MSE News: House asking prices rise for third consecutive month

gingertips

problem is that people just read the headline "phew inflations on the rise, my pockets being squeezed - at least my house is increasing in value"...its the wrong message to send but its what people want to hear. Wonder what would happen if interest rates were to rise a couple of %

regbrown

gingertips wrote: »

problem is that people just read the headline "phew inflations on the rise, my pockets being squeezed - at least my house is increasing in value"...its the wrong message to send but its what people want to hear. Wonder what would happen if interest rates were to rise a couple of %

ha not to those folk who are hoping beyond hope that prices fall so maybe they can eventually get on the ladder.

I personally feel this is an attempt to introduce panic in those folk who are holding off to see how the market goes. especially as every other stat suggest the complete opposite to the original wording.

cjmumto2

I also think you cannot generalise over the whole country, certainly in my area house prices have dropped alot although the odd house still gets a good price, it depends on the house. And you can get very little for the £230k mentioned in the article but more than you could a year ago.

rickbonar

Yes a friend of mine went into his local estate agents to enquire about letting his garage and was told "house prices have picked up recently". Perplexed by this statement as he thought NO way!

It is true the marketing men have been dogged by the lack of sales and the old adage of in for a penny in for £500k, you may as well ask for a million .. why not? you never know Elton John or Madonna might need a modest semi to hide away from the paps.

The article with the words "The asking price" ... kind of says it all.

You might win the lottery too

regbrown

a while back I looked at a house and it was up for 175k. had a look around and seemed ok, first question I always ask, how much movement on price. answer, oh a lot!

in my area if the house is priced smartly then they are selling at a trickle.

the new builds on the other hand are priced and such ludicrous levels its amazing and they will budge very little on the price. 220k for a 2 bed terrace!!

Running_Horse

Round my way most go on for silly money, then reduce within a month, and mostly don't sell.

I know a couple of vendors who have been on the market since last year, and have given up and withdrown their properties.

Very slow market, no idea what sold prices are doing.

rickbonar

I don't really understanding what estate agents and householders are expecting?

Let's say the house market "recovers" and bang the prices go up by 10% per year ... now if average house today 2011 is £240,000 then by 2021 that house will be worth around £623,000 and a house at £800,000 worth just under £2,075,000 in 10 years at the same rate.

For a 25 year repayment mortgage on £623,000 you would need to pay the bank back £4014 per month.


A 25 year repayment mortgage on £2075,000 you need to pay the bank back £13,369 per month ..........

Here's the killer though this is calculated at the rate of 6% which they're charging today.

Now Okay they will say you could cash in at 10 years with a decent profit!

But it's quite a gamble don't you think even if you by some miracle are making such sums of money. Sorry Mr estate agent but housing benefit isn't going to make people rich anymore.

And what would the average wage be in 2021, I wonder?