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Debate House Prices
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It is all the fault of people.
As ordinary people get richer they make choices about how to spend their extra income.
Many use that extra income to choose to live in better/larger/more convenient homes.
The USSR didn't have these problems.0 -
But of course the available supply of new cars is exactly as many as they choose to make.HAMISH_MCTAVISH wrote: »Because the demand for these cars far exceeds the available supply of them.
Very few markets really work on simple supply and demand. But Adam Smith never read von Neumann on game theory."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
But of course the available supply of new cars is exactly as many as they choose to make..
Whereas the available supply of new housing has been limited by planning permission created scarcity for many decades.
We don't have a shortage of land to build houses on.
We do have a shortage of housing though.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Supply and demand.
In 1961 a new Jaguar E type could be bought for around £1900. Adjusted for inflation that would be £35,000 today.
The actual price today would be around £70,000.
http://www.carandclassic.co.uk/car/C234234
Because the demand for these cars far exceeds the available supply of them. So prices will rise until sufficient people are prevented form buying that demand and supply equalise.
Same thing with houses....
Or you could simply by a replacement model for much less.
http://www.sytner.co.uk/guy-salmon-jaguar/used-cars/used-car-offers/guy-salmon-jaguar-the-best-selection-of-used-xk-and-xkr.aspx?gclid=CKqslI_u-bcCFeTLtAodciwAYA
I am sure you could find them cheaper too if I could be bothered to search.
Cars decay and you are looking at a collectable rather than nearly new."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 Muruganantham0 -
vivatifosi wrote: »The key issue for me TruckerT is the level of inflation in items where demand is inelastic, or of low elasticity.
In other words, people have to fuel their house. They may turn the thermostat down a degree or two, but there's little else they can do about price rises. Similarly with food, if prices of bread go up, then you can buy a cheaper loaf but you still have to eat. So if these things go up in price, it doesn't matter what's happening to your wages, you still have to pay for them. That's why they are called inelastic, or as having low elasticity of demand. For other things, eg tellys, clothes, prices haven't gone up as much. Here, demand is far more elastic.
If you look at where inflation comes from at the moment, it is mostly components of our spend that are inelastic.
Maybe they could cut down a bit?
http://www.nationalobesityforum.org.uk/The National Obesity Forum [NOF] was established in May 2000 to raise awareness of the emerging epidemic of obesity
BTW what does 'it doesn't matter what's happening to your wages' mean in this context?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Maybe they could cut down a bit?
http://www.nationalobesityforum.org.uk/
BTW what does 'it doesn't matter what's happening to your wages' mean in this context?
Probably true in my case.
Wasn't something similar tried in by the Germans and Japanese in the last war? Didn't end well."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 Muruganantham0 -
Immediately before the war?
Immediately after the war, a Labour government was able to create a welfare state which included the National Health Service.
House prices and the NHS are apparently no longer affordable.
TruckerT
Something else I forgot to mention. A quarter of London's housing was either destroyed or damaged in the war. As a result it led to an increase in housing prices, which was countered by a massive growth in housebuilding.
Large scale housebuilding stopped around 30 years ago but the population has continued to grow. We have 30ish years of insufficient supply to blame for the growth in prices, this is a very imperfect market - as Hamish pointed out.Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
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vivatifosi wrote: »
Large scale housebuilding stopped around 30 years ago but the population has continued to grow. We have 30ish years of insufficient supply to blame for the growth in prices, this is a very imperfect market - as Hamish pointed out.
Who built a big proportion of that housing and who stopped building 30 years ago."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 Muruganantham0 -
Building new ghettos is probably not the answer to London's housing problem.
Removing many of the inhibitors to new building would probably be sufficient to ensure new building.0 -
grizzly1911 wrote: »Or you could simply by a replacement model for much less.
Well technically the 'replacement model' is the F-type.
But it's £90,000.
http://www.vanrooyen-eps.com/showroom/jaguar-f-type-5-0-supercharged-v8-2dr-auto-vat-brand-new-2-doors-automatic-convertible-petrol-2013-10-miles/Cars decay and you are looking at a collectable rather than nearly new.
Supply and demand determines the price of second hand cars, whether they be collectible or ordinary, just as supply and demand determines the price of second hand houses.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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