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Debate House Prices
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Lack of properties props up house valuations
halight
Posts: 3,629 Forumite
:jYou can have everything you wont in lfe, If you only help enough other people to get what they wont.:j
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Law of supply and demand?This is an open forum, anyone can post and I just did !0
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Law of supply and demand?
Exactly.
the article infers that house prices have been propped up by lack of supply and that there could be house drops as sellers confidence returns and more property is added to the market.
Of course if house prices start to drop again, the sellers confidence would drop and as such we could see less properties being put on the market again.
For me, this is a recipe for house price stagnation.
House prices are propped up for now with small increases each month.
As supply increases, house prices will result in small drops each month.
Supply will then dry up resulting in cometition again for the properties that are marketed resulting in small rises again.
We could be in for a period of stagnation and we could be seeing the bottom where this stagnation happens.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Law of supply and demand?
Well it's pretty predictable that as the price falls, supply will fall. Any economist can tell you that much!
It's what happens next that is interesting - will supply be forced on to the market by reposession etc or will market activity die off for a while? Time will tell kids.
BTW OP - your link is dead.0 -
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Supply will be forced onto the market pretty soon, starting this autumn/winter, though it will always be lower as people are not looking to make money in this market.
Interest rates, reposessions, people who can no longer wait etc will all force stuff onto the market and these kind of desperation sales will also force prices down.0 -
IveSeenTheLight wrote: »Works for me.
Does for me now too.
A conspiracy obviously. Probably set up by the people who have been hiding Michael Jackson since 'Off the Wall' came out.0 -
Graham_Devon wrote: »Supply will be forced onto the market pretty soon, starting this autumn/winter, though it will always be lower as people are not looking to make money in this market.
Interest rates, reposessions, people who can no longer wait etc will all force stuff onto the market and these kind of desperation sales will also force prices down.
Accepted, there will always be forced sales.
However with estimated reposessions for 2009 being pessimistic at 75,000, expected to be downrated in the next report (http://www.cml.org.uk/cml/media/press/2262) and sales still circa 35,000 per month, these reposessions at worst case only cater for two months of sales, it remains to be seen if this level of forced slaes will put a great downward push on prices.
It certainly hasn't so far this year with reposessions up from 8,500 in Q1 08 to 12,800 in Q1 09.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I don't envisage forced sales being massive just yet to be honest.
Interest rates are low, & I don't think they'll leap back up (yet).
There is political pressure to avoid repossessions where possible.
Banks are already sitting on numerous repossessed/void properties.
With seperations/divorces, the low rates may mean that one partner can afford (at least in the short term) to stay where they are (possibly providing they can acquire a mortgage).
With a death, surviving relatives may choose to rent out rather than sell.
It is only really those with significant arrears already, with little/no possibility to improve their situation where the forced sales will occur.
I wonder if forced sales won't increase for some time.
I too expect stagnation, possibly until 2010.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Local Anecdote
In March/April/May no new properties came on to the market and all the old dross that had been on the market since for ever went under offer/sold.
Come May/June a rash of new properties appeared at 2007(+) prices. These have not sold and some have already been reduced.
My conclusion - there is pent up demand to move but not 'at all costs' and the 'money illusion' of previous high prices deters sellers from accepting the new market reality.I think....0
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