Homeowners expect prices to rise

Graham_Devon

More homeowners expect property prices to rise rather than fall in the coming year, two separate studies have found, despite house sales stuttering and the dour economic outlook.

According to the latest quarterly Halifax Housing Market Confidence tracker, 34 per cent of householders thought the average UK house price would rise over the next year, with 19 per cent predicting a drop.

In a separate property market sentiment report by property website Zoopla, 63 per cent expected values to rise in the next six months, with 18 per cent predicting falls in the same period.

1. I must stop creating threads today.

2. Some lil factoids..

Men are more confident than women, with 38 per cent of men expecting increases, falling to 32 per cent of women.

And this one surprised me!

The young are more optimistic than the older generation for house price increases, with those in the 16-24 and 25-34 age bracket expecting values to go up – in contrast, those aged between 45-54 have the least positive outlook for prices.

I'm guessing what the young homeowners are really suggesting here is that they need prices to rise more than anyone else, so are optimistic that they will...whereas those who have had their home for longer, don't need the price to increase for financial purposes.

Makes a mockery of the survey really.

http://www.thisismoney.co.uk/money/mortgageshome/article-2175850/Upbeat-homeowners-expect-property-prices-rise-despite-gloomy-economic-outlook.html

shortchanged_2

Does the article also state that the people who expected property to rise had property as some form of investment?

The-Joker

shortchanged wrote: »

Does the article also state that the people who expected property to rise had property as some form of investment.

Its a bit like saying those who have taken on too much debt hope property prices rise and interest rates do not go up too much before they lose their job!

Graham_Devon

They asked some gold investors if they thought gold would rise or fall in price.

Apparently 96% of those owning gold suggested that it would rise in price, and it's a brilliant time to buy at the moment.

wotsthat

Graham_Devon wrote: »

I'm guessing what the young homeowners are really suggesting here is that they need prices to rise more than anyone else, so are optimistic that they will...whereas those who have had their home for longer, don't need the price to increase for financial purposes.

New entrants are bound to be more optimistic because they've, very recently, made a decision that buying a house is worthwhile otherwise they wouldn't have bothered.

No suggestion that they need prices to rise.

Graham_Devon

wotsthat wrote: »

New entrants are bound to be more optimistic because they've, very recently, made a decision that buying a house is worthwhile otherwise they wouldn't have bothered.

No suggestion that they need prices to rise.

What? You are falling over your two left feet here.

You firstly suggest new buyers are more optimistic because they have just bought their home....fine. But this is about whether they think prices will rise.

You then suggest they wouldn't have bought if they didn't think it was worth it. So, like the true cheerleader you are, you have suggested the only reason they would buy is if prices would rise to "make it worth it" and have therefore stated they think prices will rise. You completely ignore the "having a home" part of it.

To "make it worth it", they therefore need prices to rise. You stated it youself. Those are not my words.

chewmylegoff

it's not really that surprising that people think that property will rise in price, because they are told every month in the press that it is rising in price, when the press reports the HPI indices showing YoY +ve.

(whilst you may say that many regions are falling in price, the average is +ve, and therefore it is no surprise that the average of all opinions comes out +ve too).

antrobus

Graham_Devon wrote: »

Homeowners expect prices to rise

I expect people who've bought gold, expect gold to go up in price as well. And so forth and so on.

spadoosh

wotsthat wrote: »

New entrants are bound to be more optimistic because they've, very recently, made a decision that buying a house is worthwhile otherwise they wouldn't have bothered.

No suggestion that they need prices to rise.

Surely they dont need prices to rise. People new to the market aren't getting 100%LTV in fact a year ago you were lucky if you were getting 90%LTV

That minimum of 10% has got to be a good buffer. I think it would be something big to knock 10% off property prices overnight or even over 5 years (imo)

Growing population + reduced availaibility = price rise

Economics 101! Supply and demand. Fair enough over short term (next few years im not expecting price rises, maybe a v mall growth but nothing major or nothing lik that was seen early 2000's) might not be brilliant. Long term they have to increase unless something happens that has never happened before or you paid riddiculously over the odds for the property.

chewmylegoff

shortchanged wrote: »

Does the article also state that the people who expected property to rise had property as some form of investment?

there is a clue in the thread title!

wotsthat

Graham_Devon wrote: »

What? You are falling over your two left feet here.

You firstly suggest new buyers are more optimistic because they have just bought their home....fine. But this is about whether they think prices will rise.

You then suggest they wouldn't have bought if they didn't think it was worth it. So, like the true cheerleader you are, you have suggested the only reason they would buy is if prices would rise to "make it worth it" and have therefore stated they think prices will rise. You completely ignore the "having a home" part of it.

To "make it worth it", they therefore need prices to rise. You stated it youself. Those are not my words.

If you survey BMW owners you'll get the same effect. In general BMW owners will be enthusiastic because, well, they did their research and it was a BMW they decided on. Ask someone who drove a nice shiny BMW home the previous day and they'll be more enthusiastic than the average.

I hate to be the bearer of bad news Graham but when people buy houses there will be some, the horrid ones, that hope they go up in value. It helps with the post purchase justification.

Not many people will buy a house and hope it falls in value unless they're very special;)