You have To Love The BBC and EA - Spring Bounce

Cleaver

brit1234 wrote: »

In this economic climate I just can't see it. I also here estate agents blaming banks for not lending money which they haven't got. Surely after the election a few home truths can come out.

If it's not the election, then I'm sure they'll be something else that'll cause 50% price drops. Maybe a different type of mortgage product, from Mexico, or somewhere, in September 2010? Or if it's not that, I'm sure they'll be something else. Maybe a global credit deficit in April 2011? That might cause 50% drops. Or if it's not that, I'm sure they'll be something else. Maybe a national mortgage issue in January 2012? Or it's not that, I'm sure they'll be something else. Maybe a...

chucky

zappahey wrote: »

How does that explain effective demand?

i know exactly what i meant and it was effective demand...

zappahey

chucky wrote: »

i know exactly what i meant and it was effective demand...

I knew what you meant but I couldn't figure out how Emy1501's post was supposed to explain it.

brit1234

ILW wrote: »

When you say priced out, do you mean you cannot afford any property, or is it a matter of you cannot afford the type of property you desire in the area you want?

Apart from house boats, shared ownership and a couple of studio flats yes

Can't buy outside London due to work shifts.

Plan is to just keep on saving or emigrate if inflation or exchange rate doesn't kill my savings.

Emy1501

zappahey wrote: »

I knew what you meant but I couldn't figure out how Emy1501's post was supposed to explain it.

As I say I was really responding to the the original question about increased supply and whether it would have an effect on prices. Maybe you can explain the relevance of effective demand to the question asked as there seems to be little evidence that more buyers are coming to the market and peoples ability to get credit is not improving and issues with the SLS market would suggest its likely to get worse rather than better.? There are many potentila buyers out who cannot get credit as someone looking to buy a property from someon I know found out when they actually tried to get a mortgage.

If we look at either these figures or RICS figures the number of sellers are going up whilst the number of buyers are going down since the beginning of the year.

Harry_Powell

brit1234 wrote: »

Apart from house boats, shared ownership and a couple of studio flats yes

Can't buy outside London due to work shifts.

Plan is to just keep on saving or emigrate if inflation or exchange rate doesn't kill my savings.

I read on here that you had been outted as a BTL landlord who was talking down the market in order to add to his property portfolio. The evidence provided was very compelling and I've asked you about it several times without response. What's the truth?

System

brit1234 wrote: »

Apart from house boats, shared ownership and a couple of studio flats yes

Can't buy outside London due to work shifts.

Plan is to just keep on saving or emigrate if inflation or exchange rate doesn't kill my savings.

You could move out of London.

I'd LOVE to live in London, but I can't afford to, so I don't.
I suppose I could !!!! and moan about my right to live in London, but I don't.

chucky

zappahey wrote: »

I knew what you meant but I couldn't figure out how Emy1501's post was supposed to explain it.

she's confusing the effective demand with what the aggregate demand of property would be at lower prices.

increased supply is a bit irrelevant when there is effective demand that supports prices.

Emy1501

chucky wrote: »

she's confusing the effective demand with what the aggregate demand of property would be at lower prices.

increased supply is a bit irrelevant when there is effective demand that supports prices.

Demand is not meeting supply. Agents only sold 15% of stock they have and last month more property came on than were sold. Prices have risen because people have been happy to hold onto supply in the hope that demand will pick up in the future. Demand is not picking up and as Kate Barker said you cant expect people to hold on to stock.

chucky

Emy1501 wrote: »

Demand is not meeting supply. Agents only sold 15% of stock they have and last month more property came on than were sold. Prices have risen because people have been happy to hold onto supply in the hope that demand will pick up in the future. Demand is not picking up and as Kate Barker said you cant expect people to hold on to stock.

without dragging this out and making it one of these really long and boring threads. can you let us all know what percentage of property stock estate agents need to sell so that property prices fall?

your point becomes a bit invalid because if currently 15% of property stock selling. what happens if 25% estate agents property stock was selling - it would mean even higher price rises by your theory.

as i said before effective demand is currently enough - you are generalising what demand actually does to the market.