Housing Affordability has peaked, now decreasing

chucky

Chrysalis wrote: »

2010 prices will go down and repossessions up, the banks will stop holding back after the general election.

yes that magical saviour of a general election is going to push house prices down - don't hold your breath

Thrugelmir

breadlinebetty wrote: »

The report didn't say the end of 2012 - it said 2012! D'oh!

Panto time I see. Oh yes it did!

In summary, the CEBR concludes:

• House price growth will moderate in 2010
• Prices at the end of the year will be between two and four per cent higher than today.
• Over the longer term, the weak recovery will continue to hold growth back,
• House prices will be around fifteen per cent higher at the end of 2012 than they are today.

http://www.citywire.co.uk/professional/-/news/other/content.aspx?ID=374244

chucky

Thrugelmir wrote: »

Panto time I see. Oh yes it did!



http://www.citywire.co.uk/professional/-/news/other/content.aspx?ID=374244

yep - panto season is certainly upon us... that looks like a bullish post you've got there T-man... very unlike you not to be expecting house price drops... :rolleyes:

In summary, the CEBR concludes:

• House price growth will moderate in 2010
• Prices at the end of the year will be between two and four per cent higher than today.
• Over the longer term, the weak recovery will continue to hold growth back,
• House prices will be around fifteen per cent higher at the end of 2012 than they are today.

nembot

Chucky why don't you add some of your own anecdotal evidence, instead of posting rubbish from companies with a vested interest in the market.

It's bloody obvious they're not going to say things are bad, in exactly the same way Ireland's Central Bank said nothing about the boom over there and we all know how that turned out.

chucky

nembot wrote: »

Chucky why don't you add some of your own anecdotal evidence, instead of posting rubbish from companies with a vested interest in the market.

It's bloody obvious they're not going to say things are bad, in exactly the same way Ireland's Central Bank said nothing about the boom over there and we all know how that turned out.

i copied and pasted Thruglemeir post Bot man - exactly what his post said from Citywire. :eek:

you obviously didn't like what it said... never mind... my personal anecdotal won't be happy reading for you - chiching

Thrugelmir

chucky wrote: »

yep - panto season is certainly upon us... that looks like a bullish post you've got there T-man... very unlike you not to be expecting house price drops... :rolleyes:

Lower interest rates will hold prices up in the short term.

Even in the depths of recession those with money will be able to chase desirable property.

Whether thats a sensible investment stategy in the medium/long term is another matter. As we may experience a secondary property bubble......

chucky

Thrugelmir wrote: »

Whether thats a sensible investment stategy in the medium/long term is another matter. As we may experience a secondary property bubble......

and correction

Thrugelmir

chucky wrote: »

and correction

So much uncertainty at the moment, if you can get the call right there's big bucks to be made.....

Emy1501

honeypopper wrote: »

ukcarper wrote: »

2 things.

1. how do people climb the property ladder if they don't make profit on the home they're selling?

2. how does inflation help someone climb the property ladder?

It harder to climb the property ladder with massive house price inflation unless your incapable of saving a deposit. The next property becomes more expensive with HPI.

nearlynew

2 things.

1. how do people climb the property ladder if they don't make profit on the home they're selling?

2. how does inflation help someone climb the property ladder?

1. By saving and increasing your income, over time you can afford to move to a bigger/better property. This does not require the value of your old or new property to have gone up.

2. This applies to wages and is a remnant of the high wage inflation of the 70s. The same conditions do not apply now, but the idea is still part of the national psyque - hence the HPI cheerleaders always stating it as a given.


What you need to remember is a that a house just sits there being a house. Without money being spent on it, its value would actually fall.
When things, including houses, start costing more all that has happened is your money has been devalued, so you need more of it to buy the same item.

Or, more simply............

inflation is theft


Only when enough people realise this will we be on the way to ending the bank's stranglehold on our economy.
Then we can tell them to shove their magic money making machine and use our own, debt-free version.

vive la revolution