Nationwide +1.3 (-6.2 YoY)

Dan:_4

Where is Carol today?

Graham_Devon

Really2 wrote: »

That does not mean much either as it is hyperthetical, there are people living mortgage free. there are people with £100K deposits

It is just putting personal wealth in an easy to understand format. Much like a companies ballance sheet

Really, we are talking about a report which lists house prices as wealth.

Therefore it's not hyperthetical to talk about that. Is someone "wealthy" because they have a house with 100k equity but are struggling day to day? Not like they can sell the house and take the equity is it....they will need somewhere else to live, so makes sod all difference either way.

chucky

Graham_Devon wrote: »

Yer, what I'm saying is, it doesnt really mean much does it. If you have a 3 bed house, and 2 kids thats worth 100k more than it was 5 years ago, but you are struggling to pay your mortgage of 50k on it and live at the same time, it makes absolutely no difference to you, and I doubt they would class themselves as "wealthy" because each brick is worth £500 therefore it's not all that bad.

what percentage of the population is in that situation? - a small percentage probably.

there is 40% of the UK property that is mortgage free - there net worth is higher, there disposable income is also much higher.

if you class smaller percentages as the norm - it's best you discuss this with yourself... :rolleyes:

Graham_Devon

chucky wrote: »

what percentage of the population is in that situation? - a small percentage probably.

there is 40% of the UK property that is mortgage free - there net worth is higher, there disposable income is also much higher.

if you class smaller percentages as the norm - it's best you discuss this with yourself... :rolleyes:

I'm not classing smaller percentages as higher or anything else in which you wish to tell me I'm saying.

I was simply asking if we pecieve houses, and HPI as wealth.

I personally don't. That's why I bought up the recent poverty report.

poppy10_2

julieq wrote: »

I'm surprised at the level of near capitulation..

Me too. People are so easily spooked. We're not even a third of the way into this house price crash.

ruggedtoast

Nominal property prices are counted as part of a countries wealth, price inflation and the attendant lending goes towards GDP I believe.

The number of property transactions at the moment are very low, and few first time buyers can afford to get on the ladder. So we're looking at wealthier people and those who've some cash who been watching the market for the last year, penting up their demand (people like me to be honest).

The problem the government has is that the more places that come onto the market the more the downward pressure on prices will be unless he can get other areas of the economy moving to follow suit.

A normal fiscal stimulus would be state sponsored construction (as Japan has tried to do for decades) but Brown wont spend on housing as that will push prices down, yet the unemployment engendered by the collapse in construction will also push prices down.

So what can Brown do - keep borrowing and hope for the best.

digipeep

nearlynew wrote: »

Hold your nerve bears. This time next year, average prices will be lower.

Don't believe the hype.

Agreed, in 12 months time the average house price will be around the 130K mark at least another 15% drop.

Dan:_4

digipeep wrote: »

Agreed, in 12 months time the average house price will be around the 130K mark at least another 15% drop.

You lot were saying that 12 months ago? :rotfl:

poppy10_2

Dan: wrote: »

What we thought last December:

http://forums.moneysavingexpert.com/showthread.html?t=1365319&highlight=2009

Oops:

chucky

ruggedtoast wrote: »

Nominal property prices are counted as part of a countries wealth, price inflation and the attendant lending goes towards GDP I believe.

The number of property transactions at the moment are very low, and few first time buyers can afford to get on the ladder. So we're looking at wealthier people and those who've some cash who been watching the market for the last year, penting up their demand (people like me to be honest).

this is something that people on here struggle with. it may not be right but it's reality.

average salary doesn't equal to buying a home.

from this months stats:

the average Nationwide House price is £158,871 minus a 10% deposit = £142,983 so the average income for a homeowner is £47,661.

if we use a 25% deposit the average income is £39,717...

this means that there will be a minimum average salary that people will be able to buy a home.

was the low point of £147,776 in February the bottom for house prices?

prices have increased 7.5% since then...