MSE News: House prices down 1.2% over year, says Halifax

MobileSaver

The_Earl_of_Streatham wrote: »

So, help me out, do you or do you not think it's about supply and demand?

Are you ruggedtoast in disguise? He's not too bright either. :rotfl:

As I categorically state in the very post you quoted, supply and demand is a factor but it is not the only factor. It's really not rocket science.

MobileSaver

The_Earl_of_Streatham wrote: »

there is never capital appreciation in property, there is just more money to buy it.

What a ridiculous thing to say, the very definition of capital appreciation is a rise in price.

My girlfriend just sold her house and moved in with me, I'll have to tell her the £130k capital appreciation was a figment of her imagination according to the Earl of Streatham, what should I tell her to do with all that money sitting in her bank account? :rotfl:

Lizling

MobileSaver wrote: »

As I categorically state in the very post you quoted, supply and demand is a factor but it is not the only factor. It's really not rocket science.

Supply and demand ARE the only factors in any sale. You can't sell anything if the seller and buyer can't agree a price and anything that affects that price is either a supply or a demand side factor.

Increasing population? Demand side factor
Trend towards people living alone? Demand side
Foreign investors getting their money out of the Eurozone? Demand side
Too many people wanting to live in London compared to the rest of the UK? Demand side
Builders sitting on their land instead of building? Supply side
Lack of space that can be built on? Supply side
People reluctant to sell because they can't afford somewhere bigger? Supply side
etc.

Not rocket science. Just basic economics.

brit1234

Lizling wrote: »

Supply and demand ARE the only factors in any sale.

Liz do you believe in economic bubbles?

If you do, do you think the London housing market is one big bubble ready to pop?

Turnbull2000

Prices surged 3.5% in October. Headlines tomorrow.

They'll likely level off again next month of course, but once the credit taps open and government intervention becomes completely entrenched, we could be in for some large rises within as little as a couple of years IMO.

You also have to consider that population growth continues at around a quarter million each year, house building will likely remain at 100,000 or less for a long while yet (and perhaps permanently lower than required), and there's a level of pent up demand that's probably unprecedented in history.

Lizling

brit1234 wrote: »

Liz do you believe in economic bubbles?

If you do, do you think the London housing market is one big bubble ready to pop?

Isn't that a bit like asking if I believe in gravity? :rotfl:

I do think the most expensive bits are definitely in a bubble because that's being driven by foreign investment, which is far more fickle than people's demand for homes.

In the normal areas of London though, I can't see them coming down much until people stop wanting to live in London, and that'll only happen if it stops being where the jobs are or the population falls significantly. In fact, I think there's so much unmet need for housing at the moment, that once this recession ends or mortgage lending criteria relax, London prices will rise even faster.

Edit: in other words, what Turnbull said. I hadn't read his reply before writing my own or I would just have written '^that'

Turnbull2000

Chelsea and Kensington is up nearly 10% in October, with residents 'enjoying' a £200,000 gain in just 5 weeks.

A few others also managed 6-7%.

Seems the Indy are also heralding these figures. Wonder what the other papers will make of it?

breadlinebetty

It isn't just the super rich who want to invest in London, it's also Joe Bloggs Stavros from Greece (amongst other Eurozone countries) who are desperate to buy in London in order to keep their money safe. Greeks, Italians, French, Spanish etc....lots of Euopean families are doing everything they can to pool their recources and buy in London - even if they only have £400k to invest - they cetainly don't want to lose it in the Eurozone!!

The ones with less to invest than the super rich obviously can't buy in Cental London, so they're looking at all of Geater London and its suburbs. Big money investment has a trickle effect........

It's like 30 years ago when Chelsea was only for the rich and Battersea was a dump. People who couldn't afford Chelsea bought in Battersea - and then that too brought the area up and pushed up prices. Then from Battersea it spread to Clapham, then to Balham, then to Tooting.....and so it goes on right through to the greenbelt borders of Surrey, Hertfordshire, Kent etc - which always cost a fortune anyway.......

Anywhere within the M25 and you can guarantee your investment.

rickbonar.

Turnbull2000 wrote: »

Prices surged 3.5% in October. Headlines tomorrow.

They'll likely level off again next month of course, but once the credit taps open and government intervention becomes completely entrenched, we could be in for some large rises within as little as a couple of years IMO.

You also have to consider that population growth continues at around a quarter million each year, house building will likely remain at 100,000 or less for a long while yet (and perhaps permanently lower than required), and there's a level of pent up demand that's probably unprecedented in history.

"Surged" ... ?

What's the betting they'll go down next month?

Large rises maybe in asking prices but who is going to be buying flats and houses in the £1 million range?

Unless the public gets £65 an hour minimum wage I can't see how they're going to do it.

breadlinebetty

rickbonar. wrote: »

"Surged" ... ?

What's the betting they'll go down next month?

Large rises maybe in asking prices but who is going to be buying flats and houses in the £1 million range?

Unless the public gets £65 an hour minimum wage I can't see how they're going to do it.

"Large rises maybe in asking prices but who is going to be buying flats and houses in the £1 million range?"


People who ae already property rich and want to move up the ladder......

There's plenty of people with half a million pound deposit.....:money: