House buying affordability now best since 1997

kbrumann

With consumer spending up and manufacturing and manufactured goods exports down the point will come when interests rate will finally go up dramatically. They have been far too low for many years.

IveSeenTheLight

kbrumann wrote: »

With consumer spending up and manufacturing and manufactured goods exports down the point will come when interests rate will finally go up dramatically. They have been far too low for many years.

Some queries: -

What level do you mean by a dramatical rise?

Is it back to circa 5% or are you inferring higher?

What do you think the impact on the economy would be if they went up dramatically?

somethingcorporate

IveSeenTheLight wrote: »

"If and when"
I think there is no doubt they will at some point rise, however the longer it ramins low, the longer people have the opportunity to reduce their mortgages and the greater chance they will have increased their income over the years.

When rates rise, it's unlikely to be that blustery that you need to hold on to your hat

I think you are wrong on this, people are so myopic - they will make borrowing decisions based on today without a thought as to what tomorrow will bring.

Sure I can afford to extend my mortgage when an extra £100k only costs me £150 per month (and watch their pips squeak when rates go back to normal).

You credit people with a lot more intelligence than they actually have.

Graham_Devon

IveSeenTheLight wrote: »

There is no reading it another way.

I'm sorry, but that's absurd.

It's a single piece of data. As with all data, you have to apply context.

IveSeenTheLight

Graham_Devon wrote: »

I'm sorry, but that's absurd.

It's a single piece of data. As with all data, you have to apply context.

Try as you like, you can;t compare apples with pears.

The single piece of data has used the same measurement system throughout it's use and there's no point in trying to change those criteria if you are measuring against those criteria from before.

I recall there was a long discussion on this before asking to re-plot the average median income instead of the male full time wage.
Have you replotted this since 1997?

IveSeenTheLight

somethingcorporate wrote: »

I think you are wrong on this, people are so myopic - they will make borrowing decisions based on today without a thought as to what tomorrow will bring.

Sure I can afford to extend my mortgage when an extra £100k only costs me £150 per month (and watch their pips squeak when rates go back to normal).

You credit people with a lot more intelligence than they actually have.

Maybe, but anyone on a repayment mortgage will knowingly or not be easing their situation when rates rise in the future.

grizzly1911

IveSeenTheLight wrote: »

Maybe, but anyone on a repayment mortgage will knowingly or not be easing their situation when rates rise in the future.

Depends on how long they have been repaying for before the rates go up.

Up to 10 years marginal help? If things remain even.

Generali

somethingcorporate wrote: »

I think you are wrong on this, people are so myopic - they will make borrowing decisions based on today without a thought as to what tomorrow will bring.

Sure I can afford to extend my mortgage when an extra £100k only costs me £150 per month (and watch their pips squeak when rates go back to normal).

You credit people with a lot more intelligence than they actually have.

I think you are right however the days of banks facilitating this are in the past.

michaels

Zekko wrote: »

The ten most expensive cities based on price per square metre:
1. Westminster, London, £7,586
2. St Albans, South East, £3,227
3. Oxford, South East, £2,821
4. Winchester, South East, £2,813
5. Chichester, South East, £2,638
6. Cambridge, East Anglia, £2,634
7. Brighton, South East, £2,549
8. Bath, South West, £2,376
9. Edinburgh, Scotland, £2,125
10. Salisbury, South West, £2,060

The least expensive cities based on price per square metre:
1. Londonderry, Northern Ireland, £817
2. Lisburn, Northern Ireland, £945
3. Hull, Yorkshire and Humberside, £1,027
4. Bradford, Yorkshire and Humberside, £1,042
5. Swansea, Wales, £1,063
6. Belfast, Northern Ireland, £1,064
7. Durham, North, £1,104
8. Stoke On Trent, West Midlands, £1,126
9. Sunderland, North, £1,129
10. Newport, South Wales, £1,134

http://www.telegraph.co.uk/property/propertynews/9606367/Most-expensive-and-cheapest-floor-space-in-houses-revealed.html

A least 5k in this part of St Albans....

Graham_Devon

IveSeenTheLight wrote: »

Try as you like, you can;t compare apples with pears.

House "buying" affordability, as stated by Hamish, based on a single data point alone, is absurd.

This is mortgage affordability, for those with current mortgages. Got diddly squat really to do with actually buying a house, today.

I find it somewhat odd, that you, someone who continually asks for data and research into said data, can be happy with a singular calculation, with no context added, to prove houses are at their most affordable in 20 odd years.

Just typing the last sentence shows how absurd it is.