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MSE News: House prices up at fastest rate in three years
Comments
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its good news for anyone in negative equity or selling and not buying ,otherwise it makes no difference .
My house could be worth a zillion quid but I am not selling so makes no difference."Do not regret growing older, it's a privilege denied to many"0 -
Prices are going to the moon! Get in!0
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its good news for anyone in negative equity or selling and not buying ,otherwise it makes no difference .
My house could be worth a zillion quid but I am not selling so makes no difference.
Also good news for LTV (loan to values). An increase might move some mortgage holders into a new bracket and allow them to get cheaper mortgage rates.0 -
What we should try is to build a Brasilia.
Cornwall seems to be full of pot holes from open cast mining.
Build a huge airport with at least five runways, with provision for private jets.
Lets give planning permission for CASTLEs, but nobody is allowed to call theirs Camelot or Tintagel. I assume every rich !!!!!!! in the world wants a genuine castle in England. Get a thousand suckers to buy a plot, for say £10million pounds. they will then spend £100million+ each to build a castle. The Sultan of Brunei will probably spend £1billion to one up the rest.
I have now single handedly saved the British construction industry, a knighthood please. Richard Rogers should give me 10% commission for make him mega-rich.
Tell the Arabs what is the point of building a mega-palace in the Middle East, if some terrorist is just going to come along and bomb it? You can't get insurance after the first bomb.0 -
its good news for anyone in negative equity or selling and not buying ,otherwise it makes no difference .
.
Rising house prices are good for......
-The millions of people who are in or approaching retirement, and who either plan to, or may unexpectedly need to, downsize.
-The millions more people who are in their final property now, but will find themselves in the position above at some point.
-The couple of million people who bought within the last 7 years, who may be in or close to negative equity.
-The owners of the 2 million investment properties.
-The millions of people who may need to re-mortgage as and when rates climb, and want the best possible LTV ratio to get the best rates.
-House builders, construction industry, suppliers, investors, pension funds holding mortgage securities, banks, and all housing related industries, all of their shareholders and employees, whether they own a house or not.
-The family members of anyone who will leave an inheritance, or release equity to help their kids onto the ladder when downsizing, etc.
Rising prices are bad for......
-A few hundred thousand potential FTB's at any given time...... But only until they get on the ladder, and become one of the groups above.
And as for upsizers......
It used to be commonly believed that falling prices were better for them.
However this crash has proved that to be wrong, in most cases, because the price of their FTB property has fallen by far more than the price of the 2TB properties.
So the gap between rungs on the ladder has widened, not narrowed, with falling prices.
In summary, rising prices are better by far for the vast majority of society, and falling prices only benefit a few, and then only temporarily.“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 -
I wonder if prices may fall again when interest rates rise (probably not for a while yet).
Market has definitely picked up where I am (NW).
too many comps..not enough time!0 -
chickaroonee wrote: »I wonder if prices may fall again when interest rates rise (probably not for a while yet).
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Unlikely.
Interest rates are likely to only rise when the economy is recovering strongly enough to support such a rise.
In other words, when we have stronger economic growth, rising employment, falling unemployment, rising wages, increased lending, etc.
None of which are conditions usually associated with falling house prices.
In addition, it is very likely that mortgage rates will not rise as fast as base rates.
Or as the governor of the BOE puts it.....
"The reason we would raise interest rates would be in the context of a much stronger economy with unemployment falling rather than rising.
It should also be the case that the interest rates that borrowers face should not rise as fast as the rise in bank rate.
"Along with the path of an increase in the bank rate -- which inevitably will come from where we are now back to more normal levels -- you would expect that to be accompanied by a process in which the spread between the bank rate and the rates banks charge would undoubtedly narrow."
~ Sir Mervyn King“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 -
Well I saw an interview with him where he said he thought prices may well drop after rates rise.
too many comps..not enough time!0 -
chickaroonee wrote: »Well I saw an interview with him where he said he thought prices may well drop after rates rise.
Link?
Anyway.... we've been through 6 years of property market slump, the recovery is just starting, and the peak of the next boom will be sometime in the mid to late 2020's.
It's about 7 o clock......
“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 -
No link, I saw it on tv and am not really that bothered to search. He did say it though, and I can see the argument.
too many comps..not enough time!0
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