Supply Falling Faster than Demand....

System

JonnyBravo wrote: »

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.

I guess as supply has been higher than demand recently, a 1% drop in supply would be more than a 1% drop in demand.

So it's probably more than 3 times

chucky

JonnyBravo wrote: »

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.




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.

he's derived it from two different sources

supply from July's Rightmove was that amount less than June's figures. somehow he's worked out his %.

Emy1501

Not sure how much you can take from a survey based on for sale and sold signs to be honest. Also in another piece these lot say the number of houses coming on th market is 60%+ compared to same time last year whilst sales are down nearly 4%.

Also with rightmove saying their are 5 new properties for every 2 mortgage approvals I'm not sure demand is going to meet supply in the near future.

of course question will be exactly why sellers need to sell and how many of them would be happy to sell at lower than todays price. A suvery regarding sellers attitudes would be good.

Spartacus_Mills

Graham_Devon wrote: »

Fair point.

So tell us, what happens.

Then we'll revisit this thread next month when the actual results of what is happening are in and nationwide release another update.

What is happening is prices are actually falling. Demand has to be seen in conjunction with ability to pay.

chucky

Spartacus_Mills wrote: »

Demand has to be seen in conjunction with ability to pay.

you best explain that - it's lost to many on here, along with what effective demand means...

JonnyBravo

Joeskeppi wrote: »

I guess as supply has been higher than demand recently, a 1% drop in supply would be more than a 1% drop in demand.

So it's probably more than 3 times

Probably.
I could make up an equally fatuous argument for the opposite.


Ultimately if prices are dropping, and they are, then clearly his figures ARE wrong. Unless he now doesn't believe the supply and demand stuff he's been ranting on about.