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

zappahey

skap7309 wrote: »

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

This suggests that you don't actually understand what "demand" means in the context of supply and demand.

Demand does not equal desire, it is a combination of the desire to buy and the ability to pay, so if ability to borrow is reduced then demand is reduced.

Ultimately, prices are affected solely by supply and demand.

Pobby

How much wage inflation has there been over the last decade? From where I am sitting 2 to 3 per cent per annum would be very good. My wife, as I recall, has had just 1% in the last couple of years.

StevieJ

zappahey wrote: »

This suggests that you don't actually understand what "demand" means in the context of supply and demand.

Demand does not equal desire, it is a combination of the desire to buy and the ability to pay, so if ability to borrow is reduced then demand is reduced.

.

I guess they call this effective demand

purch

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

I call it NEED and GREED !!! :eek:

Ultimately, prices are affected solely by supply and demand

Yes, you are perfectly correct in that, but as you know and have pointed out, the Supply/Demand dynamic in respect to House prices is far more complex than is often considered when it is being 'bandied' about in discussions on the subject.

Thrugelmir

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.

Not sure that this describes the average FTB..... who probably get a minimal pay rise this year (if any), is getting a poor return on their savings and is quite possibly worried about their job security.

An enormous amount of wealth has evapourated with the fall in both share markets and property prices. Not many people are cash rich.... as cash has never generated a long term return.

Bluebirdnick

Thrugelmir wrote: »

Not sure that this describes the average FTB..... who probably get a minimal pay rise this year (if any), is getting a poor return on their savings and is quite possibly worried about their job security.

An enormous amount of wealth has evapourated with the fall in both share markets and property prices. Not many people are cash rich.... as cash has never generated a long term return.

A poor return compared to what? Inflation? Other investments? I'm happy with my 3% savings account for now. It sure beats a -20% house, or even worse in an index tracker.

Agree with the sentiment on cash in teh long-term, but at the moment it's hard to describe its performance as poor.

Thrugelmir

Bluebirdnick wrote: »

A poor return compared to what? Inflation? Other investments? I'm happy with my 3% savings account for now. It sure beats a -20% house, or even worse in an index tracker.

Agree with the sentiment on cash in teh long-term, but at the moment it's hard to describe its performance as poor.

Cash rates are good for fixed term deposits. Short term / instant rates are poor.

skap7309

zappahey wrote: »

This suggests that you don't actually understand what "demand" means in the context of supply and demand.

Demand does not equal desire, it is a combination of the desire to buy and the ability to pay, so if ability to borrow is reduced then demand is reduced.

Ultimately, prices are affected solely by supply and demand.

OK point proven and you are correct, however in simple terms i was referring to the number of houses for sale v. the number of buyers in a position to pursue them.

In a three mile radius of my area (hardly a heavily developed area) there is 350 properties for sale and some have been on for years. This is why we are struggling so much during this downturn - the same can be applied to cars, non essential goods etc. People have the access to easy credit taken away and the whole country grinds to a halt. Either costs and / or prices come down or we are up sh*t creek without a paddle for years, possibly decades to come.

What you can then suggest is supply and demand is everywhere. Name me one person who would not love a Ferrari sat on their drive? In the real world however, very, very few people will ever even get to sit in one.

StevieJ

Bluebirdnick wrote: »

. It sure beats a -20% house, or even worse in an index tracker.

Presumably depends when your money went in, early March for UK and last November for Asia Emerging Markets wouldn't have been a bad injection point.