House prices to suffer 'significant correction' in 2010

Charterhouse

It's not a mortgage availability problem. Get this into your heads, the credit availability of the last 10 years was the outlier. What is going on now is normal.

Graham_Devon

IveSeenTheLight wrote: »

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

You mean first time buyers who can afford to buy are not priced out of the market.

Just like those who buy ferraris can afford to buy a ferrari.

What a revelation.

Really2

Graham_Devon wrote: »

You mean first time buyers who can afford to buy are not priced out of the market.

Just like those who buy ferraris can afford to buy a ferrari.

What a revelation.

Graham , if you want to be pedantic (obviously) you are not a first time buyer until you are in the process of buying a house.:)

I am sure the desire to buy a house does not mean you are in fact a FTB.

chucky

Graham_Devon wrote: »

You mean first time buyers who can afford to buy are not priced out of the market.

Just like those who buy ferraris can afford to buy a ferrari.

What a revelation.

even more obvious

young couple working 10 hours per week cannot afford to buy a property

what a revelation :wall:

Graham_Devon

Really2 wrote: »

Graham , if you want to be pedantic (obviously) you are not a first time buyer until you are in the process of buying a house.:)

I am sure the desire to buy a house does not mean you are in fact a FTB.

Shouldn't that be "Graham, I want to be pedantic"?

I can do pedance.

I do quite like what you have said though, it's true, and actually quite good!

I'm going to have to resort to "Would be FTB's".

Really2

Graham_Devon wrote: »

"Would be FTB's".

Sorry G Dizzy. (I was hinting you were being and yes I am )

We could have a "FTB Wannabe" board.

Kohoutek

"U.K. mortgage approvals for January fell to an eight month low of 48,198 following 58,2223 in December. Economist were looking for a decline to 50,000 as credit standards remain tight, despite the quantitative easing efforts from the BoE."

http://www.dailyfx.com:80/forex/fundamental/daily_briefing/daily_pieces/top_fx_headlines/2010-03-01-1255-Drop_in_U_K__Mortgage_Approvals.html#ixzz0gwByHrtj

Look perfect for lower house prices...

chucky

Kohoutek wrote: »

"U.K. mortgage approvals for January fell to an eight month low of 48,198 following 58,2223 in December. Economist were looking for a decline to 50,000 as credit standards remain tight, despite the quantitative easing efforts from the BoE."

http://www.dailyfx.com:80/forex/fundamental/daily_briefing/daily_pieces/top_fx_headlines/2010-03-01-1255-Drop_in_U_K__Mortgage_Approvals.html#ixzz0gwByHrtj

Look perfect for lower house prices...

they were actually expecting 49,000 so it's only 802 less mortgages in the whole of the UK than forecast. such a huge amount.
http://www.forexfactory.com

unfortunately lower house prices is not good news as more people will not be able to buy.

lower house prices doesn't mean that it will allow more people to buy, it actually means the reverse.

Kohoutek

chucky wrote: »

but unfortunately lower house prices is not good news as more people will not be able to buy.

lower house prices doesn't mean that it will allow more people to buy, it actually means the reverse.

they were actually expecting 49,000 so it's only 802 less mortgages in the whole of the UK than forecast. such a huge amount.
http://www.forexfactory.com

You mean for existing owners that lose equity? But, for first-time-buyers, surely lower prices allows more people to buy?

It's still a measurable decline from 58,000 in December to 48,000 in January whatever economists were expecting.

chucky

Kohoutek wrote: »

You mean for existing owners that lose equity? But, for first-time-buyers, surely lower prices allows more people to buy?

no- first time buyers or anyone looking to buy.

house prices don't fall without mortgage markets making funds more expensive or even there not being money to lend or even unemployment increasing.

house prices don't drop because they're unaffordable or even expensive, they drop because people can't buy them.

for proof of this look at the transaction volumes at any time that there have been house price falls.