How can we get the housing market moving?

shortchanged_2

http://www.bbc.co.uk/news/business-19989028

Even with a greater choice of mortgage products there is still little appetite for house buying at present.

So what does that tell everyone?

chewmylegoff

shortchanged wrote: »

http://www.bbc.co.uk/news/business-19989028

Even with a greater choice of mortgage products there is still little appetite for house buying at present.

So what does that tell everyone?

gross mortgage lending down 15% on a year ago. ouch.

Mrs_Arcanum

Until people are in reliable employment a Mortgage is just too risky.

Get more people working, more people will be able to buy and less people on benefits. = Healthier economy.

CLAPTON

The council of mortgage lenders are not exactly the most independant and neutral source of opinions.

I do, however think that the housing market is limited by

-deposits required

-consumer resistance due to
a. concern about job and income security
b. concern that house prices will fall
c. that even if prices don't fall there is no rush as prices will flatline for a time

and
-the hidden taxes on newbuilds means that at the FTB end of the market newbuilds are a very bad deal (expensive and/or very small).

It's difficult to assess the true level mortgage availability but several of my relatives and several offspring of my friends have had no difficulty in getting a mortgage as very competitive interest rates.

shortchanged_2

CLAPTON wrote: »

-consumer resistance due to
a. concern about job and income security
b. concern that house prices will fall
c. that even if prices don't fall there is no rush as prices will flatline for a time

Do you think that more and more people are slowly realising that houses are overpriced and are thus reluctant to pay the current prices?

CLAPTON

shortchanged wrote: »

Do you think that more and more people are slowly realising that houses are overpriced and are thus reluctant to pay the current prices?

I think the correct price is that which a willing seller and a willing and able buyer agree on.

More and more people are concerned about what other people think that price might be.

shortchanged_2

CLAPTON wrote: »

I think the correct price is that which a willing seller and a willing and able buyer agree on.

More and more people are concerned about what other people think that price might be.

Which is of course quite right but the figures speak for themselves really don't they in that sellers obviously want too much for their properties hence the low level of transactions.

Graham_Devon

shortchanged wrote: »

http://www.bbc.co.uk/news/business-19989028

Even with a greater choice of mortgage products there is still little appetite for house buying at present.

So what does that tell everyone?

As I've said numerous times, concentrating on trying to pump more debt into the economy simply isn't working.

Business don't want it (not the ones that can access it).

Households don't want it either, as FTB's or in many cases, second movers simply can't see value for money. They see massive, "noose around neck" debts, for little in return. Gone are the days that people simply took the debt to clamber into whatever they could as HPI meant it was a springboard to the next property.

The people who probably DO want to move from one house to another desprately, probably can't get the debt simply because they have too much debt and not enough house already.

People now have to look at taking on a massive mortgage, and actually pay it down, without HPI growth.

People therefore don't want it, and no matter how "cheap" the interest rates are, the value for money simply isn't there for people.

the_flying_pig

CLAPTON wrote: »

[in response to a suggestion that housing is "overpriced"] I think the correct price is that which a willing seller and a willing and able buyer agree on...

that's not a very helpful definition.

it implies that no good or service that anyone ever, in the history of time, bought "willingly was ever overpriced.

i'd say that one needs to dig a little deeper than that.

ILW

the_flying_pig wrote: »

that's not a very helpful definition.

it implies that no good or service that anyone ever, in the history of time, bought "willingly was ever overpriced.

i'd say that one needs to dig a little deeper than that.

Define "overpriced".

lisyloo

that sellers obviously want too much for their properties hence the low level of transactions.

It sounds like you are coming from a buyers perspective.
The alternative is to say that buyers want to pay too little.

You could say sellers want too much to sell quickly, but they are entitled to wait as long as they want and ask for whatever they want, that's a sellers choice. It's a buyers choice to walk away if they want.