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Debate House Prices


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Mortgage plan will force house prices down, CML warns

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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    carolt wrote: »
    Oh come off it - we all know - even you and Really, no matter how much you may profess ignorance.

    Would professing ignorance not be retorting with insults instead of backing up your claims?

    I asked if you could explain why from 1992-1996 a time of stable nominal low house prices less people purchased? you are saying such times are when more can buy.
    The data points to more can buy and do buy when prices are rising.
  • Really2 wrote: »
    I agree LJ, lets face it we all know on here Self cert has been all but dead since 2008.
    Otherwise why were there so many saying they could not get mortgages.

    It is the CML playing jedi mind tricks to drum up fear, they need rasons for this not to go through.

    Pretty poor jedi mind trick though eh?:) Could be counter productive, in that it appears they are trying to protect a VI, rather than look at what is best for the system.
    Really2 wrote: »
    I agree in price terms it makes it easier to buy, so the theory is there.

    But the reality is, it is a lot harder to borrow. So unless you have a massive deposit or cash, it could be a lot harder to own.

    So statisitically (and I have backed it up :)) less people can buy when prices have fallen or stagnated.

    Otherwise why would it increase as soon as prices start to rise again?:)

    Yep, but I'm not debating this!:D
    Where's HAMISH?????

    and MadnessofHPC.

    Who cares? Enjoy it whilst you can.:)
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • carolt wrote: »
    Oh come off it - we all know - even you and Really, no matter how much you may profess ignorance.

    I'm confused. Isn't the whole issue that we don't know, hence the debate?

    Even 1 of the BoE panel disagrees with the others.
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    lemonjelly wrote: »
    I'm confused. Isn't the whole issue that we don't know, hence the debate?

    Even 1 of the BoE panel disagrees with the others.

    I agree, if you look at the past, 1989-1990 prices fell prices rose a bit in 1991 they then fell back 5.5% in 1992.

    They stayed virtually the same price up to 1996, personally I think a similar situation is more than possible.

    I dare say a super imposed nominal graph (anyone bored!!)http://www.mortgageguideuk.co.uk/housing/uk-house-price-index.html
    of 1989-1996 on nominal 2007- now on would look fairly similar.

    But anything could happen in the mean time, no one knows, the past is only an indicator.
  • carolt
    carolt Posts: 8,531 Forumite
    Really2 wrote: »
    Would professing ignorance not be retorting with insults instead of backing up your claims?

    I asked if you could explain why from 1992-1996 a time of stable nominal low house prices less people purchased? you are saying such times are when more can buy.
    The data points to more can buy and do buy when prices are rising.

    Prices fell in most areas post 1992 - they weren't stable.

    Moreover, you seem to be making a basic logical error of confusing times when people CAN buy with times when people DO buy.

    Less people want to buy when prices are fallling, for obvious reasons - who wants to catch a falling knife?

    Better to wait or year or two or three and buy when prices are cheaper.

    That doesn't mean they CAN'T buy.

    Rather that they WON'T buy.

    Like that well-known TV programme, CAN'T BUY, WON'T BUY. ;)
  • Really2 wrote: »
    I dare say a super imposed nominal graph (anyone bored!!)http://www.mortgageguideuk.co.uk/housing/uk-house-price-index.html
    of 1989-1996 on nominal 2007- now on would look fairly similar.

    DTJN0.jpg
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 23 September 2010 at 10:47AM
    carolt wrote: »
    Prices fell in most areas post 1992 - they weren't stable.

    Moreover, you seem to be making a basic logical error of confusing times when people CAN buy with times when people DO buy.

    Less people want to buy when prices are fallling, for obvious reasons - who wants to catch a falling knife?

    Better to wait or year or two or three and buy when prices are cheaper.

    That doesn't mean they CAN'T buy.

    Rather that they WON'T buy.

    Like that well-known TV programme, CAN'T BUY, WON'T BUY. ;)

    They were not falling from 1992 to 1996 it is there in black and white.
    So big fail there carol, care to try again.

    How would buying in 1992-1994 be catching a falling knife. Prices were nominaly the same and started rising above inflation after 1996.

    Are you confusing more people can buy when prices are lower with more people want to buy when house prices are rising.;)
  • carolt wrote: »
    That doesn't mean they CAN'T buy.

    That's rather contrary to your previous statements that everyone in the UK was now priced out of the market.

    The fact is Carol that when prices start going up again, banks will start to reduce the amount they need as a deposit. Meaning that many more will be able to buy when the market picks up.
  • Heyman_2
    Heyman_2 Posts: 1,819 Forumite
    edited 23 September 2010 at 10:52AM
    carolt wrote: »
    Prices fell in most areas post 1992 - they weren't stable.

    No they didn't, look here -

    http://www.york.ac.uk/inst/chp/hfrtable/up02043ab.PDF

    Edit: Argh - it won't let me embed!
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