We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

FSA- Forget lending restrictions, make banks lend more!

13»

Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    RenovationMan wrote: »
    Are they? I thought prices were stagnent for the most part?

    My reading is a very slow fall in nominal terms but a fall of (on average) 0.5% a month in real terms.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    Generali wrote: »
    My reading is a very slow fall in nominal terms but a fall of (on average) 0.5% a month in real terms.

    By real terms, do you mean due to inflation?
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    RenovationMan wrote: »
    By real terms, do you mean due to inflation?

    Yes I do..
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    Generali wrote: »
    Yes I do..

    I was hoping so because I asked a question about this on a different thread but no one seemed to want to answer. Surely a fall (or indeed rise) that is linked to inflation is no fall (or rise) at all? At least until we see wage inflation?
  • brit1234
    brit1234 Posts: 5,385 Forumite
    RenovationMan wrote: »
    Are they? I thought prices were stagnent for the most part?

    Stagnant is vested interest terminology for falling, don't believe the spin. Actual house prices are falling month after month alone with out taking inflation into account.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    brit1234 wrote: »
    Stagnant is vested interest terminology for falling, don't believe the spin. Actual house prices are falling month after month alone with out taking inflation into account.

    Brit, that is a lie, and you know it.

    House prices are only falling in around 35% of local areas.

    They are stable in 55%, and rising in 10% or so.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    RenovationMan wrote: »
    I was hoping so because I asked a question about this on a different thread but no one seemed to want to answer. Surely a fall (or indeed rise) that is linked to inflation is no fall (or rise) at all? At least until we see wage inflation?

    It depends what you want to look at. Comparing the price of an asset (e.g. a house) over time in nominal terms, real terms or vs wages are all reasonable things to do IMO. It depends what you're interested in looking at really.

    In terms of what you are interested in I think (that is your debt:house price ratio) nominal terms are most useful.

    If someone was buying a house to let out and fund their retirement upon sale then the real (inflation adjusted) price is probably more relevant.

    If you want to look at how house prices are changing vs FTB's being able to buy then house prices and mortgage rates vs wages would be appropriate (the ease of saving a deposit too right now).

    It's horses for courses.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    Generali wrote: »
    It depends what you want to look at. Comparing the price of an asset (e.g. a house) over time in nominal terms, real terms or vs wages are all reasonable things to do IMO. It depends what you're interested in looking at really.

    In terms of what you are interested in I think (that is your debt:house price ratio) nominal terms are most useful.

    If someone was buying a house to let out and fund their retirement upon sale then the real (inflation adjusted) price is probably more relevant.

    If you want to look at how house prices are changing vs FTB's being able to buy then house prices and mortgage rates vs wages would be appropriate (the ease of saving a deposit too right now).

    It's horses for courses.

    Thanks Gen, excellent detail as always.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.5K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.4K Work, Benefits & Business
  • 604.2K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture