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Debate House Prices


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Guardian takes on VI's.

Graham_Devon
Graham_Devon Posts: 58,560 Forumite
Part of the Furniture 10,000 Posts Combo Breaker
in Debate House Prices & the Economy
Lovely article from my favourite newspaper...

http://www.guardian.co.uk/money/2010/aug/10/falling-house-prices-blame-media

Need to click on the link to see the surveyor's comments.
When house prices rise, estate agents and surveyors say it's about demand. When house prices fall they blame the media
Nice to see the newspapers picking up on the fact supply and demand is only used when prices increase! :p
What appears to unite all the above commentators is the belief that house prices can never fall. They must rise for ever and ever. Only a few wicked people in the press knock the market off its one and only true path.

These are the people who embraced every daft TV programme which, over the past decade, told buyers to binge-borrow and buy whatever they could. They convinced themselves the market was an unstoppable force, and for years they were right.

But this unstoppable force has now met an immovable object. It's called the banks. They are no longer lending money willy-nilly to anybody knocking on their doors. They want huge deposits, and they will now even check whether you might have the resources to repay the mortgage. How extraordinary.

The conclusion to be reached after 10 years of madcap lending is that house prices are not a function of demand, but are simply a function of how much money the lenders are willing to advance. Almost everything else is immaterial.

With few signs that the banks are loosening the purse strings it is difficult to imagine how prices can advance much further. And "a bit of positive talk" will make not one jot of difference.
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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    When house prices rise, estate agents and surveyors say it's about demand. When house prices fall they blame the media

    When house prices rose people blamed the media, when they fell it was down to lack of demand.

    Does that sound familiar to anyone. :)
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Really2 wrote: »
    When house prices rose people blamed the media, when they fell it was down to lack of demand.

    Does that sound familiar to anyone. :)

    So you are standing behind the VI's then?

    Have you read the quotes you are hereby supporting? :)
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    So you are standing behind the VI's then?

    Have you read the quotes you are hereby supporting? :)

    No,

    But anyone from opposing sides will use opposite excuses you are just as guilty as anyone. So you are one of the VI's.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Really2 wrote: »
    No, But anyone from opposing sides will use opposite excuses you are just as guilty as anyone. So you are one of the VI's.

    No, but...... yer but, no but?
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    No, but...... yer but, no but?

    Do you need a nurse again GD, it is simple to understand what I am saying and you even pointed out yourself.

    You are a VI.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Really2 wrote: »
    Do you need a nurse again GD, it is simple to understand what I am saying and you even pointed out yourself.

    You are a VI.

    Am I?

    Expand.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Really2 wrote: »
    Do you need a nurse again GD, it is simple to understand what I am saying and you even pointed out yourself.

    You are a VI.
    give up now Really - it's one of those GD 'look at me' moments...
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    chucky wrote: »
    give up now Really - it's one of those GD 'look at me' moments...

    It's really not. It was a good article. Points very hard to refute. Surveyors looking stupid. Amsuingly written tounge in cheek stuff aimed at surveyors.

    Posting this article however, apparently makes me a VI. Which has nothing to do with the article. But since I'm being told I'm now a vested interest....as someone who owns, but would like ot see prices fall, I'd like to know how.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Am I?

    Expand.

    You have said you want house prices to fall as it makes the next step up easier for you.

    You have also blames the media for rises and pushing house prices.

    I find it madness why you want me to expand, you have a VI in housing.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 12 August 2010 at 11:41AM
    Really2 wrote: »
    You have said you want house prices to fall as it makes the next step up easier for you.

    You have also blames the media for rises and pushing house prices.

    I find it madness why you want me to expand, you have a VI in housing.

    Don't think I have once said it makes the step up easier for me....end of, I want falls. I'm sure you will find it if I have though.

    Any falls of over 5-10% are likely to put me into NE. Why would that be easier for me to step up?

    You are just making things up as you go along now. A fall in prices WOULD make it easier for me to step up, in a roundabout way, but would also put me in a sitation of paying to get out. Thats some seriouisly screwed up VI stand point.

    As I said, this thread wasn't anything about me, it's only you who turned it into such.

    Seems the usuals didn't like the article. :)
This discussion has been closed.
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