Why are prices rising so much and so fast?

Radiantsoul

camper_1982 wrote: »

Why dont people stop buying then and it will stop the rises. Problem i have is ive sold my house to a cash buyer and got the asking price, which is great, but they are only paying me that if i sell it as no chain. so ive agreed.

Spent the last 2 weeks looking for somewhere to buy but there is nothing out there, so we are going to rent for a few months until we see the house i want.

But from watching the market, im really worried that asking prices are going up, so sale prices will too and we will be left out of our depth with trying to get a decent house.

What to do?

There are houses, but you probably aren't prepared to pay the current market rate. It seems you are going to have to spend some money.

Inside your head you have some sort mental yardstick for what a house is work, but unfortunately house prices have moved on. It is rather like those who were trying to sell house last year at 2007 prices. It might very well be that your mental yardstick represents the price houses prices will be in a years time, or the correct long term average, but unfortunately you need to pay the market rate or wait until prices adjust to what you believe they ought to be(assuming that you are correct and prices are too high).

IveSeenTheLight

Pete111 wrote: »

A house is actually worth what someone is willing to pay

Actually, it's not.
A house is valued at what both a buyer and a seller agree on.

If I offered you £10 for your house, would you sell it? No, because it is worth more to you

IveSeenTheLight

abaxas wrote: »

Rising transactions != as rising mortgages given by Lloydbos (or whatever it's called).

Whoever implied it was?
If ou think that way then you are wrong.

Transactions are measured against actual sales.
Try looking against the LR data for transactions

Harry_Powell

House prices have increased because of the Bears on here and HPC are pushing up prices with their mad obsession with buying a house.

ruggedtoast

Harry_Powell wrote: »

House prices have increased because of the Bears on here and HPC are pushing up prices with their mad obsession with buying a house.

I've just added Night of the Hunter to my Lovefilm list!

dasilva_2

Tony Blair has just stated that he will not be happy until he owns all the houses in the UK.
And then they will be very expensive never mind nationwide and halifax valuations.

Harry_Powell

ruggedtoast wrote: »

I've just added Night of the Hunter to my Lovefilm list!

You won't be disappointed! It's a top movie. While you're at it, add 'The Innocents (1961)' and 'M (1931)' as well.

Let me know what you think when you watch it (and the others if you watch them)

The opening soundtrack for 'The Innocents' sung acapella over the 20th Century Fox banner is the most chilling intro to a movie I've ever seen/heard:

"We lay my love and I beneath the weeping willow.
But now alone I lie and weep beside the tree.

Singing "Oh willow waly" by the tree that weeps with me.
Singing "Oh willow waly" till my lover return to me.

We lay my love and I beneath the weeping willow.
A broken heart have I. Oh willow I die, oh willow I die."

Brrrrrr!!!!

ruggedtoast

Harry_Powell wrote: »

You won't be disappointed! It's a top movie. While you're at it, add 'The Innocents (1961)' and 'M (1931)' as well.

Let me know what you think when you watch it (and the others if you watch them)

The opening soundtrack for 'The Innocents' sung acapella over the 20th Century Fox banner is the most chilling intro to a movie I've ever seen/heard:

"We lay my love and I beneath the weeping willow.
But now alone I lie and weep beside the tree.

Singing "Oh willow waly" by the tree that weeps with me.
Singing "Oh willow waly" till my lover return to me.

We lay my love and I beneath the weeping willow.
A broken heart have I. Oh willow I die, oh willow I die."

Brrrrrr!!!!

Thanks I'll add those as well.

wymondham

Prices have only risen due to people being prepared to pay the price asked!

ln1234

Anecdotal evidence. 2 houses on our Road sold in December for around 20% more than they were a year before that.

Did the government force them to pay that? I don't think so. I know one of the buyers is a young couple with a baby on the way, and they wanted to move out from their current property which was deemed too small. I believe in this day and age a buyer has to jump through many hoops if they are to get a mortgage - including finding a 25% deposit, having to prove your income, and having your financial history scrutinised. Even after that these buyers are willing to pay over the odds for these houses. Why is that?

ultimately it comes down to a quality of life. This couple decided that paying a premium for a house is not as important as providing the quality of life they want to give to their new family.

I quite agree with them.