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Debate House Prices
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The UK Housing Bubble yet to Burst: FT Video
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I think you should go to the library, get a text book on basic economics, read it, then read it again. Then you can come back on here and debate with the big boys. Good luck with your studies.here's a test for you wookster - see if you can reply with logic and a structured response without deflecting it onto something else...
when will rates rise and how many home-owners will it affect...
it's a simple answer.0 -
here's a test for you wookster - see if you can reply with logic and a structured response without deflecting it onto something else...
when will rates rise and how many home-owners will it affect...
it's a simple answer.
It'll affect a few only,cos most of the mugs like myself are paying 4-5%,and have been ever since 0.5% reduction.
Seems all the clowns on here expect to mop up cheap houses if rates rise.0 -
undetterred wrote: »It'll affect a few only,cos most of the mugs like myself are paying 4-5%,and have been ever since 0.5% reduction.
Seems all the clowns on here expect to mop up cheap houses if rates rise.
You only need a few to have to sell for there to be problems. Look at late 2007-2008. The vast majority had no problems paying their mortgage buts it the few that couldn't who crashed the market. There were way more mortgages available in late 2007-2008 than now.
Banks need money if rates go up to say 2-3% over the next 18 months they will pass it all onto mortgage holders. There are those paying 4.5% on a tracker could be close to 7-8%. I know someone recently offered a 90% tracker at 6x wages rate 4.75%.0 -
Can some one explain 1973 to me 5.3x with strict lending criteria in place and rising interest rates?0
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When did we last have a balance between supply and what people want? There's always been excess demand for houses in this country, and that's been factored into prices from previous years.
Exactly, therefore it's clear how to address the increase in prices.
People need to realise that the house prices are sustainable in relation to the supply and demand, it's just that it means under the current circumstances, that only the more wealthy will be able to afford.The Nationwide trend takes into account the bubble, and so it is bound to project it forward.
The Nationwide trend also takes into account the trough from the last house price correction and indeed the peak and trough from the previous correction and peak of the 80's:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
nice one [STRIKE]wookster[/STRIKE] boomers - still unable to tell me how many people a rise in interest rates it will affect i see... what a surprise...boomerangs wrote: »I think you should go to the library, get a text book on basic economics, read it, then read it again. Then you can come back on here and debate with the big boys. Good luck with your studies.
you could have replied with the ascii picture you would have come across a bit more intelligent... good work :T0 -
Nationwide mmmh do they not have a big interest in house prices rising?? I wonder why they would project house prices rising.....just a thought.
They're not projecting forward, they're reporting historical facts.
they're showing factually, what the average yearly house price increase there has been taking into account the "bubbles" and the "crashes" throughout a 30 year period:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
According to Halifax, the low point in the previous crash was: October 1995. The average house price was £61,251. The average earnings was £19,796, and the ratio was 3.09.
They use average earnings for a male in full-time employment. If you included people in part-time employment etc, you'd have a lower average earnings figure and a higher ratio, ofc. The important thing is to be consistent.
http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp
Very true.
This can also be seen here where the lowest ratio was 3.09.
Incidently, the 27 year average is 4.02 with the current ratio being 4.35:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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