More supply shortages building up....

Thrugelmir

baileysbattlebus wrote: »

Do you think the housing market has followed the normal definition of supply and demand - to me, it appears to have done the opposite. (Though I could be just being dense here)

Normally you would expect to see less people buying when prices are high - we have had more.

People wanted a house at any price.
Banks were falling over themselves to lend with very small deposits
You could make a quick return on your money.

You would have expected to see more people buying when prices are low. But:

People are not buying because the prices may fall further - you can see that on here.
Deposits have to be much larger
Mortgages are hard to come by
You won't get a quick return on your money.

I suppose though, if you want to sell your house and the price is low enough - you probably will sell it.

So, I suppose my point is that the housing market seems pretty complex as far as supply and demand goes - it's not quite the same as Comet reducing the price of a 50inch plasma to £100.

I don't suppose I've explained myself very - but do you see where I'm coming from.

And if anyone can explain it - could you??

You've made you point well. :beer:

Underlying house price increases throughout the decades is credit availability. This ultimately is the deciding factor. There are periods in history where being able to afford was not enough in itself. You had to save with your local building society and join the queue.

During the years 1999 -2007 "credit" was allowed to balloon upwards due to a lack of regulatory control. BTL, I/o, 125%, self certified, sub prime, equity withdrawl had no controls put over them.

Now we can see the result today. Supply and demand for credit will decide the next move. Subject to changes in regulatory control over credit which will be imposed within coming months.

the_ash_and_the_oak

with prices having fallen theoretically they have got cheaper. but the credit to buy them with has become more difficult to obtain. to me this is why future price drops will not make houses easier to buy, it is that they will become more difficult to finance that will cause future price drops

mbga9pgf

Matters not a jot to me; thats why I have been saving like a b*stard for 5 years and will have over a 50% deposit to buy when the time comes.

chucky

mbga9pgf wrote: »

Matters not a jot to me; thats why I have been saving like a b*stard for 5 years and will have over a 50% deposit to buy when the time comes.

good man - let's just hope that you make money on those lloyds shares...

how's the portfolio doing?

bluey890

mbga9pgf wrote: »

Matters not a jot to me; thats why I have been saving like a b*stard for 5 years and will have over a 50% deposit to buy when the time comes.

Many LLs have been savng their BTL income and will be in an even better position to buy when the time comes.
Think about it...

bluey890

FallenAngel9898 wrote: »

I would suggest there is just as many LL's that are fooked and are sweating and crying every night, like the I/O mortgage knobs who bought in between 2004-07 after mewing 10%..buy...mewing 10% buy etc...

I thought the BTL repossesion percentage was lower than that of home ownership...
Can't be @rsed to find a lnk though. This bulls just eaten and is feeling lazy.

mewbie_2

bluey890 wrote: »

This bulls just eaten and is feeling lazy.

Presumably lots more bullsh1t later then?

bluey890

mewbie wrote: »

Presumably lots more bullsh1t later then?

Probably, I ate an entire sloth of bears.
Burrrppppp!