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Debate House Prices


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House prices fell by 0.5% in July - Nationwide

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Comments

  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    The trend must only be the trend because of the bubble in property prices - so if we didn't have the massive increases the trend would be lower.

    The trend teaks into accound the peaks (bubbles) and the troughs (corrections) (see the area below the trend line) over the last thirty years.

    Therefore the trend is correct including the last two cycles.
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • The trend teaks into accound the peaks (bubbles) and the troughs (corrections) (see the area below the trend line) over the last thirty years.

    Therefore the trend is correct including the last two cycles.

    So I was right - the trend is dictated by the bubbles.

    If there was no bubble the trend would be lower. So saying it is returning to trend is strange because if there was no bubble the trend would be lower.

    It all seems like nonsense to me.
  • Blacklight wrote: »
    Not really.

    60/20 = 3
    180/60 = 3

    No idea what you are saying here but I can see with my own eyes that the two peaks are different and the scales on the two separate graphs are different.

    Thanks anyway.
  • So I was right - the trend is dictated by the bubbles.
    It all seems like nonsense to me.

    The trend is not dictated by the bubbles.
    Your looking at it from only one side.

    Why discount the period above the trend and only wish to look at the period below the trend?
    If there was no bubble the trend would be lower. So saying it is returning to trend is strange because if there was no bubble the trend would be lower.

    And if there was no corrections, the trend would be higher
    It all seems like nonsense to me.
    And it seems like this has been very similarly questioned, argued and responded to before ;)
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    No idea what you are saying here but I can see with my own eyes that the two peaks are different and the scales on the two separate graphs are different.

    Thanks anyway.

    1980-1990 prices went up 3x
    2000-2010 prices went up 3x

    Of course the numbers are different as prices didn't fall by 3x between 1990-2000.

    Although for some reason, some people expect them do exactly that between 2010-2011.

    Personally I think they will do nothing, then go up 3x between 2020-2030.
  • No idea what you are saying here but I can see with my own eyes that the two peaks are different and the scales on the two separate graphs are different.

    Thanks anyway.

    Look at any compounded graph.
    you'll get the same.

    £100 earning 3% per month in month 1 would earn £3.
    After 100 months, the earnings increases to £57

    Same graph, same scale, but the compound effect makes the later timeframe appear to be higher than earlier in the graph

    Here it is in graph format if it helps
    [pic tool not working]
    http://img10.imageshack.us/img10/4809/80622127.jpg
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • A chink of light is entering into the murky depths - thanks.

    But what good does it do to look at two periods of rapid growth and ignore what is happening inbetween? Surely it must make more sense to look at as long a period as possible?
  • A chink of light is entering into the murky depths - thanks.

    But what good does it do to look at two periods of rapid growth and ignore what is happening inbetween? Surely it must make more sense to look at as long a period as possible?

    It does not ignore the area in between, it takes it into the calculation.

    Your right, it's better to have a long term to compare and that's what the long term real house price trend does. It compares over the last 30 years

    This has shown over the last 30 years (peaks and troughs) what the average annual per annum trend line is.

    They are saying that on average there was a 2.9% per annum trend in the real terms house price
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • brit1234 wrote: »


    So in reality they are taking all the equity out of your parents home so they can never move or sell. Sounds great :rotfl:
    good post brit
  • might be worth a bump. going by rightomve stats it looks like nationwide under estimated the size of fall in house prices
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