Real terms house price falls - what is "real"

geneer

robmatic wrote: »

You really are getting yourself in a logical contortion with this real term falls position that you've adopted.

What, that real term falls benefit those who bought after the crash as much as those who bought near peak? Seems quite logical to me.

robmatic

geneer wrote: »

What, that real term falls benefit those who bought after the crash as much as those who bought near peak? Seems quite logical to me.

And implies that those who bought near peak or before peak or whenever aren't negatively affected by real term falls.

Feel free to keep on crowing about them though.

paulmapp8306

geneer wrote: »

Sorry. Anecdotal of 1 counts as "many" does it.

Of course not. Just saying the public sector have not had wage rises in line with inflation over the last 3-4 years, and at least some of the private havent.

That means - to me at least - more have not had such rises as have. if you have - then good for you, but you are in the minority.

geneer

paulmapp8306 wrote: »

Of course not. Just saying the public sector have not had wage rises in line with inflation over the last 3-4 years, and at least some of the private havent.

That means - to me at least - more have not had such rises as have. if you have - then good for you, but you are in the minority.

RPI was in fact negative for much of 2009.
All I'm saying is, on balance, average salaries have kept up with RPI...until recently.


If it becomes clear that we are in a true inflationary spiral, wages are going to be going up too.

paulmapp8306

geneer wrote: »

RPI was in fact negative for much of 2009.
All I'm saying is, on balance, average salaries have kept up with RPI...until recently.


If it becomes clear that we are in a true inflationary spiral, wages are going to be going up too.

I hope so - kind of, however wages in the public sector arnt going up any time soon regardless of what inflation does.

geneer

paulmapp8306 wrote: »

I hope so - kind of, however wages in the public sector arnt going up any time soon regardless of what inflation does.

Hmmmm. We shall see.
I actually expect wages in the already overstretched public sector will be the first to go up. For the obvious reasons.

robmatic

robmatic wrote: »

And implies that those who bought near peak or before peak or whenever aren't negatively affected by real term falls.

Feel free to keep on crowing about them though.

Okay, you can have more time to think about it if you're struggling.

IveSeenTheLight

geneer wrote: »

STOP THE PRESS!
The world really should know about this.

you missed this part of the quote

IveSeenTheLight wrote: »

Of course from a property purchase persepctive, those with higher than average increases will be better placed to afford / buy property.

I guess given your style, bitterness and previous posts, we can deduce which side of the line you fall under.

Nevermind

geneer

IveSeenTheLight wrote: »

you missed this part of the quote



I guess given your style, bitterness and previous posts, we can deduce which side of the line you fall under.

Nevermind

No, I saw it Light.
But I really wanted to spread the earthshattering news about how averages work. The internet really needs to know this. :T

You're right of course. Those who earn more money have more money to spend. Who would have thought it.
Its like you've cracked the da vinci code.

Cleaver

geneer wrote: »

This ain't the street Cleaver.

Indeed, which was exactly my point. People on here understand your text, but everyday normal people would not have a clue what you're going on about.

geneer wrote: »

I also imagine that if someone who utterly failed to even admit the possibility of a crash attempts to claim victory in the wake of a crash, your average bod from the street would wet themselves laughing.

Your average bod would look quizzical and ask you politely what you meant by 'victory'? No one on the real world talks about bull or bear victories, as they haven't ever heard of these concepts. They'd probably be really surprised to hear that a few people have spent the last few years logging in to niche forums scoring 'victories' over each other by defining whether fall in an asset price is a crash or not.

Simply put, normal people in the real world don't "claim victory in the wake of a crash." It's a concept that makes no sense outside of this tiny forum and that housepricecrash website.