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Debate House Prices


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Mortgage help will release a surge of pent up demand.....

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Comments

  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite

    Which won't happen if mortgage rationing continues.

    After all, builders won't build what they can't sell....

    So do you actually believe if house builders cut their prices by 50% tomorrow, they wouldn't sell.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    So do you actually believe if house builders cut their prices by 50% tomorrow, they wouldn't sell.

    If they did they probably go bust and everybody else would be stuck in their present property.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    So do you actually believe if house builders cut their prices by 50% tomorrow, they wouldn't sell.

    Not that it will happen but it would certainly put a nice green tick in the affordability criteria under responsible lending guidance ( as well as actually making them affordable) and a second one in the LTV capital requirements box.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    What people actually say, which you seemingly find impossible to compute, is that more people would be able to buy if prices were lower.

    The data doesn't back up this theory either..

    Just looked at land reg for the North-West.

    August 2007 - transactions 15416 - av.price £136k

    August 2012- transactions 6600 - av. price £113k

    It's counter-intuitive but when house prices fall so do transaction levels.

    More to it than the price tag?
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    ukcarper wrote: »
    If they did they probably go bust and everybody else would be stuck in their present property.

    Yes it is an extreme example which I am trying to use to disassemble Hamish's constant rhetoric that builders won't build what they can't sell.

    Hamish constantly tries to argue that high house prices are not
    a barrier to house buying.
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    wotsthat wrote: »
    The data doesn't back up this theory either..

    Just looked at land reg for the North-West.

    August 2007 - transactions 15416 - av.price £136k

    August 2012- transactions 6600 - av. price £113k

    It's counter-intuitive but when house prices fall so do transaction levels.

    More to it than the price tag?

    Has it occurred to you that some of these areas outside of London are on the bones of their ar**s economically.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    wotsthat wrote: »

    More to it than the price tag?

    If disposable income is also falling that may be part of the reason and people waiting to see how far they will fall if finances are tight..
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    wotsthat wrote: »
    The data doesn't back up this theory either..

    Just looked at land reg for the North-West.

    August 2007 - transactions 15416 - av.price £136k

    August 2012- transactions 6600 - av. price £113k

    It's counter-intuitive but when house prices fall so do transaction levels.

    More to it than the price tag?

    It's also a good example of the old race to the bottom.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes it is an extreme example which I am trying to use to disassemble Hamish's constant rhetoric that builders won't build what they can't sell.

    Hamish constantly tries to argue that high house prices are not
    a barrier to house buying.

    It obviously is to some people but so are high deposits in fact I would think they are a barrier to more people.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    wotsthat wrote: »
    The data doesn't back up this theory either..

    Just looked at land reg for the North-West.

    August 2007 - transactions 15416 - av.price £136k

    August 2012- transactions 6600 - av. price £113k

    It's counter-intuitive but when house prices fall so do transaction levels.

    More to it than the price tag?


    or maybe low numbers of willing buyers leads to low prices?
    or a bit of both

    ps... 'willing buyers' means people wanting to buy and having sufficient deposit and being able to get a suitable mortgage
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