We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Housing Market "far stronger" than a year ago

1234579

Comments

  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Mountain and molehill spring to mind!

    Don't get too excited about it.

    So what is your new top to bottom forecast? I may need to amend my footer icon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • wolfman
    wolfman Posts: 3,225 Forumite
    IveSeenTheLight wrote: »
    Unemployement - Yes, not a good sign, but the increase in unemployment from now till peak is a fraction of those that will still be working, maybe 3% more :confused: It may have an impact, but will it be so great on house prices. You would say that sales numbers are already low, so what if they dropped 3%

    I think you're under-estimating the effect of unemployment, and its knock on effects.

    - It makes people that do have jobs, less confident in keeping theirs, so they save instead of spend. Therefore you're losing not only the spending power of those that have losts jobs, but in some cases those that still have them.

    - Unemployment reflects a low GDP. Less is being produced, sold, and bought. A low GDP can affect export confidence, which is a further knock on effect.

    - It also means more people going "on the dole", which is a cost to the government and tax payer. In fact instead of being self sufficient, they are the complete opposite, so it's not only a loss in GDP but an expense too.

    - It can cause "under employment" where by people take on jobs they are not suited to, and have to be competitive so may do so at a lower than previous wage/salary. This can cause a slower recovery.

    - It can mean more people failing to pay mortgages, debts, loans etc... which comes at a costs to banks and financial institutions. Especially if bankruptcy is claimed. This lowers the banks confidence, and is why mortgage rates are currently quite high in relation to the base rate, and a large (20%+) first payment is required for the best deals.
    "Boonowa tweepi, ha, ha."
  • MrDT
    MrDT Posts: 951 Forumite
    wolfman wrote: »
    I think you're under-estimating the effect of unemployment, and its knock on effects.

    - It makes people that do have jobs, less confident in keeping theirs, so they save instead of spend. Therefore you're losing not only the spending power of those that have losts jobs, but in some cases those that still have them.

    For once I remembered to refresh the page before posting, just incase someone had already said what I was going to say. Thanks for saving me the bother ;)
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    It also means a lot of the forgotten self employed struggling.

    Something I think, if were going to talk about these things on MSE, we need to remember, not push to the side like the government does.
  • Snooze
    Snooze Posts: 2,041 Forumite
    1,000 Posts Combo Breaker
    Small observation.. but has anyone else noticed how chucky, dan: and really2 have completely disappeared off the radar since the arrival of HAMISH_MCTAVISH ? :confused:

    This is one of several 'busy' threads about house prices recently and none of them have had any input from the above 3 but plenty from Mr. McTavish.

    sock_puppet.jpg

    :confused:

    Rob
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Snooze wrote: »
    Small observation.. but has anyone else noticed how chucky, dan: and really2 have completely disappeared off the radar since the arrival of HAMISH_MCTAVISH ? :confused:

    This is one of several 'busy' threads about house prices recently and none of them have had any input from the above 3 but plenty from Mr. McTavish.

    :confused:

    Rob

    wrong again Robert - i'm here.

    i'm laughing that some people actually think that the housing market isn't in a better position than it was a year ago.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    chucky wrote: »
    wrong again Robert - i'm here.

    i'm laughing that some people actually think that the housing market isn't in a better position than it was a year ago.

    :rotfl::rotfl::rotfl::rotfl:

    Not a good week for bears all around, really.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    chucky wrote: »
    wrong again Robert - i'm here.

    i'm laughing that some people actually think that the housing market isn't in a better position than it was a year ago.

    Can you name me one person on this thread who has said it isnt?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Can you name me one person on this thread who has said it isnt?

    i'm still laughing at this - you don't have a scooby do you...
    Graham_Devon wrote: »
    I'm wagering 50-70% from peak.

    The BOE has yet to put interest rates up, and boy are they gonna go up
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    chucky wrote: »
    wrong again Robert - i'm here.

    i'm laughing that some people actually think that the housing market isn't in a better position than it was a year ago.

    and how much of the market momentum was down to low interest rates?

    All those BTL buyers who said bank deposit accounts were yielding too little.

    Now we have Newcastle BS offering 5% in an ISA. Thats over 8% gross for a high rate taxpayer or 6.875% gross for a basic rate taxpayer.

    So a BTL investor has to yield a net 6.875% after costs to match the rate.

    Which would you prefer? A non paying tent , a void rental period or hassle free investment?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.3K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture