Hometrak: +0.2% MOM. Supply exceeding demand

chucky

Thrugelmir wrote: »

Suggests that pressure on prices remains firmly downward.

Interesting that this pressure is firmly downwards but prices rose 0.2%.

brit1234

The_J wrote: »

Can you not read? The chap said "Mortgages are freely available for everyone, just not at the prices people want to sell their houses at"

I don't see an issue about mortgage availability. I have a large deposit but it is the too high asking prices that stop me. Even if 100% mortgages came back I don't see how someone on my wages could afford property as I have £60k advantage over them and I am priced out.

The only way to get people on to the ladder is return to liar loan/self certs where people can inflate their wages 100% or more.

No the problem is not mortgage rationing but overvalued prices.

The_J wrote: »

Which is false in my experience. People want to buy they just can't get the mortgage at the LTV they want. In a way it is "rationing" although that is a stupid word suggesting there is a shortage of some kind.

The only shortage there is is there is not enough savers money to support artificially high prices. You being a so called financial expert how would you repair the banks balance sheets and increase their savings?

The_J wrote: »

Stop being stupid Graham, you're becoming typecast.

The insults continue, who does that remind me of?

Who has been sewing 2 beads onto a sock again?:think:

chucky

brit1234 wrote: »

I don't see an issue about mortgage availability.

When you realise that you are not the mortgage market then it may become a little bit clearer for you. Lenders have limited funds, it's not treally the issue that people can't get mortgages because people clearly can.

The_J

brit1234 wrote: »

I don't see an issue about mortgage availability. I have a large deposit but it is the too high asking prices that stop me. Even if 100% mortgages came back I don't see how someone on my wages could afford property as I have £60k advantage over them and I am priced out.

You are priced out? You could buy a house with that deposit in certain parts of the country. Oh, you can't afford where you want to live, you have delusions of grandeur and believe you "deserve" better?

You're in the police, you should be living in council accommodation until you retire when you get a semi decent pension. Since you have essentially been overpaid 60k/stolen 60k of taxpayers money I have little sympathy. Public service?

The only way to get people on to the ladder is return to liar loan/self certs where people can inflate their wages 100% or more.

No, the only way to get more people on to the ladder is to reduce prices. Unfortunately you cannot force that. My personal opinion is that home ownership is not a right and most people would do fine renting their entire lives.

No [STRIKE]the[/STRIKE] your problem is not mortgage rationing but overvalued prices.

Fixed that for you.

Overvalued? In a capitalist market? Unlikely. The problem is expensive prices and limited supply.

The only shortage there is is there is not enough savers money to support artificially high prices. You being a so called financial expert how would you repair the banks balance sheets and increase their savings?

Trust me, there is no shortage of savings in certain quarters. Who is lending to Governments?

Who has been sewing 2 beads onto a sock again?:think:

I have no idea what this means.

the.ciscokid

HAMISH_MCTAVISH wrote: »

But if they all had the deposit, then there wouldn't be enough mortgages for all of them.

The banks would have to move the goalposts yet again, so as to reduce the pool of borrowers to match the pool of funding.

So it is rationing.

Obviously.

No, it is called a market.

Generali

The point that is being missed I think is that everything that people want has to be rationed in some way or another. You can have a water meter or a hosepipe ban but both are forms of rationing.

Mortgages were being rationed during the boom and are now, during the GFC. It's just now that there is less money available for mortgages than before so the rationing is getting tougher.

If you want to blame anyone for that, I suggest you go for your pension fund trustees and others who will no longer invest in mortgage backed securities, CDOs etc. Savers simply can't put up the money that is required to keep mortgage lending where it was, especially as Basle III means even their limited funds need to be held back as regulated reserves to a larger degree.

chucky

abaxas wrote: »

I wish people wouldn't keep lying and using the term 'mortgage rationing'.

Mortgages are freely available for everyone, just not at the prices people want to sell their houses at. People are firmly ready to buy, just the vendors dont want to sell.

That's not true, mortgages aren't freely available to children. Mortgages are freely available to people who qualify to get a mortgage, at no time in history has everyone been able to get a mortgage.

Houses are selling on average in less than 10 weeks at 93% of asking price so people are buying at the right prices. There aren't enough people to buy and won't be for a while yet, there's the problem.

nollag2006

House prices pointing up a couple of points?

Sarah certainly agrees...

Graham_Devon

HAMISH_MCTAVISH wrote: »

But if they all had the deposit, then there wouldn't be enough mortgages for all of them.

The banks would have to move the goalposts yet again, so as to reduce the pool of borrowers to match the pool of funding.

So it is rationing.

Obviously.

Therefore mortgages are ALWAYS rationed. Always have been, always will be.

Generali

Graham_Devon wrote: »

Therefore mortgages are ALWAYS rationed. Always have been, always will be.

Aren't you both arguing the same point, i.e. that mortgages are rationed?