House prices fall: BBC front page - whats happening?

IveSeenTheLight

nearlynew wrote: »

House prices have been falling for quite a while now and are lower than they were this time last year.

The published figures suggesting otherwise are just spin and bullsh1t.


100% guaranteed.

You said the above on another thread.
Quite an appropriate response I thought.

Dan: wrote: »

100% bullsh1t, as usual.

Wookster

IveSeenTheLight wrote: »

One thing for sure, the market set's the rates

This is only partly correct. In the case of the rental market, yes, the market sets the rate. But with regard to sales, this is fundamentally not true at the moment. There is enormous pressure on banks not to repossess even when people are 6+ months in arrears, interest rates are abnormally low, not to mention massive QE.

If there was a truly free market, house prices would definitely be more appropriately priced.

IveSeenTheLight

Wookster wrote: »

This is only partly correct. In the case of the rental market, yes, the market sets the rate. But with regard to sales, this is fundamentally not true at the moment. There is enormous pressure on banks not to repossess even when people are 6+ months in arrears, interest rates are abnormally low, not to mention massive QE.

If there was a truly free market, house prices would definitely be more appropriately priced.

Whether it's a free market or not.
Whether parent provide additional deposits or not.
Whether banks lend higher LTV's and lower rates or not.

It is still the current market and the prices are set with those fundamentals

You could argure that house prices would be far lower if the ease of credit in the last 30-40 years didn't happen, but that was the market.
If it did return to a period before credit was available, you'd see even far less homeowners