Halifax Hpi November 2010 -0.1%

Graham_Devon

Blacklight wrote: »

I don't use my finger when I read Graham, I can re-read the thread in four minutes.

Interesting that you failed you back up your observation as usual.

Yes, my point was about other threads in the past :wall:

Generali

Really2 wrote: »

It's that faster internet connection you have (even though you are half way round the world)

One place I used to work, we'd be offered free tickets for stuff if clients pulled out at the last minute. I always seemed to get in first. It was only when my email crashed one time that they found out I was the only person using a server.

StevieJ

shortchanged wrote: »

The crux of this is that the only real reason that there has not been a more significant drop in house prices is because interest rates have remained so low. This is in turn creating an artificial picture of the housing market.

If you look more at the medium to long term unless house prices drop further then there will be problems for many in the future. If you look at most of the tracker deals on offer today they are awful compared to trackers from a few years ago in that many of them are rates such as 2.39 -2.79% above the base rate. Therefore if rates go up to 4-5% many people are going to be paying 7-8% on potentially very large mortgages.

It's all a ticking timebomb I'm afraid.

Wrong, if rates rise margins will fall.

Really2

Graham_Devon wrote: »

Yup, and thats the problem, in my view, and why I still forsee massive problems ahead.

I would say stagnant lowers the problems ahead,much lower than falling prices.

A few years of stagnant prices would get people paying off debt and banks balance sheets would avoid a battering.

Ideal for stability would be increases at around inflation, but not ideal for potential FTB's.

shortchanged_2

StevieJ wrote: »

Wrong, if rates rise margins will fall.

Sorry to sound stupid but please explain.

AD9898_2

Really2 wrote: »

I wonder who is going to tell me today house prices are not stagnating (nominally).

2 Whoppers this month a -0.3% and a -0.1%, the rate of falls slowing on both indexes and YOY Nominal stagnation looks to be correct (virtually) now for 2010.
But I cant say stagnation because prices were not exactly the same for every day of the year.;)

Indeed but this is on the back of the lowest transactions for decades along with a third of boom lending, do the conclusions are this,

If you need to sell your house, putting it on the market at today's prices will probably result in no sale, all well and good if you don't have to sell, but if you have to, things can become very tough, very quickly.

These house price figures along with, very low lending and transactions prove that the only low IRs are holding back the tsunami that would demolish prices overnight as a wall of forced sellers hit the market.

Of course this is a known issue, hence a base rate of .5% and insulin at at least 4%+

1984ReturnsForReal_2

JonnyBravo wrote: »

You think Halifax have houses worth over £300000 on their books?
Didn't anyone tell you?




It's grim up north.

Do they have any?

On 15th January 2010 Halifax Estate Agencies was sold to LSL Property Services plc, who operates the estate agency chains Reeds Rains, Your Move and Intercounty. Halifax no longer offers an estate agency or lettings service.

Pete111

sarkin1 wrote: »

I think the word you are looking for is desperate not curious



https://forums.moneysavingexpert.com/discussion/2896718



Anyway good to hear stuff is now cheaper than last year

Hardly mate.

I've got a London flat that makes me a shed load as a rental and is worth 75-100k more than I paid for it and a big house in Kent with under 40% LTV that should be mortgage free within 3/4 years.

Desparate? If so then I heartily recommend it.

IveSeenTheLight

Really2 wrote: »

But I cant say stagnation because prices were not exactly the same for every day of the year.;)

You can for anyone who can comprehend the market

Generali

shortchanged wrote: »

Sorry to sound stupid but please explain.

At present there is very little competition in mortgage markets (banks don't seem to want to lend nor people borrow plus there are fewer banks than there were) and rates are generally low.

As a result, the difference between what banks borrow and lend at (the margin or spread) is pretty high historically.

Most likely, interest rates will only start to rise as the economy recovers. In that case, banks will start to compete a bit more for business and perhaps more lenders will enter the market too.

In that case, banks will look to cut their margins in order to attract business. My guess would be that an increase in base rates to 5% would increase mortgage rates by perhaps 4-4.5%.