Most are finding life far worse, so what do we need, higher house prices!!

StevieJ

ILW wrote: »

No they don't.
They just live in owner occupied properties, totally different.

Whatever, I am sure they would prefer the value of the house they live in to increase rather than fall.

molerat

PasturesNew wrote: »

Falling house prices mean people have more money to spend on other stuff.... creating jobs.

But then a lot of people won't be able to borrow more to spend on other stuff

ILW

StevieJ wrote: »

Whatever, I am sure they would prefer the value of the house they live in to increase rather than fall.

Not if they want to buy their own place and move out.

StevieJ

ILW wrote: »

Not if they want to buy their own place and move out.

Sorry, I don't understand that comment?

Percy1983

As it is my parents are happy to see prices come down as it would help there 2 children in life.

Even if it dropped 50% they it would still be worth more than they paid for it so what difference does it make?

ILW

StevieJ wrote: »

Sorry, I don't understand that comment?

Average house with two kids, both in their twenties. Would be better for all if houses were cheaper so they could both afford to move out and buy their own houses rather than having mum and dads place going up in value.

This is whwre it is very misleading to quote a figure saying 70% of people are homeowners.

the_flying_pig

Ignore Rinoa, he’s probably an estate agent, also indubitably innumerate & a disingenous pwoperdee ramper par excellence.

High house prices probably do boost consumer spending in the short run.

Imagine a downsizing elderly couple about to sell their house to a young couple [who are currently renting & have no deposit] & retire to the seaside cottage that they already own. They’re about to sell it for £100k.

Now, HPI suddenly means that the house will sell for £200k.

Relative to the ‘no HPI’ case the amount of extra spending on other things that the elderly couple can do in the rest of their lifetime has gone up by £100k.

Of course, the amount of extra spending on other things that the younger couple can do in the rest of their lifetime has gone down by £100k too.

But the old couple will probably spend the extra £100k that they’ve been able to take from the younger couple more quickly than the young couple would.

Of course, the HPI is only bringing forward spending power rather than increasing it in the long run. HPI can't create something out of nothing. But who cares about the long run eh?

The_Fox_3

StevieJ wrote: »

Whatever, I am sure they would prefer the value of the house they live in to increase rather than fall.

This is just classical

GIVE REASONS

Saying "it just would" or " because it does mate" are not intelligent reasons why rising property prices help the economy.
In my opinion you have just confirmed what an illusionary economy we have

StevieJ

The_Fox wrote: »

This is just classical

GIVE REASONS

Saying "it just would" or " because it does mate" are not intelligent reasons why rising property prices help the economy.
In my opinion you have just confirmed what an illusionary economy we have

I am referring to the views of individual householders not the effect on the economy, are you suggesting they don't (as a group) prefer rising house prices? just check the confidence surveys when prices are rising/falling. My opinion on house price effects on the economy would be a neutral in the long run, for the simple reason that no real wealth is created for most.

Rinoa

the_flying_pig wrote: »

Ignore Rinoa, he’s probably an estate agent, also indubitably innumerate & a disingenous pwoperdee ramper par excellence.

High house prices probably do boost consumer spending in the short run.

Imagine a downsizing elderly couple about to sell their house to a young couple [who are currently renting & have no deposit] & retire to the seaside cottage that they already own. They’re about to sell it for £100k.

Now, HPI suddenly means that the house will sell for £200k.

Relative to the ‘no HPI’ case the amount of extra spending on other things that the elderly couple can do in the rest of their lifetime has gone up by £100k.

Of course, the amount of extra spending on other things that the younger couple can do in the rest of their lifetime has gone down by £100k too.

But the old couple will probably spend the extra £100k that they’ve been able to take from the younger couple more quickly than the young couple would.

Of course, the HPI is only bringing forward spending power rather than increasing it in the long run. HPI can't create something out of nothing. But who cares about the long run eh?

Like most bears you're putting the cart before the horse.

On Tuesday's HUTH there was a very sound stone fronted terrace house in Burnley. In many parts of the SE it could easily sell for £300k. In Burnley ~ £19k. Developer bought it, spent £10k and it looked great.

The reason for the low price is too much supply in a town where there is little demand.

House prices won't come down until either fewer people want them or they build lots more in areas where they are needed.

And that's not going to happen anytime soon.