House Prices Up Up Up.....The Express.....

marleyboy

That we bought this house last November, must mean we have already amassed a nice potential profit, so it can only be a good thing for me.

jacko74

Well I'm getting more Rightmove alerts for 'reduced properties' than I've ever previously had... good old Daily Express pandering to it's property owning, middle class boomer readership telling them what they want hear and don't they just lap it up!

lisyloo

Well I'm getting more Rightmove alerts for 'reduced properties' than I've ever previously had

Can you tell us where you are?
Location, location, loccation and all that

Generali

Well I've done the rough sums again.

Inflation is ~0% so we can take that out of the picture. An average house, according to the Express is £273,000 and according to these guys, UK GDP is about £1,732,914,000,000.

House prices are rising at 9.6% per the article, nominal GDP is rising by 1.7%.

So currently an 'average' house is worth 0.0062% of daily GDP. At current rates of growth by 2084, about the time my youngest is retiring, a house will cost a day's GDP. The entire output of the UK for a day will be required to buy a modest 3 bed terrace in Slough.

From this we can surmise that either:

1. Housing is the best investment ever
or
2. Something's gotta give

If you're interested a year's GDP would be required to buy our mythical average pad in 2163 and by 2069, 8 hours of GDP (i.e. everyone's working day) would be needed to buy our 3 bed terrace in Slough.

Ironically the thought probably gives some posters a semi.

http://www.rightmove.co.uk/property-for-sale/property-51459326.html

mayonnaise

jacko74 wrote: »

Well I'm getting more Rightmove alerts for 'reduced properties' than I've ever previously had... good old Daily Express pandering to it's property owning, middle class boomer readership telling them what they want hear and don't they just lap it up!

Rightmove alerts.
Crashy and Bubbles (April 2014 peak ) got very excited by those also.
Rightmove reductions and Property Bee. :rotfl:

wotsthat

Generali wrote: »

From this we can surmise that either:

1. Housing is the best investment ever
or
2. Something's gotta give

Clearly it's (2) - I'll stick my neck out and predict prices won't increase by 10pa in real terms in perpetuity.

If something's not sustainable then it won't be sustained (I think you said that) but plenty of people have discovered, to their cost, this doesn't have to mean house prices have to necessarily crash or even fall in a convenient timescale.

What is it - 'the market can stay irrational longer than you can stay solvent'?

Generali wrote: »

If you're interested a year's GDP would be required to buy our mythical average pad in 2163 and by 2069, 8 hours of GDP (i.e. everyone's working day) would be needed to buy our 3 bed terrace in Slough.

Ironically the thought probably gives some posters a semi.

http://www.rightmove.co.uk/property-for-sale/property-51459326.html

Definitely a terrace rather than a semi.

wotsthat

jacko74 wrote: »

Well I'm getting more Rightmove alerts for 'reduced properties' than I've ever previously had... good old Daily Express pandering to it's property owning, middle class boomer readership telling them what they want hear and don't they just lap it up!

You ought to have a read of the 'is prime London crashing?' thread on HPC which has become a thread covering mainly London rather than just prime.

The OP started it on 4th January 2014 and has been posting almost every day for 17 months proving prices have fallen by pointing to Rightmove reductions as discovered by Property Bee. With the weight of evidence over this time you'd think London was nothing more than a barren desert by now but the reality is prices have gone up by more than 10% in the last 12 months alone.

Vendors reducing asking prices is a very clumsy method for making any firm conclusions about the direction of house prices. Vendors fly kites whether prices are moving up or down.

However, it's better than making house price predictions based on the share price of Foxtons (even reading tea leaves would be better than that)

Generali

wotsthat wrote: »

You ought to have a read of the 'is prime London crashing?' thread on HPC which has become a thread covering mainly London rather than just prime.

The OP started it on 4th January 2014 and has been posting almost every day for 17 months proving prices have fallen by pointing to Rightmove reductions as discovered by Property Bee. With the weight of evidence over this time you'd think London was nothing more than a barren desert by now but the reality is prices have gone up by more than 10% in the last 12 months alone.

Vendors reducing asking prices is a very clumsy method for making any firm conclusions about the direction of house prices. Vendors fly kites whether prices are moving up or down.

However, it's better than making house price predictions based on the share price of Foxtons (even reading tea leaves would be better than that)

House prices in London can go up by 25% for a year, down by 20% (to the same level). Short term prices are volatile (noise).

It remains highly unlikely that an office clerk or car mechanic is going to be living the high life.

jacko74

mayonnaise wrote: »

Rightmove alerts.
Crashy and Bubbles (April 2014 peak ) got very excited by those also.
Rightmove reductions and Property Bee. :rotfl:

Poor old Mayonnaise... when are you ever going to learn the difference between ASKING prices and SOLD prices?:rotfl:

Generali

jacko74 wrote: »

Poor old Mayonnaise... when are you ever going to learn the difference between ASKING prices and SOLD prices?:rotfl:

There is (or was) an index which summarised.