How can we get the housing market moving?

CLAPTON

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.

It is a very very very good starting point to the question of 'what is the right price'?

However I do agree that there are times when bubbles develop when all rational thinking seems to go out the window.

So, if one see lots of people (supported by loads of rubbish newspaper/TV articles and with government support) buying 'off plan' with a view to selling before completion at a massive price hike, then one smells a bubble.

Or if one looked at the situation is Spain or Ireland where massive house building was taking place that any normal person would see was a bubble waiting to burst.

However in the current UK market I don't see any obvious signs of a bubble and certainly see no massive over supply (except maybe in a few inner city flats developments and maybe top end London prices).

I've already posted my views on the 'quiet' state of the housing market.
I don't know the 'right' price of any particular house and maybe price overall will fall, flatline or rise slightly.
However, unless there is a more marked economic down turn I won't expect the general level of house prices in fall in any major way.

So at the moment I think supply and demand is working Ok (except for newbuild houses that suffer from hidden government taxes)

justjohn

Get rid of the admin fee's on mortgages.

Sellers need too change there attitude to selling a house, its like buying shares. Prices do not always go up. Just cause you bought a house does not mean it is worth more when you sell it.

Peoples debt needs to be curbed. Then the housing market will move.

in the meantime the cash and paper rich are on a gravy train.

wotsthat

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?

Is there really little appetite for house buying? Maybe lenders have little appetite for lending. A greater choice of mortgages doesn't mean a lender is going to be any more willing to lend.

20% off house prices might be great - no good if you can't get a mortgage.

Eellogofusciouhipoppokunu

shortchanged wrote: »

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.

The other day you were saying that houses aren't selling because banks are refusing to lend mortgages high enough to buy them. I'm still waiting for you to provide information on this.

Graham_Devon

Eellogofusciouhipoppokunu wrote: »

The other day you were saying that houses aren't selling because banks are refusing to lend mortgages high enough to buy them. I'm still waiting for you to provide information on this.

Let me guess....this won't be the last time you mention that you are still waiting....over several different threads.

Nice to have you back reno. You have tried damned hard, I'll give you that.

shortchanged_2

Eellogofusciouhipoppokunu wrote: »

The other day you were saying that houses aren't selling because banks are refusing to lend mortgages high enough to buy them. I'm still waiting for you to provide information on this.

Look Renoman, basically the banks have realised they were stupid and gave away mortgages far too easily in the previous decade, hence the term loose lending.

We all know people will take on massive debts if they have access to it, particularly when they are sold the dream of house prices only ever go up.

Now the credit crunch has put the brakes on things and the banks and many buyers are realising that property remains overpriced in many parts of the UK, hence why we now have a continuing very subdued market.

abaxas

ILW wrote: »

Define "overpriced".

Easy.

Marketed at a price no-one is willing to pay within 3 months of initial price or within the same 3 months of price changes.

3 months is the definition of a 'normal market'.

wotsthat

shortchanged wrote: »

Look Renoman, basically the banks have realised they were stupid and gave away mortgages far too easily in the previous decade, hence the term loose lending.

We all know people will take on massive debts if they have access to it, particularly when they are sold the dream of house prices only ever go up.

Now the credit crunch has put the brakes on things and the banks and many buyers are realising that property remains overpriced in many parts of the UK, hence why we now have a continuing very subdued market.

That's your point of view dressed up as fact.

We've got all sorts of data about house prices, gross mortgage lending, deposit requirements but it would be interesting to know the numbers of people applying for mortgages and the numbers rejected over a period of time. That would tell us something.

Mortgage rationing is quickly dismissed (here) as being a fantasy and it's not something I've entirely bought in to but the evidence is building to support it.

Banks are under pressure to lend more but be safer at the same time. My view is that banks don't want to lend but, because politicians are involved, they have to pretend they are. What I would do as a bank would be to highlight increased mortgage choice and fight tooth and nail to lend to absolutely the best risks. That's why there are some amazing deals available to those low risk borrowers.

Radiantsoul

I am guessing household debt levels need to fall before the housing market has more "normal" activity levels. With lower debts people will better be able to accept lower houseprices when selling and buyers will have more spending power.

wotsthat

abaxas wrote: »

Easy.

Marketed at a price no-one is willing to pay within 3 months of initial price or within the same 3 months of price changes.

3 months is the definition of a 'normal market'.

According to Rightmove average time on market is 90 days.

http://www.rightmove.co.uk/news/files/2012/10/october-2012.pdf