Nationwide "Real" House Price Index rose 1.6% in June

chucky

HousingBear wrote: »

It is the current fall in housing costs that is dragging RPI down. However CPI is still above the target of 2%. Also, CPI replaced RPI as the preferred Govt measure of inflation a while back. I used RPI for the 70s because that was what the govt used then.

In the 70's, both prices and wages were going up very rapidly. This time round, I know of people who have had large wage cuts to keep their jobs. These pay cuts directly affect affordability, so prices are likely to continue to fall (after we get over this small blip).

i struggle with the inflation adjusted house prices argument - i understand it and also think it's valid and i don't put it down if that's what people look at.

i just find it very similar to the seasonal adjustment of house prices.

unfortunately, it's used too freely by people who don't appreciate what they mean fully to get a point across on these forums (that wasn't a dig at yourself BTW)

HousingBear

chucky wrote: »

i struggle with the inflation adjusted house prices argument - i understand it and also think it's valid and i don't put it down if that's what people look at.

i just find it very similar to the seasonal adjustment of house prices.

unfortunately, it's used too freely by people who don't appreciate what they mean fully to get a point across on these forums (that wasn't a dig at yourself BTW)

I'm not quite sure the comparison to seasonal adjusting of house prices is quite valid. With seasonal adjusting, the adjustments over a year should sum to zero. So if you adjust upwards in the winter (when prices typically fall), you have to adjust downwards in the spring (when prices typically rise). The idea is to smooth out the ups and downs and provide a more stable YOY picture of price rises or falls.

With inflation, it is a permanent adjustment that affects prices constantly and there is no requirement for it to sum to zero. The cause of inflation is an increase in money supply that devalues the currency already in existence. The symptoms are that prices appear to increase YOY. In fact, the government has a positive inflation target because having a constant low level of inflation can stimulate growth of the economy. Pity it also shafts savers by depreciating their cash.

With inflation and house prices, if my house has gone up by 5% yet during that period inflation is at 25%, then the real value of my house has fallen. It might have increased in nominal terms (it now costs more pounds to buy) but those pounds are worth less as they buy less of everything else.

Hence the price rises of the early 70s are knocked out by the fall in the value of the pound due to inflation.

nearlynew

IveSeenTheLight wrote: »

If you say so :rolleyes:

Back to the question about demand in your area.
What do you think of the fact that you managed to sell your inherited property within at most 6 weeks from being marketed?
how long did it take to sell from going on the market?

The house I referred to in my first post on this forum was already sold when I posted.
I just wanted to see what replies I would get.

There was no marketing because I sold it privately to a landlord mate of mine for 90k (about 25% off "peak value")
It took just over 4 weeks from agreeing the price to completion

I sold a further house in august 2007 - at the peak, to a BTL mug, with an attitude not dissimilar to the ones who post here

IveSeenTheLight

nearlynew wrote: »

The house I referred to in my first post on this forum was already sold when I posted.
I just wanted to see what replies I would get.

There was no marketing because I sold it privately to a landlord mate of mine for 90k (about 25% off "peak value")
It took just over 4 weeks from agreeing the price to completion

I sold a further house in august 2007 - at the peak, to a BTL mug, with an attitude not dissimilar to the ones who post here

Ok........:rolleyes:

http://forums.moneysavingexpert.com/showpost.html?p=21988919&postcount=1

nearlynew wrote: »

First post, but a long-time lurker, so please go easy.

I have inherited a house which has been valued by a few estate agents for 100k and I have put it on the market for 95k. I have had one offer so far after 3 weeks for 90k

Bearing in mind that there is no mortgage on the house and anything I get will be profit (apart from the taxes i will have to pay :mad:) what do you thnk i should do?

I have read lots of stuff about prices falling even further and i have read about prices starting to rise and am just confused about what would be best. My choice seems to be:

1. take the 90k and run
2. keepthe house and rent it out
3. keep the house, leave it empty and hope for a better price

help please

Hope you paid your CGT taxes

IveSeenTheLight

nearlynew wrote: »

I sold a further house in august 2007 - at the peak

Given you sold a property at peak in 2007 and sold the inherited property in the last month to clear your mortgage, does that mean you bought a property after the one you sold at peak in 2007, or did you have yet another property?

Graham_Devon

This desperation is starting to leave a bad taste...

JonnyBravo

IveSeenTheLight wrote: »

Hope you paid your CGT taxes

I'm sure he paid them with the lottery win he also had.... he didn't mention that cos it didn't seem the right time but it's true....... it is...... really..... what do you mean an inconsistent story looks a bit dubious??? Why??? Anyway he's got 5 houses so what does he care cos they're all paid for and everything......

HAMISH_MCTAVISH

Graham_Devon wrote: »

This desperation is starting to leave a bad taste...

Dunno about taste (I'll leave that part to you), but all the bearsh1t is certainly starting to smell....;)

nearlynew

IveSeenTheLight wrote: »

Given you sold a property at peak in 2007 and sold the inherited property in the last month to clear your mortgage, does that mean you bought a property after the one you sold at peak in 2007, or did you have yet another property?

Correct
I am flattered by your interest in my affairs, and, whilst I do not want to go into too much detail I will tell you this..............

I have been a homeowner for over 20 years and during that time I became an accidental landlord of the first house I ever bought and then bought another one to live in.

On moving to my present home in 1997, I rented out the second.
That is the one I sold in 2007.

I am now mortgage free on the property I live in and on the original rented property.

A position which you would like to be in in a few years time.

Maybe your animosity is a result of your envy.
Or maybe you are just confused that someone in my position would want prices to fall?

HAMISH_MCTAVISH

nearlynew wrote: »

Or maybe you are just confused that someone in my position would want prices to fall?

Well, it is absolutely mental for someone with multiple and/or investment property holdings to want prices to fall. You may as well buy shares in the company you work for and then do your best to sabotage it's profit...:rolleyes:

But seeing as how you have such a desire to see prices fall, presumably for the greater good, how about you just go out and find a deserving young couple to sell your spare property to, and flog it to them for £5K.
Afer all, you claim to not care about personal gain, and as we all know, prices are set at the margins....;)

I keep mentioning this option to the bears, but amazingly none have taken me up on it yet...:rotfl: