Supply and demand

IveSeenTheLight

zappahey wrote: »

I don't have direct recent experience from this distance but I'm watching an area in Wiltshire, that we moved from, and that's how it looks on the surface.

Therefore supply does not equal demand, which was my point

Emy1501

the_ash_and_the_oak wrote: »

This is the thing - my parents having this problem - can't sell (reduced price a bit but thats not really the problem - lots of offers - inc above orig asking price - but the buyers needing to sell their flats first)

Just kinda hoping everyone is happy with what they've got imo

This what I was seeing in the Summer of 2007 when I sold. I had a few offers but the offers were from people who could not sell. In the end sold to someone who did a let to buy.

Have started to the see the same thing over the last few weeks. Have been to see a couple of houses where sales have fallen through due the buyers sellers pulling out. Have also noticed this has been a problem on a few threads I have read on a few forums.

It will be interesting to see if this is just a problem up until the new year or continues into next year.

macaque_2

chucknorris wrote: »

Sorry sir, no logic allowed is on this thread, please find a thread where fantasy 70% falls are not envisaged to post on, this thread is reserved for the desperate. Silly bears are allowed to have fun too you know (even if they are bonkers)

(note to bears not suggesting you are all silly, but 70% come on, ooops fantasy disruption, please ignore)

Is that response the product of a rational analytical process?

An average house in 2006 was £54,008 and by April 2007 it had risen to £209,454. If you had told a home owner that prices would rise 388% over the next 11 years, the response would have been: Good heavens! please tell me why?

Could house prices return to 1996 levels (a fall of 74%)? Well, we are more highly taxed and far more indebted today than we were in 1996. Unlike 1996 unemployment is rising and interest rates only have one direction to go. Incomes are also sliding rapidly and could easily return to pre 1996 levels. We face the very real prospect that average disposable incomes may be lower than 1996 within 2 years. So how can a price rise of over 300% be sustained?

Here's a question: 5 years ago people were paying £thousands to attend property seminars where they were regaled with stories of wealth and fortune. How long do you think those seminars would have lasted if the speakers had stood up and and advised investors to liquidate their assets?

There are rational reasons why house prices are likely to fall to pre 2000 levels. Rather than debate this you have reacted with anger and words like; "fantasy, desperate and silly bears". My suspicion is that your response has more to do with fear than logic.

From the desk of:
The Right Honourable Simian Macaque ADHD
President of the 70% club

zappahey

IveSeenTheLight wrote: »

Therefore supply does not equal demand, which was my point

But, it does, Even if many buyers are chasing one house, the price will rise to such a point that only one will be willing and able to proceed (ignoring non-price issues for the sake of discussion).

456789

silvercar wrote: »

Being pedantic, that looks like a straight line, rather than a demand curve.

In economics straight lines are used to simplify the diagrams

username2003

Why no supply line on the pretty graph? Or indeed no mention of elasticity?

456789

username2003 wrote: »

Why no supply line on the pretty graph? Or indeed no mention of elasticity?

Because it is taken from a GCSE economics website - and isn't really the best diagram to use in relation to house prices (or as some people would say the real world )

chucknorris

macaque wrote: »

Is that response the product of a rational analytical process?

An average house in 2006 was £54,008 and by April 2007 it had risen to £209,454. If you had told a home owner that prices would rise 388% over the next 11 years, the response would have been: Good heavens! please tell me why?

Could house prices return to 1996 levels (a fall of 74%)? Well, we are more highly taxed and far more indebted today than we were in 1996. Unlike 1996 unemployment is rising and interest rates only have one direction to go. Incomes are also sliding rapidly and could easily return to pre 1996 levels. We face the very real prospect that average disposable incomes may be lower than 1996 within 2 years. So how can a price rise of over 300% be sustained?

Here's a question: 5 years ago people were paying £thousands to attend property seminars where they were regaled with stories of wealth and fortune. How long do you think those seminars would have lasted if the speakers had stood up and and advised investors to liquidate their assets?

There are rational reasons why house prices are likely to fall to pre 2000 levels. Rather than debate this you have reacted with anger and words like; "fantasy, desperate and silly bears". My suspicion is that your response has more to do with fear than logic.

From the desk of:
The Right Honourable Simian Macaque ADHD
President of the 70% club

Anger? lol nowhere near the correction emotion, and why would I be fearfull? if they did fall 70% I still wouldn't be in trouble from a mortgage point of view, but of course the whole country would be finished, just as well the only place it will ever happen is in your mind, isn't it.

Your silly talk of 70% falls is laughable, no I take that back, it's far too silly to even be considered funny.

EDIT: just to make it clear I am not calling all bears silly, just you.

Bootski

I'm repeating myself as on the other thread Watch Out:!!!.....

Or should I start a new thread??

Bootski

chucknorris wrote: »

Anger? lol nowhere near the correction emotion, and why would I be fearfull? if they did fall 70% I still wouldn't be in trouble from a mortgage point of view, but of course the whole country would be finished, just as well the only place it will ever happen is in your mind, isn't it.

Your silly talk of 70% falls is laughable, no I take that back, it's far too silly to even be considered funny. - it smacks of desperation:p

EDIT: just to make it clear I am not calling all bears silly, just you.

I know all Bears are not only desperate but probably suicidal right now!!