Britons agree property is overvalued.

iandury

What rubbish!

Depends who you put that question too.

Try asking happy contented homeonwers the same question and you will probably find that 100% do not think that their property is over valued.

Of course if you ask bitter non homeowning under achievers who blame everyone but themselves then i am sure you will get another result

wotsthat

iandury wrote: »

What rubbish!

Depends who you put that question too.

Try asking happy contented homeonwers the same question and you will probably find that 100% do not think that their property is over valued.

Of course if you ask bitter non homeowning under achievers who blame everyone but themselves then i am sure you will get another result

Foxy, get a life.

angrypirate

iandury wrote: »

What rubbish!

Depends who you put that question too.

Try asking happy contented homeonwers the same question and you will probably find that 100% do not think that their property is over valued.

Of course if you ask bitter non homeowning under achievers who blame everyone but themselves then i am sure you will get another result

I dunno.... Try asking baby boomers who have children currently struggling to get on the housing market.

PS - call me an under achiever again and I'll personally come over and deck you.:D

Cleaver

iandury wrote: »

Try asking happy contented homeonwers the same question and you will probably find that 100% do not think that their property is over valued.

I'm a happy, contented homeowner. My house isn't for sale, but if it was would worth what someone is willing and able to pay for it. It's never overvalued or undervalued, it will simply find its value if or when we come to sell it.

I could estimate a market price for it, but that doesn't really mean anything until it's sold.

Loopgames

Really2 wrote: »

I would say it helped the bottom end of aspiring owners. But supply & demand is a factor also.

I always agree with the supply and demand economics. Price goes up as demand increase...simples!

However, demand increases further if you give out financial products with the condition that you have to buy a property with it ..cue mortgages. If the number of these APPROVED mortgages increases then demand increase and ergo prices increase hence inflation in the property market. When you see that new financial products are introduced like 100%/125% mortgages, then naturally the price increases as more people have the means to demand more properties.

Take these unaffordable products out of the market then prices will do 3 things:

1) Rate of increase will slow down
2) Stagnate
3) Begin to slide (rate slow to begin with as it builds momentum on the downside)

Really2 wrote: »

It amazes me how far houses haven't fallen, if it was just easy credit it would mean they would be far lower now.

From what point are you looking at when you say 'it amazes me how far houses haven't fallen'.

The nature of a pendulum swing is it goes from one extreme to another. But as it reaches the furtherst point ie high prices..it begins to slow down its ascent and then stops at that point - then slowly picks up new speed in the other direction. We have only just about stopped. Rates are still very low and affordable so that financing our debts are artificially depressed. This is why I believe we have not seen prices go down as much. Once this changes prices will pick up speed in the declining trend.

Really2 wrote: »

Credit is tight yet houses seem oddly resilient, so the picture of easy credit being the only driver of HPI is a flawed one IMHO.

It's only a matter of time - increase your time frame from 2 years to 5 years and you will see whether this is flawed or not. We're seeing stagnation and the only fluctuations in prices are seasonal.

Really2 wrote: »

I suppose the other end of the argument is how far does lending criteria (average deposit etc) to come down before prices start to increase again when nutrallity seems to happen in the face of constricted lending and low transactions?
Would a average 10% -15% deposit put us back to above inflation HPI?

It has to go through the process of decline before we see another boom. And another boom will certainly come once we go through the bust period. It's not over yet. This is the nature of our economic cycles and we can either accept it and be prepared or deny it and get depressed about it. Of course there is a whole spectrum of emotions in between:D.

Loopgames

iandury wrote: »

Try asking happy contented homeonwers the same question and you will probably find that 100% do not think that their property is over valued.

They don't care about 'value' of their home. It's irrelevant to them. My parents own their home outright and the markets may show that the value of their home is £25k less than what they paid for it..they will not care.

It's irrelevant to those who are not looking to sell. It only matters if you are looking to buy and sell in the short to medium term.

michaels

Graham

Apparently if you ask people they also agree that petrol is overvalued and food as well...

...does this survey really prove anything?

twadge_face

Cleaver wrote: »

I'm a happy, contented homeowner. My house isn't for sale, but if it was would worth what someone is willing and able to pay for it. It's never overvalued or undervalued, it will simply find its value if or when we come to sell it.

I could estimate a market price for it, but that doesn't really mean anything until it's sold.

This nails it.

This is why most people don't give a turd.

My sympathies lie with the impoverished FTBs, however. And I find the aggressive self-justifying immoral bulls who have a major vested interest in exploiting those less well-off than themselves somewhat in poor taste.

Nothing wrong with renting, of course, but the sector does need reform. We (the UK) need a model more like Germany, both in accommodation and attitude... it's disgusting how people look down on those in rented.

There shall be riots on this matter one day. Mark my words.

Really2

Loopgames wrote: »

I
From what point are you looking at when you say 'it amazes me how far houses haven't fallen'.

I had down a 30 -35% drop from peak without a nominal return to peak for at least 8 years after.
I had 2009 as a falling year.

I have this year down as a 5-7% falling year.

I am constantly overestimating the fall in house prices, yet on here I am a bull.

Like I said if you only look at the 3.5X wage, easy lending etc houses seem like they should have fallen further.
House prices are far more stable than any of us thought and fell by less than we all thought.
The mechanics of the market and prices goes a lot deeper than just the headline maths, there is still something holding prices up.
Something a lot on here people do not want to admit is true, that prices have it a nutrality point a lot higher than expected, that is mot probably over estimated supply and under estimated demand.

Loopgames wrote: »

I
It has to go through the process of decline before we see another boom. And another boom will certainly come once we go through the bust period. It's not over yet. This is the nature of our economic cycles and we can either accept it and be prepared or deny it and get depressed about it. Of course there is a whole spectrum of emotions in between:D.

Overlay 1989-1996 and there seems to be far more similarity to that than you think. I think a second leg down looks less and less likely by the day. (may have mis read you but I have us down for exiting bust late 2013,early 2014)

Batchy

demand ...

and supply

we have pent up demand... those who want it so bad, but cannot make it happen.

over time... they will trickle in

It will stop dramatic falls...