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

tara747

mitchaa wrote: »

Nonsense.

Average salary is £26k pa so you expect average house prices to drop by another £60k down to £90k to fit your criteria?

Average house and average wage should share no links.

All I can say is: :rotfl:

And as for your signature: :rotfl::rotfl:

Graham_Devon

mitchaa wrote: »

Nonsense.

Average salary is £26k pa so you expect average house prices to drop by another £60k down to £90k to fit your criteria?

Average house and average wage should share no links.

Explain?

Local indicators are always going to differ slightly, but nationally is should average out.

Why should there be no link between average wage and average house price? Afterall, its people wages which buys the house. Not fairy money! How do you otherwise expect people to buy homes?

Arcaine

I see no return to rapid house price inflation for many years. Bubbles are never re-blown after they are burst. I think house price falls will ease at the end of this year and then we will have years of stagnation.

mitchaa

Graham_Devon wrote: »

Explain?

Local indicators are always going to differ slightly, but nationally is should average out.

Why should there be no link between average wage and average house price? Afterall, its people wages which buys the house. Not fairy money! How do you otherwise expect people to buy homes?

We have done this argument to death Graham;)

A singular average salary should not be buying a typical 3bed SD average home. 2 x average salaries should, or at least average household income.

Thrugelmir

mitchaa wrote: »

Nonsense.

Average salary is £26k pa so you expect average house prices to drop by another £60k down to £90k to fit your criteria?

Average house and average wage should share no links.

Real average salary is a lot lower once top earners are removed ( ie above 40k) from equation. Average employee for example at RBS earns between £15k to £18k.

In a number of industries - finance being one close to my heart. Salaries have stalled over the past 15 years. In the main as technology has made the job easier :j

mitchaa

tara747 wrote: »

All I can say is: :rotfl:

And as for your signature: :rotfl::rotfl:

Would you like to do battle with facts and figures my dear?

I mean only a fool would argue that black is white:doh:

mitchaa

Thrugelmir wrote: »

Real average salary is a lot lower once top earners are removed ( ie above 40k) from equation. Average employee for example at RBS earns between £15k to £18k.

In a number of industries - finance being one close to my heart. Salaries have stalled over the past 15 years. In the main as technology has made the job easier :j

Great, it should be 3.5 x £18k then

So £63k all round then? I'll have 5, maybe 6, if i stretch, can i buy 7

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mitchaa wrote: »

Average house and average wage should share no links.

Interesting, how do you come to this conclusion ? It is wages that purchase houses, at the moment they are 6x average, down form 8x average, still to high, and 'joint' issue really doesn't count.

Nobody should base a 25 year loan on 2 people working avoiding illness, accident, pregnancy, unemployment, divorce, death, the chances of avoiding these issues is very low over this period, and again you can't use wage inflation to float away your debt like the 70's and 80's, wage inflation on that scale no longer exists. In fact I believe the average wage is reducing at this time.

So how come the average wage shouldn't afford the average house ?

Thrugelmir

Pee wrote: »

I hope I'm wrong, but I don't see house prices falling any further. Shame as I would like to buy.

Come and join the bear club..... we may be able to reassure you that as a potential buyer all is not lost.......

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mitchaa wrote: »

A singular average salary should not be buying a typical 3bed SD average home. 2 x average salaries should, or at least average household income.

Absolutely disagree, and for what its worth, so does history.