House prices to suffer 'significant correction' in 2010

ukcarper

sjaypink wrote: »

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?

But there’s more to it than average wage.

Graham_Devon

IveSeenTheLight wrote: »

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

LOL. Night night ISTL.

No need to enter into it anyway. Houses will be a further 0.8% cheaper this month. Afterall, theres some icy roads tonight and the breeze has picked up.

sjaypink

ukcarper wrote: »

But there’s more to it than average wage.

Of course, but I just think if you are to enter a discussion using the fairly basic / clumsy stats of average national wage v average national hp you need to be fairly consistent in taking both at face value, thats all

IveSeenTheLight

Graham_Devon wrote: »

LOL. Night night ISTL.

No need to enter into it anyway. Houses will be a further 0.8% cheaper this month. Afterall, theres some icy roads tonight and the breeze has picked up.

Well we have been saying for a long time there would be a winter dip

HAMISH_MCTAVISH

Graham_Devon wrote: »

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.

Oh look, a shiny thing......

Nonsense Graham. The average FTB can buy a flat well within affordable territory in most of the country. And then use it to build equity until they can afford a house.

Some can get help from parents and skip that step. Some will have to use it to progress up the ladder.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Nonsense Graham. The average FTB can buy a flat well within affordable territory in most of the country. And then use it to build equity until they can afford a house.

As you go on about facts so much, do you have any proof of this?

I don't think what you say is true.

And here is my evidence:
http://www.telegraph.co.uk/finance/economics/6890962/Buyers-priced-out-of-the-UK-housing-market.html
http://www.metro.co.uk/money/56367-first-time-buyers-priced-out
http://www.estateagencynews.co.uk/news/news-0209c.asp
http://www.talktalk.co.uk/money/guardian/news/2006/10/30/millions-of-first-time-buyers-priced-out-of-mar.html

I haven't actually read any of them.

Just searched google for FTB priced out. But you get the jist.

As for the "then build equity"....just how many people have been burned by buying flats, and then seeing them fall in value well over the average falls in house prices?

You seem to be using equity as a given. It's not, clearly. Very recent history shows this.

HAMISH_MCTAVISH

Graham_Devon wrote: »

I haven't actually read any of them.

You should have read them......

Some excerpts.......

A FAIRER deal on mortgage rates would bring 95 per cent of the country within the reach of first-time buyers, it has been claimed.

"The problem is that it is difficult, because of the credit crunch, to get access to really cheap mortgages.

That's not a house price problem Graham, that's a mortgage availability problem.

You get the jist....

As for the "then build equity"....just how many people have been burned by buying flats, and then seeing them fall in value well over the average falls in house prices?

You seem to be using equity as a given. It's not, clearly. Very recent history shows this.

Over the last 10 years, as per my example?

None......

And in fact, we've already seen those who bought a year ago gain 10% or so.

Graham_Devon

Hamish, you can pick up the articles I said I didn't read and disect them as much as you like, google is simply full of articles about FTB's not being able to afford to get on the ladder. The articles were simply the first four that come up.

I asked you for evidence of what you said.

As for the equity, can't seriously believe you would use the last year as an example of being 10% up. Only the other day I completely ripped your figures apart, and you simply left and made that "get at hamish" thread.

Someone who bought a flat in january, even february, will NOT have made a 10% profit. They may have covered their buying fee's. Simple as that.

I take it as you ignored imy call for evidence of what you said, you have none.

DaddyBear

HAMISH_MCTAVISH wrote: »

And in fact, we've already seen those who bought a year ago gain 10%

in London maybe, elsewhere not so much. As for those in your beloved Aberdeen, they gained precisely nothing.

IveSeenTheLight

Graham_Devon wrote: »

google is simply full of articles about FTB's not being able to afford to get on the ladder.

......

I take it as you ignored imy call for evidence of what you said, you have none.

FTBers are not priced out of the market.
Just look at the CML which shows that the percentage of FTBers in the market is still relative

http://www.cml.org.uk/cml/media/press/2543

The number of loans to first-time buyers hit a two-year high in December 2009

December saw 24,900 loans to first-time buyers, the highest number since November 2007