Supply Falling Faster than Demand....

davilown

mind you, 'round my way' there are loads more house up for sale and the prices are dropping day by day. 7 that have been on market for less than 2 months dropped 10% this week. Admittedly, previous prices are not yet known as I can't be a**ed to check them:D

Malcolm.

the_flying_pig wrote: »

(1) demand and supply are both functions of price. other things being equal as prices fall supply gets less and demand gets more.
(2) if changes to an exogenous factor [i.e. not price - this is the kind of mistake i'd rap a child across the knuckles with a metal ruler for making if i were a GCSE economics teacher] cause a fall in demand then, at the new equilibrium, both price and quantity will be lower.

So if we build enough homes, extrapolating the line, they're all worthless...
What a silly graph indeed.

the_flying_pig

Malcolm. wrote: »

So if we build enough homes, extrapolating the line, they're all worthless...
What a silly graph indeed.

yeah i think that's pretty much right... but it would have to be a ridiculously large number, e.g. enough so that every person in the country had two or three each... house prices obviously would be close to zero in such circumstances.

house prices in the very worst parts of depopulating US cities like detroit are very close to zero.

Exocet

Malcolm. wrote: »

So if we build enough homes, extrapolating the line, they're all worthless...
What a silly graph indeed.

But surely if the erogenous factor does eventually dissipate, then the level of Pi related to the frequency of Hamish's posts could lead to the discovery of perpetual motion?

Malcolm.

Exocet wrote: »

But surely if the erogenous factor does eventually dissipate, then the level of Pi related to the frequency of Hamish's posts could lead to the discovery of perpetual motion?

I'm not so drunk that I can't recognise b0llox when I see it.

Wow, that brings back memories of my last trip to Brighton.

Wookster

What do you see down there Hamish?

Malcolm.

Wookster wrote: »

What do you see down there Hamish?

My guess would be sand.

neverdespairgirl

I don't see anything in the OP about demand, only supply.

DaddyBear

HAMISH_MCTAVISH wrote: »

http://www.ftadviser.com/FTAdviser/Mortgages/News/article/20100729/d0a889a8-9afb-11df-9033-00144f2af8e8/Governments-spending-cuts-impact-housing-market.jsp

Well that didn't take long.

The sheeple have learned much faster this time........:D

Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

Ahhhhhh, the sweet smell of desperation.

JonnyBravo

In July, it dropped by 2.9 per cent compared to June. This was the lowest level since January 2010.

The number of houses being put up for sale also suffered, plummeting 7.3 per cent in the month. This was the first time this year that the number of sales instructions has dropped, said Agency Express.

HAMISH_MCTAVISH wrote: »

Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

How can you establish that supply fell at three times the rate of demand from two simple percentages? Relative size of the numbers please?
Meaningless tosh with a misunderstanding of the basic maths it seems.