House prices higher than year ago

the_ash_and_the_oak

MarsdenCuckoo wrote: »

Am no expert but would seem to me that this latest little rise is just a blip. When prices go down they never come straight back up but rather 'hover' a little i.e. up a little, down a little, etc., etc. Doesn't matter how much certain people 'talk up' house prices, until the price of a FTB's house is within easy reach of being affordable by a FTB's wage then there's very little chance of any stability in the whole housing market - just my personal opinion.

the counter argument to this is to use monthly outgoings rather than ticket price (a 1 million house is affordable at 1% - not sure about paying off the capital but still!) - tho this relies on initial rates staying low for a long enough period to pay off enough capital that rate rises aren't a problem. not totally sure current rates of 6%ish are that low (unless you guys really want to use that BR+4% tracker that was linked the other day!)

Dan:_4

the_ash_and_the_oak wrote: »

the counter argument to this is to use monthly outgoings rather than ticket price (a 1 million house is affordable at 1% - not sure about paying off the capital but still!) - tho this relies on initial rates staying low for a long enough period to pay off enough capital that rate rises aren't a problem. not totally sure current rates of 6%ish are that low (unless you guys really want to use that BR+4% tracker that was linked the other day!)

It's a shame no products are available at 1%.

the_ash_and_the_oak

Dan: wrote: »

It's a shame no products are available at 1%.

c'est la vie

StiflersMom

MarsdenCuckoo wrote: »

Am no expert but would seem to me that this latest little rise is just a blip.

Do you mean the double digit percentage rise since February?

That's one heck of a blip

:j:j

tomstickland

My observations on Rightmove show that houses under £150K are falling in price in my area. If they aren't lowered then they sit on the market. Some have been on the market for 18 months now.

abaxas

Dan: wrote: »

It would appear to be a good time to buy. Last time this happened was 1994/95.

Lets assume this is 1994 and we get the same HPI and wage inflation afterwards.

No-one is going to give anyone a mortgage for that amount as it would be greater than your income. So magically houses would be worth more than people at the bottom could ever pay. Which would be interesting :P

StiflersMom

abaxas wrote: »

Lets assume this is 1994 and we get the same HPI and wage inflation afterwards.

No-one is going to give anyone a mortgage for that amount as it would be greater than your income. So magically houses would be worth more than people at the bottom could ever pay. Which would be interesting :P

Is it just me, or does that posting make no sense whatsoever?

:cool:

abaxas

StiflersMom wrote: »

Is it just me, or does that posting make no sense whatsoever?

:cool:

What I'm saying is that if we have the same hpi and wage inflation as we had 1994>2007 from 2009>2022. It would come to a point where no-one could get a mortgage as they monthly payments would be > than salary.

You cant buy a 30p snack with 20p.

the_ash_and_the_oak

you would well and truly have missed the boat then!

abaxas

the_ash_and_the_oak wrote: »

you would well and truly have missed the boat then!

No everyone would have missed the boat unless they wanted to live in the same house till death and their kids after their death.

However this cant happen, as there would need to be a market to dictate a price. If you cant sell anything, there is no market.