House Prices Soar By 10%

amcluesent

Our politicians have been happy to promote the deflationary myth

It brings me no pleasure, though, that the signs of high and rising UK inflation are now so stark that it's difficult even for the most ardent deflationists to deny them.

I don't want UK inflation to escalate and I certainly don't want borrowers squeezed. Such developments would seriously undermine our fragile recovery. I'm just writing it as I see it – not least because I've been appalled at the utter bunk the general public has been fed on this complex, yet hugely important subject.

Anyone without debt and a home-owner should sit tight as the value of their asset appreciates as savings are eaten away by rampant inflation. Of course, if you can't service debt, start looking for that cardboard box now.

nollag2006

amcluesent wrote: »

STR now, this is likely the last strength in the market for generations, the macro-economic factors make this self-evident.

That's convinced me !

The only question is should I go for Gold or Silver, or some other sparkly material with nil yield and no intrinsic value?

:rotfl:

chucky

StiflersMom wrote: »

And I am Hamish and chucky and.. and ...

Come on - surely you can do better than that?

Perhaps not ....

no i'm definitely me - she obviously can't do better but then she comes put with this gem

carolt wrote: »

Bollox, nollag. Your way is not that far from my way, and it's certainly not happening here.

here's a little reminder of her area... what a classic post from someone in absolute denial about house prices

chucky

jackieb wrote: »

We're still waiting on the big price falls that had been predicted. It's just not happened here.

and unlikely to happen anywhere soon... it took banks collapsing and the credit markets drying up completely to get nearly 15% corrections...

there are too many things in place for that to happen again

jackieb

chucky wrote: »

and unlikely to happen anywhere soon... it took banks collapsing and the credit markets drying up completely to get nearly 15% corrections...

there are too many things in place for that to happen again

I know. That's why my son wants to buy as soon as he can. Waiting hasn't achieved anything so far - things can only get tougher for him to buy. For everyone who's said to wait it out - up here there's been no point to wait.

HAMISH_MCTAVISH

jackieb wrote: »

I know. That's why my son wants to buy as soon as he can. Waiting hasn't achieved anything so far - things can only get tougher for him to buy. For everyone who's said to wait it out - up here there's been no point to wait.

Very true.

In fact waiting has been seriously counterproductive for most as the costs of mortgages for young FTB's have soared.

And thats if you can get one after the Gestapo-like credit checks and being charged rates more suitable for sub-prime-slime (The Times words, not mine).

chucky

jackieb wrote: »

I know. That's why my son wants to buy as soon as he can. Waiting hasn't achieved anything so far - things can only get tougher for him to buy. For everyone who's said to wait it out - up here there's been no point to wait.

i wouldn't say buy now - i'd say buy now, the right property at the right price.

it's never a bad time to buy - just some times are better than others.
Feb 2009 was the best for a few years

googler

HAMISH_MCTAVISH wrote: »

That's nonsense, of course.

Yes, there is a small amount of skew present from sales mix, but it's by no means the majority of the price rises in the last year.

Just yesterday I looked at a pretty ordinary 170K house on ASPC that last sold in Nov 2007 (RoS date, actually would have sold in Sept at absolute peak), and the mortgage valuation today ...........

How can you say my figures are nonsense when you haven't seen anything apart from my summary of them?

How can you call it a SMALL amount of skew when you haven't seen the figures?

Your ONE sample house doesn't prove anything.

googler

Between first and second half of 2009; average price in the three lowest price bands went down, whilst those in the bands reaching £500k went up......

Average price
1st half 2nd half
£70,509 £61,448 (sub-£100k) down 12.85%
£124,633 £123,538 (100 to £150k) down 0.88%
£171,236 £170,330 (150 to £200k) down 0.53%
£235,528 £248,680 (200 to £300k) up 5.58%
£340,570 £342,245 (300 to £400k) up 0.49%
£439,167 £442,506 (400 to £500k) up 0.76%

However, in terms of numbers of sales, those in the lower price bands went up by minimal amounts, whereas those in the higher price bands increased by over 200%

Number of Sales
1st half 2nd half
74 79 up 6.76% (sub-£100k)
170 174 up 2.35% (100 to £150k)
77 101 up 31.17% (150 to £200k)
73 87 up 19.18% (200 to £300k)
15 46 up 206.67% (300 to £400k)
6 21 up 250% (400 to £500k)
5 20 up 300% (500k to £1 mill)

This gave an overall increase in the AVERAGE price of 16% or so between the two halves of the year, but as you can see, this doesn't mean prices have gone up by this amount for ANY of the price bands, indeed the lower price bands have gone DOWN in price, and those at the higher end have increases of barely 1.00%.....

If this is a SMALL amount of skew in the figures, then we need to revise the dictionary definition of 'small' ....

googler

If the forum would show my carefully-arranged tabs and spacings, it would be a lot clearer.....