House prices

liamfahy

Where do you house prices heading? My view is there is still a way to go before they bottom out. If you look at the multiple of average earnings needed to buy an average priced property then you can see prices are too high.
What do you think?

Thrugelmir

Markets depend on confidence. Property is overpriced. However as long as people are prepared to pay them. Then there's unlikely to be significant correction.

grifferz

Prices are still going up in many parts of London, then there is the "Help to Buy Mortgage Guarantee" that will be available from January 2014, which looks like it will help people with 5% deposit to get up to 20% deposit.

https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-mortgage-guarantees

I've no idea what effect that will have, I just feel like it's going to do something!

MobileSaver

liamfahy wrote: »

Where do you house prices heading? My view is there is still a way to go before they bottom out. If you look at the multiple of average earnings needed to buy an average priced property then you can see prices are too high.
What do you think?

I think this post is in the wrong forum, should be in the "Debate House Prices" forum.

Prices are too high for who? Plenty of people buying houses around my way.

My view is that those who continue to put off buying now will regret it - the market is already picking up and house prices are already starting to rise again.

SG27

Thrugelmir wrote: »

Markets depend on confidence. Property is overpriced. However as long as people are prepared to pay them. Then there's unlikely to be significant correction.

I think you mean as long as banks are still prepared to lend silly amounts.

Which they are unfortunately.

ILW

SG27 wrote: »

I think you mean as long as banks are still prepared to lend silly amounts.

Which they are unfortunately.

Banks will lend on what the security is worth.

SG27

ILW wrote: »

Banks will lend on what the security is worth.

No, they lend on income multiples and credit ratings. If banks will lend 10x salary to people with a poor credit ratings then the uptake would be massive and prices would surge, as they did. In my experience talking to people and reading these forums many people are idiots. If a bank will lend the money so someone can buy a house they can't afford they snap it up! If the bank won't lend the money they want to know how they can lie and cheat the system to still buy the house they can't afford!

I honestly don't think I could reasonably afford the repayments if I had borrowed the maximum I was offered on my mortgage.

harpoboy

All of the main house price indices are positive over the past twelve months, but there are regional variations with London and the SE storming ahead.

According to the OBR and others, there will be another uplift in the market once the government funding schemes kick in next year:
http://www.dailymail.co.uk/news/article-2299333/House-prices-INCREASE-George-Osbornes-130bn-mortgage-help-scheme-kicks-in.html

Turnbull2000

Thanks to numerous government interventions, we should experience quite a strong uplift in prices in 2014. Price growth in excess of 10% is a real possibility, and be most welcomed by Osborne and the Bank of England.

This year's Spring Bounce should also best performance in years.

btw, multiples of average salary is now an obsolete benchmark for house prices.

Thrugelmir

SG27 wrote: »

I think you mean as long as banks are still prepared to lend silly amounts.

Which they are unfortunately.

Adjustment takes time as needs to be conducted in a controlled manner. A lot has changed since the dizzy heights in 2007. Will take years yet to have a full impact though.

SG27

Turnbull2000 wrote: »

btw, multiples of average salary is now an obsolete benchmark for house prices.

It was pretty important to me when I got my first mortgage recently.

I hope your wrong about prices at somepoint ill need a bigger family home and have no idea how I will afford it at today's prices let along 10% more!!