House prices to suffer 'significant correction' in 2010

Graham_Devon

ukcarper wrote: »

But you are saying that a FTB should be able to buy an average house and that has never been the case

Am I?

News to me.

sjaypink

ukcarper wrote: »

But you are saying that a FTB should be able to buy an average house and that has never been the case

I never get this line of argument. The average of both should equate. Those earning less than average (presumably ftb) buy homes priced less than average. Those earning more than average buy a house priced above average, right?

IveSeenTheLight

Graham_Devon wrote: »

Explained? You mean you argued your side for using your preferred figures which means you can inflate house prices?

Bite me.

No, you clearly didn;t understand the difference between mean and median averages.

Using median is idealistic which would require there to be enough properties marketed to balance the supply and demand to stop the HPI that is realistically happening.

I don't need to inflate prices, I simply understand why they have done so.

HAMISH_MCTAVISH

ukcarper wrote: »

But you are saying that a FTB should be able to buy an average house and that has never been the case

An FTB should be able to buy a small entry level property, much cheaper than the "average" house......

In most areas they can.

There is no "affordability problem", for those that start young and use the ladder. The problem exists for people that waste money on rent for a decade, and then expect to be able to buy an average house.

sjaypink

IveSeenTheLight wrote: »

Even taking you Median FT wage, many house buyers are dual income.
Would this mean that the median average dual income would be £50,856?

Yes, it would. Which would probably fit your theory better as IIRC, average ftb purchases are IRO £150K

Graham_Devon

IveSeenTheLight wrote: »

No, you clearly didn;t understand the difference between mean and median averages.

Clearly.

I've explained the differece. If you would like to explain how I am wrong here, please do.

Using median is idealistic which would require there to be enough properties marketed to balance the supply and demand to stop the HPI that is realistically happening.

I don't need to inflate prices, I simply understand why they have done so.

Now you are moving on to something different.

The annoyance came from using the (mean) average wage.

If you had simply said the average wage of homebuyers, we wouldn't be having this argument, as in essence, this is exactly what you are saying. This is again, a completely differenct average.

HAMISH_MCTAVISH

sjaypink wrote: »

Yes, it would. Which would probably fit your theory better as IIRC, average ftb purchases are IRO £150K

The average FTB purchase is more like 90K.

sjaypink

HAMISH_MCTAVISH wrote: »

The average FTB purchase is more like 90K.

Really? :cool: Probably a local figure I picked up then.... even better stats for the bull agenda though , don't even know why you bother trying to twist the wage averages with the mean

Graham_Devon

HAMISH_MCTAVISH wrote: »

There is no "affordability problem", for those that start young and use the ladder. The problem exists for people that waste money on rent for a decade, and then expect to be able to buy an average house.

If you don't "waste" money on rent for a decase (or however long) where do you propose people live when they do not have the means to buy? Means being either deposit, how they are living (buying is not suitable for everyone as soon as they move from their parents) etc.

I also find this extremely hypocritical, coming from the person who did exactly what you are describing. I.e. not wanting the FTB place, and moving straight into the average house on the back of a handout

There IS an affordability problem.

There isn't if you are lucky enough to have parents able, and also willing, to just give you a lumpsum of cash to get you over the first, biggest hurdle. The very hurdle which means most have no option but to rent.

IveSeenTheLight

Graham_Devon wrote: »

Clearly.

I've explained the differece. If you would like to explain how I am wrong here, please do.

Now you are moving on to something different.

The annoyance came from using the (mean) average wage.

If you had simply said the average wage of homebuyers, we wouldn't be having this argument, as in essence, this is exactly what you are saying. This is again, a completely differenct average.

Once again you've gotten yourself all confused in the thread.

I have always maintained that it's higher earners who buy property clarified and justified by my 70% ownership stat and equating it to the top 70% of earners.

This is why I belive mean is more realistic than median as you want to use the middle median man.

Night Night Graham, I'm not going to enter into a head hitting wall syndrome with you.