House Prices +10% YoY in next few months?

HAMISH_MCTAVISH

House prices hit highest level for five years as they jump 6.2% to add £10k to the cost of buying a home in 12 months

Biggest annual rise in three years

House price inflation goes from zero at start of 2013 to 6.2%

http://www.thisismoney.co.uk/money/mortgageshome/article-2442325/House-prices-hit-5-year-high-rising-fastest-rate-2010-adding-10k-just-year-cost-buying-home.html



Looking good so far, might be a possibility.....

:beer:

mystic_trev

Yes - I did tell you

mystic_trev wrote: »

Hamish. Can I ask you how much you expect Houseprices to rise next year? You seem to be implying (apologies if I've misread you) that it won't be much more than inflation? I think that the second round of 'Help to Buy' will inflate prices considerably. I reckon we could be looking at 10% Nationwide, and as much as 20% in some 'hotspots'

HAMISH_MCTAVISH

mystic_trev wrote: »

Yes - I did tell you

Excellent news if so.

Prices remain a good 30% or more below where they should be in real terms.

3-4 years of double digit HPI should correct the problem though.

:beer:

Graham_Devon

And you'll still insist it's not a boom...

dryhat

......... and yet we are still in the 5h1t

HAMISH_MCTAVISH

Graham_Devon wrote: »

And you'll still insist it's not a boom...

In the early years of the last boom we had somewhere between 20% and 30% a year?

10% shows a lack of ambition if you ask me....;)

Morgage_Confused

Prices round my way have shot up in only the last few months. Its gone crazy..houses selling fast with nothing staying on the market for long.
Im in Surrey and was looking to move up the ladder but I cant now as Im priced out. Im just gonna have to stay put. I was looking at properties for max 450k which is the max I can borrow but I now need 500k to make the move worth it, which is too much for me.
I am estimating literally 10% in 3-4 months! There has been a lot of new builds all advertising these gov schemes available to people with 5% deposits so I am guessing this has been the cause of the price increases.

ruggedtoast

One of my friends has just sold her flat in an unpleasant part of London in a week, full asking price first offer. I know other people who are trying to buy and finding they cant even get a viewing as stuff goes the moment its listed.

There is desperation amongst buyers at the moment, someone else I know has a £100,000 deposit and a decent job and cant find anywhere she can afford on her own.

London seems to have completely priced normal people out of the market and the situation in the rest of the SE isnt much better.

chucky

ruggedtoast wrote: »

One of my friends has just sold her flat in an unpleasant part of London in a week, full asking price first offer. I know other people who are trying to buy and finding they cant even get a viewing as stuff goes the moment its listed.

There is desperation amongst buyers at the moment, someone else I know has a £100,000 deposit and a decent job and cant find anywhere she can afford on her own.

London seems to have completely priced normal people out of the market and the situation in the rest of the SE isnt much better.

It won't be getting any better/different too quickly.

Loughton_Monkey

ruggedtoast wrote: »

One of my friends has just sold her flat in an unpleasant part of London in a week, full asking price first offer. I know other people who are trying to buy and finding they cant even get a viewing as stuff goes the moment its listed.

There is desperation amongst buyers at the moment, someone else I know has a £100,000 deposit and a decent job and cant find anywhere she can afford on her own.

London seems to have completely priced normal people out of the market and the situation in the rest of the SE isnt much better.

This is no different from the position during most of the 70's, and then again in the late 80's. Houses could only be bought immediately after first viewing unless there was something wrong with them. Only the latter was followed by a 'crash', but given that the annual rise reached (in the order of) 30%, the 'crash' of only 20% might possibly be called a 'correction' of a rather obvious bubble. The former was not a bubble, but caused primarily by general rampant inflation.

The latest 'crash' was rather different. Peak annual rises of up to 25% occurred around 2002/3 but settled down to a more realistic level by 2007 when a 20%-ish 'crash' occurred.

I would therefore hazard a guess that if prices 'only' go up by 10% YoY, then it will be reasonably sustainable for a time. By the time they start increasing by 20% or more, I would start getting nervous - but I don't think they will. Interest rate rises - which must surely come before too long - will dampen it down a bit.

nickj_2

ruggedtoast wrote: »

One of my friends has just sold her flat in an unpleasant part of London in a week, full asking price first offer. I know other people who are trying to buy and finding they cant even get a viewing as stuff goes the moment its listed.

There is desperation amongst buyers at the moment, someone else I know has a £100,000 deposit and a decent job and cant find anywhere she can afford on her own.

London seems to have completely priced normal people out of the market and the situation in the rest of the SE isnt much better.

sounds all too familiar , will we ever learn?