House prices fall in June, but still first-time buyers struggle

skap7309

ad9898 wrote: »

They make out that FTB'rs are 'struggling' when they don't ask any, they ask EA's, they ask a Rightmove director (all the usual suspects). Ask me, I'm not cash strapped, I'm not struggling, I'm happy, waiting out the crash to pick up a property at the bottom of the market, I would say the majority of FTB'rs are doing the same.

Yep. Good post ad.

julieq

Bad news, because if that's true you'll be in competition with a lot of other not cash strapped not struggling happy people for your dream home.

Mexas

Its going to be a long Summer and Winter.

The Spring blip is about to come to an end.

ad9898_3

julieq wrote: »

Bad news, because if that's true you'll be in competition with a lot of other not cash strapped not struggling happy people for your dream home.

Maybe so, but not all FTB'rs are going for the same type of house, I'm going for a 2 bed detached bungalow, or a 3 bed detached house, they are not your typical FTB'r house, there is also loads of supply, in my area at least, of all types of housing, and to be honest it seems the case accross huge swathes of the country.

The IR hikes that are slowly leaking into the market, along with increasing unemployment is going to start the next leg down over the next few months, and the dead cat bounce is coming to an end (SSTC's falling through and drying up).

tara747

StevieJ wrote: »

and fixed rates are increasing, every silver lining has a cloud

Er, what? That is another silver lining for FTBs. Increasing IRs will make house prices fall even more! :beer: :j :T

I have said it before and I will say it again. I'd rather buy a cheap house at a high IR than an expensive house at a low IR.

wolvoman

ad9898 wrote: »

mmmm well I'm going to be controversial here, I don't believe 'poor' people are ever likely to be homeowners, or ever were.

Spot on.

So why is there this ongoing belief that average house prices should match average incomes, if the average income does not represent the average housebuyer?

StevieJ

wolvoman wrote: »

Spot on.

So why is there this ongoing belief that average house prices should match average incomes, if the average income does not represent the average housebuyer?

Very true, it should be average wage of potential housebuyers, I am not sure this would include a single 16 year old working in Mcdonalds, having said that if the 70% brigade have their way, why not

skap7309

zappahey wrote: »

Well, if it's not supply and demand, what does have an impact?

The availability of credit - cue the reason for the economic downturn??? :rolleyes:

Pobby

ad9898 wrote: »

Demand will slide once the dead cat bounce finally dies and hits the media, don't forget some people only read the headlines, and they have been fed a right load of bollox over the last 2-3 months. As for the poor and middle classes, mmmm well I'm going to be controversial here, I don't believe 'poor' people are ever likely to be homeowners, or ever were.

Ad I usually agree with your posts. What`s your definition of poor? Where I live you could have bought a good sized 2 bed terrace in 1998 for £35ish k. One person on £10k a year would have fitted very nicely at 3.5x income. I live in an area where the average price is a little below the national average. As I recall, even a terrace in the south east was perhaps £50k ish in an area above the national average.

My point is that low wage earners, at most points over the last 30 to 40 years could have bought. As for a couple, totally a cinch.

ad9898_3

Pobby wrote: »

Ad I usually agree with your posts. What`s your definition of poor? Where I live you could have bought a good sized 2 bed terrace in 1998 for £35ish k. One person on £10k a year would have fitted very nicely at 3.5x income. I live in an area where the average price is a little below the national average. As I recall, even a terrace in the south east was perhaps £50k ish in an area above the national average.

My point is that low wage earners, at most points over the last 30 to 40 years could have bought. As for a couple, totally a cinch.

I suppose i was being a bit generic with my quote of 'poor', poor to me are the career benefit claimants, or people on low paid, part time work. As far as the 10k wage issue goes, I agree with that absolutely.