U.K. Home Prices Decline as Outlook Worsens, Hometrack Says

Graham_Devon

ukcarper wrote: »

But now we are getting at the root of the problem a 2-bed terrace is not good enough for two people on median salaries. The average price of a semi is £153 so with a 95% mortgage they would need a 3x joint not unheard of before the boom. They would take home about £3.2k a month and their mortgage at 6% would be about £977 so hardly unaffordable I would say.

And 1 kid screws your theory up entirely.

Kids simply don't seem to exist in the eyes of a bull! Everyones always a couple both with well paid jobs and no kiddie winks.

Graham_Devon

shortchanged wrote: »

You are even more insane than I previously thought if you genuinely believe this julieq. That really has to be one of the most bizarre things I have heard in a long time.

Do you genuinely believe that house prices would have got as high as they did if liar loans and high multiples never happened? :eek:

The fact that house prices haven't dropped that much is because of low interest rates, low transactions and a lack of forced sellers.

Julie sticks to statistics and never questions them when it comes to proving her theory. She of course get's the select the statistics.

Don't do the same though. She'll mention you all over the board in random posts just to make sure she gets her boot in at every avaliable opportunity.

And she might even claim you are sexist and a womerniser. I am, apparently. I disagreed with her, therefore I am.

Catapa

Great, a slow decrease in house prices is what the UK needs. Nothing drasting, just slowly and steadily downwards. One day young families will be able to live in houses of a comfortable again.

the_flying_pig

crash123 wrote: »

You can still get a liar loan and high multiples even today. You just have to have enough equity.
prices are still high due to low interest rates.

agreed, 3-4 times joint income mortgages are very widely avaialble to anyone with a lot of equity [i.e. anyone who bought any earlier than the mid noughties] in a way that they certainly weren't to either Hamish or his parents. So lending at the top end of the market is loose by historic standards.

DervProf

Pimperne1 wrote: »

And mortgages are significantly cheaper than they were in 2007 (at least mine is).

Mine is also much cheaper than it was in 2007, but I'm looking at the bigger picture, and cheaper property will be required to get the economy going in the right direction.

Pimperne1

DervProf wrote: »

Mine is also much cheaper than it was in 2007, but I'm looking at the bigger picture, and cheaper property will be required to get the economy going in the right direction.

Very public spirited of you.

ukcarper

Graham_Devon wrote: »

And 1 kid screws your theory up entirely.

Kids simply don't seem to exist in the eyes of a bull! Everyones always a couple both with well paid jobs and no kiddie winks.

If the woman gave up and took a median part time job they would get £2400 and that doesn’t include child benefit so still doable I would say.

ukcarper

shortchanged wrote: »

Or the average price of a 3 bed semi could come down to £130K. Now that would be better for all. A smaller mortgage, therefore more money to spend on other things in the economy.

Everyones a winner.

I wouldn’t be against property stagnating until they are equivalent to that.

Linton

Graham_Devon wrote: »

And 1 kid screws your theory up entirely.

Kids simply don't seem to exist in the eyes of a bull! Everyones always a couple both with well paid jobs and no kiddie winks.

You are still confusing the world that you would like with the world we have.

In the world (or the country) we live in there is insufficient housing for everyone to have a nice 4 bedroomed detached in a non-grotty part of the country. But there is sufficient for many 2-salary families to get one.

So what happens: the prices adjust so that the 2-salary families get their house and the 1 salary families dont.

If house prices miraculously halved so that 1 salary families could afford the nice 4-bedroomed detached would that mean they would all get one? Even if there arent sufficient available? In the bear world apparently it would.

zcrat41

shortchanged wrote: »

And I think you are kidding yourself if you think there are masses of people queuing up to buy overpriced property.

There are where I live. I got outbid on a house last week. On the market for a week, 9 viewings, 5 offers, 2 cash buyers one of which paid over the asking price.