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Debate House Prices


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Houses overvalued still?

24567

Comments

  • sss555s
    sss555s Posts: 3,175 Forumite
    StevieJ wrote: »
    Far more 8% than 16% during those years.

    http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

    I was hoping someone would find a nice graph :D

    I still think the prices wont drop much more and there will be another solution to the problem.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    sss555s wrote: »
    I still think the prices wont drop much more and there will be another solution to the problem.

    If you think of one let us all know. ;)
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
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    RDB wrote: »
    When was the last time house prices were undervalued then? Mid 90's?

    When will they be undervalued again?

    Yes, houses in the UK in the mid 90's were significantly undervalued, both against long term trend here, and against other comparable countries internationally.

    The 90's were not normal prices, they were the buying opportunity of a lifetime.

    This graph illustrates just how cheap they were compared to other countries.

    0.4448!OpenElement&FieldElemFormat=gif
    “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”
  • sss555s
    sss555s Posts: 3,175 Forumite
    Thrugelmir wrote: »
    If you think of one let us all know. ;)

    Well inflation for one, longer borrowing deals, relaxed lending conditions deals.....
  • nembot
    nembot Posts: 1,234 Forumite
    Yes, they are too expensive by approx 35%.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    sss555s wrote: »
    Well inflation for one, longer borrowing deals, relaxed lending conditions deals.....

    Other than inflation they are not solutions, just hopes.
  • sss555s
    sss555s Posts: 3,175 Forumite
    Thrugelmir wrote: »
    Other than inflation they are not solutions, just hopes.

    Yes inflation is my favourite too but you really do need to look up the definition of solution. :rolleyes:
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    Yes, houses in the UK in the mid 90's were significantly undervalued, both against long term trend here, and against other comparable countries internationally.

    The 90's were not normal prices, they were the buying opportunity of a lifetime.

    This graph illustrates just how cheap they were compared to other countries.

    Anecdotal as well, I remember someone telling me they had just bought a house for £X around 1996, I remember thinking wow that was cheap.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    sss555s wrote: »
    Yes inflation is my favourite too but you really do need to look up the definition of solution. :rolleyes:

    I'm aware of what a solution is. You need to understand the basics of problem first to work it through though. Basing it on hopes is little more speculating.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Basing it on hopes is little more speculating.
    that's what i keep on telling the STR's and the HPCers
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