When interest rates to go back to normal many more distressed sellers?

Bigdeflationfirst

Exactly right, the public always chase yesterdays investment. The market moves in cycles we just had the boom, now the bust is next, it takes years to play out though. The public will continue chasing property all the way down to the bottom. History repeating.

RenovationMan

Bigdeflationfirst wrote: »

Exactly right, the public always chase yesterdays investment. The market moves in cycles we just had the boom, now the bust is next, it takes years to play out though. The public will continue chasing property all the way down to the bottom. History repeating.

If enough people invest in an asset class, it goes up not down.

Bigdeflationfirst

True and if cheap easy credit is no longer available you can say " When enough people stop investing in an asset class it goes down not up"..........

RenovationMan

Bigdeflationfirst wrote: »

True and if cheap easy credit is no longer available you can say " When enough people stop investing in an asset class it goes down not up"..........

Didn't we just cover this? You agreed that there was huge pent up demand and you also agreed that very few are held back by HPC dogma.

As far as cheap credit is concerned, I bought in 2010 and have never had a cheaper mortgage rate. I've been a home owner since 1995.

I can't imagine a more uncertain time financially than this one and I've seen a few recessions, starting in the 1970s when I was a kid. Yet we see a 1% YoY increase on the NW index. What else can happen financially to cause a housing crash? What could be worse than now?

Bigdeflationfirst

RenovationMan wrote: »

Didn't we just cover this? You agreed that there was huge pent up demand and you also agreed that very few are held back by HPC dogma.

As far as cheap credit is concerned, I bought in 2010 and have never had a cheaper mortgage rate. I've been a home owner since 1995.

I can't imagine a more uncertain time financially than this one and I've seen a few recessions, starting in the 1970s when I was a kid. Yet we see a 1% YoY increase on the NW index. What else can happen financially to cause a housing crash? What could be worse than now?

I never agreed there is pent up demand. There are over a million empty homes in the UK, oversupply and not much real demand. It does not matter how many people would like to buy a vertain house, all that matters is how many can raise the asking price.

Bigdeflationfirst

RenovationMan wrote: »

Didn't we just cover this? You agreed that there was huge pent up demand and you also agreed that very few are held back by HPC dogma.

As far as cheap credit is concerned, I bought in 2010 and have never had a cheaper mortgage rate. I've been a home owner since 1995.

I can't imagine a more uncertain time financially than this one and I've seen a few recessions, starting in the 1970s when I was a kid. Yet we see a 1% YoY increase on the NW index. What else can happen financially to cause a housing crash? What could be worse than now?

That is my point we still have cheap easy credit, you said it yourself, its the cheapest ever. This can not and will not last.

What could be worse than now? Well one thing would be return to normal interest rates and an end to easy credit. Then auction house full of repossessions like never before.

The_White_Horse

easy credit has been hard to come by for the last few years, yet house prices near me (including next door neighbour who sold 4 months ago) are rising (in London). So, how do we explain that?

Bigdeflationfirst

The_White_Horse wrote: »

easy credit has been hard to come by for the last few years, yet house prices near me (including next door neighbour who sold 4 months ago) are rising (in London). So, how do we explain that?

I disagree, we still have easy credit compared to how things will be in a few years.

RenovationMan

Bigdeflationfirst wrote: »

That is my point we still have cheap easy credit, you said it yourself, its the cheapest ever. This can not and will not last.

What could be worse than now? Well one thing would be return to normal interest rates and an end to easy credit. Then auction house full of repossessions like never before.

When will cheap credit end? When will interest rates return to normal?

Bigdeflationfirst

RenovationMan wrote: »

When will cheap credit end? When will interest rates return to normal?

The coming banking crisis will make cheap credit a thing of the past, you aint seen nothin yet!