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Debate House Prices
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Some facts for a change, instead of speculation......
Comments
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I agree with you - i doubt anyone doesn't.
Doesn't stop them arguing though, does it....:rolleyes:The fact is Hamish, once people decide they want to move on and sell after putting it off during the recession, then supply will be huge as a glut of properties enter the market - it is already slowly beginning to happen.
If what you say is correct, (and personally I have my doubts due to mortgage terms being worse today than most people's existing ones), then the number of buyers will also increase by a similar amount leading to a zero sum game....Think of it as a massive two year stock pile about to be put up for sale.
As above..... With an almost identical stockpile of buyers being released as their houses sell.
The key thing is new household formation. Which is in addition to the pent up buyers and sellers from the existing market who cancel each other out.
New household formation was 250,000 last year. 80,000 houses were built. When you combine that with the fact that people are choosing not to move as the new mortgage deals are far worse than existing ones, I'd suggest it's no coincidence that the stock of properties on the market is falling so rapidly.... Now just 690,000 instead of the normal level of a million plus.“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”0 -
Jesus how can a simple well laid answer fail to be understood.
Non of us on this thread believe the reason prices are set is for any other reason other than supply and demand.
That covers falls and rises.
No one is trying to argue with you but your have made a statement and fail to notice we all think the reason prices fall, rise or stagnate is because of supply and demand.0 -
ruggedtoast wrote: »People need to be able to pay, and want to. The demand for Walkers Salt N' Vinegar crisps is enormous. Far higher than the demand for houses.
funny that you say that. house prices have increased this year, there obviously are many people able to pay.0 -
ruggedtoast wrote: »
a) People need to be able to pay, and want to. The demand for Walkers Salt N' Vinegar crisps is enormous. Far higher than the demand for houses.
b)Now try selling them at £5.00 a packet and see what happens. Or £165,000 perhaps.
!
a) Good job they can supply demand
b) There is no need to increase the price unless they can not meet demand, the demand then finds the price people are willing to pay to suit supply.
It is all supply and demand.0 -
setmefree2 wrote: »I just said it was demand - I said nothing about the strength of demand. There can be strong demand for houses and weak demand for houses but it's all demand.
No it isn't - Principles of Business 101 my buillish friend.
Supply and demand is calculated over a matrix that incorporates three variables. The life cycle of every single product you can buy in every market that exists is analysed and forecasted like this.
You can't just ignore one of them because it doesnt suit your personal views!
(Or that you think it somehow doesnt apply to houses)0 -
Sorry people.
I think I upset the apple cart with the "supply and demand, prices can only go up from here" argument by asking a question.
My bad.
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Graham_Devon wrote: »I think I upset the apple cart with the "supply and demand, prices can only go up from here" argument by asking a question.
no, i don't think you upset any apple cart.
it's good to debate these things and be able to explain how things work to other members of the forum.0 -
Graham_Devon wrote: »Sorry people.
I think I upset the apple cart with the "supply and demand, prices can only go up from here" argument by asking a question.
My bad.
No you failed to recognise anyone answered it or clarified what you meant (as you were saying we miss understood you)
:rolleyes:
Chewbacca defence strikes back.:rolleyes:0 -
it's good to debate these things and be able to explain how things work to other members of the forum.
Even to people like Graham who will be unable to understand it anyway.;)
We are a charitable bunch here...“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”0 -
ruggedtoast wrote: »The life cycle of every single product
But life cycle in houses is state of repair or potential (EG BER but lots of land). It will still find it's supply and demand value.
What is the life cycle of gold?
Even the life cycle of "walkers ready salted crisps" is only dictated buy the sell buy date.
But then to sell them price is lowered to a point there is a demand for stale crisps.
So unlike some goods gold and houses (land) never get to a stage of no residual value.0
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