Why houses prices will always go up and up long term

moneyinmypocket

It's a supply and demand issue

Zero_Sum

moneyinmypocket wrote: »

It's a supply and demand issue

Where I live populations are decreasing.

ruggedtoast

I demand that you supply cheaper houses.

Thrugelmir

moneyinmypocket wrote: »

It's a supply and demand issue

It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium for price and quantity.

Will always go up......:rotfl:

System

The real answer is probably inflation

CLAPTON

moneyinmypocket wrote: »

It's a supply and demand issue

price is usually a supply and demand issue

GeorgeHowell

CLAPTON wrote: »

price is usually a supply and demand issue

The left generally don't believe in supply and demand, which is why they are in denial about this. For them it's the fault of everything and everybody else :- the government, baby boomers, developers, local authorities, nimbys and bananas, baby boomers, the banks, baby boomers ... the one thing it definitely isn't down to is too many people chasing too few homes.

paddyrg

Yep, house prices will rise. So will chocolate bars and petrol prices. The ratio of those may shift dramatically. Inbuilt inflation pretty much ensures the long-term picture is going to be rises all round, however whether one particular sector increases disproportionately faster than others is speculation.

chucknorris

paddyrg wrote: »

Yep, house prices will rise. So will chocolate bars and petrol prices. The ratio of those may shift dramatically. Inbuilt inflation pretty much ensures the long-term picture is going to be rises all round, however whether one particular sector increases disproportionately faster than others is speculation.

Yes but the point that you are missing is that you don't buy a chocolate bar and pay with a loan over a 25 year period, whereas with a house you generally do. The difference is that in the 25th year (and many years before that) inflation (which you mentioned) deflates the cost of repaying the mortgage in those later years. But with rent the cost rises with inflation.

Thrugelmir

chucknorris wrote: »

But with rent the cost rises with inflation.[/FONT][/COLOR]

The days of inflation being lower than wage increases are over. So disposable income is getting squeezed.

terrencetrentderby

For young people the dream of home ownership is getting tougher all the time. My prediction is house prices will remain stable for the next five years and then start to rise again.As with anything the tougher it is to achieve the stronger the aspiration there is to have it.