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Debate House Prices
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If prices don`t fall to 3x income, it will be the first time in history.
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And what is the average family income here? About £40k, maybe..?Mortgage | £145,000Unsecured Debt | [strike]£7,000[/strike] £0 Lodgers | |0
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Badger_Lady wrote: »And what is the average family income here? About £40k, maybe..?
There's some info here (albeit from 2008 / 2009)
http://www.statistics.gov.uk/cci/nugget.asp?id=334
With home ownership being circa 68%, you could almost negate the bottom two fifths.
I guess your £40k wouldn;t be too far wrong.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
If it was 40K (I think its less) then we are talking about 120K average house prices?
But as with all corrections they usually overshoot on the way down, who knows what the bottom will be.0 -
Llubrevlis wrote: »If it was 40K (I think its less) then we are talking about 120K average house prices?
But as with all corrections they usually overshoot on the way down, who knows what the bottom will be.
When have they undershot to below 3 x income?
Only once I've seen have the prices dropped that low a ratio in the last 27 years..
The fundamentals are much different this time as well.
It might be worth reading this document
http://www.lloydsbankinggroup.com/media/pdfs/research/2010/50_Years_of_Housing_UK.pdf
or this one
http://www.lloydsbankinggroup.com/media/pdfs/halifax/2010/FirstTimeBuyersAnnualReviewDec2009.pdf
or this one
http://www.lloydsbankinggroup.com/media/pdfs/halifax/2010/Costofhousingreleasefinal260610.pdf:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
All Im saying is that in bubbles like the one we are in, it usually overshoots at the bottom.
We are no where near the bottom yet.0 -
Llubrevlis wrote: »All Im saying is that in bubbles like the one we are in, it usually overshoots at the bottom.
We are no where near the bottom yet.
I thought the bottom was Feb 2009?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Llubrevlis wrote: »All Im saying is that in bubbles like the one we are in, it usually overshoots at the bottom.
We are no where near the bottom yet.
How can it overshoot the bottom?
I think you mean overshoots the long term trend.
That was historically and maybe, just maybe they realised how to stop it overshooting.
Much better to have a steady rate of inflation than banjoing up and down (boom and bust) above and below the trend line.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
why did you bother starting another thread on the very same topic and article that you had previously contributed too here...
https://forums.moneysavingexpert.com/discussion/2575087
Because he's a troll.....
More interestingly, what inspired them both to post a month old article from a relatively obscure publication, 'The Australian'.....
Particularly one that has done the rounds of UK house price boards once already when it was released.
Anyone care to bet it's been reposted on hpc today by one of their desperate crashaholics?
Edit: I was right, here it is....... http://www.housepricecrash.co.uk/forum/index.php?showtopic=146499“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
will we get to the stage where people who can't afford to buy , and then decide to rent cannot afford to rent because presumeably if hp keep on rising then rents will have to rise as well ,
£40k may be the average but thereare millions who areearning far less than that0 -
£40k may be the average but there are millions who are earning far less than that
And they can live in the millions of properties that cost less than the average.....
(novel concept, I know)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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