House prices fall for first time in seven months

wotsthat

joe_blotts wrote: »

I remember being told in the nineties that I was overpaying as property was overpriced and 'everyone' was staying out.

I'm hearing it a lot now too - probably a good time to buy.

ukcarper

noddynoo wrote: »

It is all about to go tits up Hopefully. Every house I have viewed that has gone on to sell has become re available within weeks. Very little completing

I know of two house which have gone to completion in the last week one of which was sold within 2 weeks of going on market at what i would think some poster on here would consider overpriced.

shortchanged_2

wotsthat wrote: »

Well according to this survey they minus 0.1% in a month. Convert that to real terms and you end up with about.... minus 0.1%.

.

Well if you look at average wage inflation of around 2% it means that house prices are falling in comparison even with interest rates at rock bottom. Now you have to admit it, that doesn't look good.

wotsthat

shortchanged wrote: »

Well if you look at average wage inflation of around 2% it means that house prices are falling in comparison even with interest rates at rock bottom. Now you have to admit it, that doesn't look good.

Doesn't look good? You're kidding? I think it's great - it's the best we could have hoped for given the circumstances.

There's still chance for motivated savers to be rewarded with record affordability ratios. Hopefully it'll continue for a time yet.

How come you haven't explained how cash buyers are keeping prices 'overpriced'?

shortchanged_2

wotsthat wrote: »

.

How come you haven't explained how cash buyers are keeping prices 'overpriced'?

I did. Lack of supply means sellers can hold out combined with very few forced sellers. So if these cash buyers want to buy then they have to pay the price, simple and seeing as they have the 'readies' then they cough up what they have to.

wotsthat

shortchanged wrote: »

I did. Lack of supply means sellers can hold out combined with very few forced sellers. So if these cash buyers want to buy then they have to pay the price, simple and seeing as they have the 'readies' then they cough up what they have to.

If anything a cash buyer is more likely to get a discount as they are seen as more serious and they come without a chain. Certainly more attractive to a seller than someone with another house to sell who may or may not be able to sell and get a mortgage.

shortchanged_2

wotsthat wrote: »

If anything a cash buyer is more likely to get a discount as they are seen as more serious and they come without a chain. Certainly more attractive to a seller than someone with another house to sell who may or may not be able to sell and get a mortgage.

I can see your point but we know how stubborn sellers are able to be these days.

The_White_Horse

i think the answer is this simple - put bank base rate up to 4% tomorrow and there would be carnage.

HAMISH_MCTAVISH

joe_blotts wrote: »

And what about the boom Hamish promised us?

Look at that graphic again.....

House price behaviour from 94-96 is very similar to house price behaviour from 2011 and 2012.

And we all know what happened next the last time this pattern occurred.....

angrypirate

HAMISH_MCTAVISH wrote: »

Look at that graphic again.....

House price behaviour from 94-96 is very similar to house price behaviour from 2011 and 2012.

And we all know what happened next the last time this pattern occurred.....

You mean what happened next the last time interest rates were cut to 0.5% and hundreds of billions of pounds was artificially pumped into the economy? I didnt realise it had happened before, but anyway, I'll have a guess. All the bankers were jailed? Greece left the Euro? Spain went bankrupt? Im not sure, give me a clue?