if we look at average salary across the board we have a lower average salary.

if we take the ones that couldn't 'afford' property out of the calculation we get a more realistic average house price.

Graham_Devon

chucky wrote: »

i know - hence my question. if we look at average salary across the board we have a lower average salary.

if we take the ones that couldn't 'afford' property out of the calculation we get a more realistic average house price.

Erm, what?

So we should look at the average salaries of those that can afford property and that's the realistic house price?!

What!?

Talk about spin and picking and choosing.

So if I have got this right, those without mortgages, their salaries, do not count?

chucky

Graham_Devon wrote: »

Erm, what?

So we should look at the average salaries of those that can afford property and that's the realistic house price?!

What!?

Talk about spin and picking and choosing.

that's not exactly what i said, don't be difficult - i asked do you include everyone in calculating an average salary even thought they could never realistically ever afford a property.

if you do you're skewing the numbers and there's not point in comparing an average salary against an average house price.

ad9898_3

chucky wrote: »

if we take the ones that couldn't 'afford' property out of the calculation we get a more realistic average house price.

I don't buy this chucky, many people can't afford now because they have been priced out by the boom, it's not that they didn't earn enough money historically, an example would have been myself.....

In '96 when I first bought, I bought a 2 bed semi, with front and back garden, drive and detached garage, in a nice semi rural area, I was on quite poor wages at the time (well below average salary), yet I bought, on my own, with a 3.5 times salary mortgage, 10% deposit........... if this was today and I was on that kind of money, I would be one of the people who you claim 'couldn't afford' a house.

The boom as skewed the market out of all recognition, to the point that in 2007, you would have had to be a Dr, lawyer etc..... to afford that very same house.

chucky

ad9898 wrote: »

I don't buy this chucky, many people can't afford now because they have been priced out by the boom, it's not that they didn't earn enough money historically

i agree with this but these weren't the type of salary earners i was questioning should they be included. it was those on minimum wage for example or even part timers.
maybe the ones in the lower quintile - you'd get a much more reasonable comparison.

lostinrates

ad9898 wrote: »

The boom as skewed the market out of all recognition, to the point that in 2007, you would have had to be a Dr, lawyer etc..... to afford that very same house.

Friend of DH's: 2 yr qulified at high paying City firm in London: recently bought ex LA two bed council flat, haddeposit. Good income, buying bottom of the ladder but a lot of people are a lot lower down the ladder than that, in law/medecine etc : you can't get much lower on the ladder to jump on.

Graham_Devon

chucky wrote: »

that's not exactly what i said, don't be difficult - i asked do you include everyone in calculating an average salary even thought they could never realistically ever afford a property.

if you do you're skewing the numbers and there's not point in comparing an average salary against an average house price.

I am not confusing the issue.

The issue was Mitcha saying that the average family is NOT average if they are not on around 45k and shouldnt be able to buy a house unless they were.

Also iveseenthelight telling us all that the average house price in relation to average earnings is actually nearly £170k as the average family will have 20k stashed away and be bringing in 45k a year.

All total rubbish.

No one is talking about minimum wages.

chucky

Graham_Devon wrote: »

I am not confusing the issue.

No one is talking about minimum wages.

no but i am - i was asking the question linked to your chart and the comparison of average wage and average house prices.

i thought you of all people would have tried to answer my question Graham

IveSeenTheLight

Graham_Devon wrote: »

but yours, iveseen, well, it's just delusion. It really is. And I don't know why you pedal it when deep down, you must know yourself, the average family is NOT on 45k a year.

I cannot get my head around why you would post such stupid stuff.

Try reading the factual data I provided
http://www.statistics.gov.uk/downloa...08/tab1_7a.xls

I've not made it up, it's facts

Maybe your just not open to believing facts as they are shown?

Full Time Male Mean Average = £35,122
Part Time Female Mean Average = £9,911

£35,122 + £9,911 = £45,033

IveSeenTheLight

Graham_Devon wrote: »

Infact, just to nip this one in the bud...

http://www.statistics.gov.uk/cci/nugget.asp?id=334

No VI, no spin, just raw statistics.

Total family income of all families averages out at less than 30k in 2006/7.

The top fifth of the country have an average of just over 50k.

Yet you are saying the average is 45k!??!?!? You have over egged the figures by over a third.

Look up the difference of Mean Average and Median Average

You are using incomes from a median average, which I can understand to show that most people can afford, however LR house figures are mean average

You cannot compare median average against mean average, you have to do a like for like hence.......

Why the mean average wage figures were used to directly compare against mean house prices :rolleyes: