Do you want house price to rise or fall?

movilogo

If you want to upsize it's bad for you as your next house will have gone up by more than your existing home.

While this is true, in reality most people ignore this fact. This is because psychologically people tend to value what they already own much higher than market price.

This is known as Endowment Effect.
https://en.wikipedia.org/wiki/Endowment_effect

lookstraightahead

Fall. I think too much wealth that has been created by chance can make some people greedy.

ukcarper

The reason I wouldn't like to see a fall in nominal terms is that it would put many people into negative equity or with very little equity. I think the best option is real term falls as this will slowy make property more affordable without punishing people who have bought recently. Although saying that I would benefit most from rising prices because if I do move it will be to downsize but like lisyloo I think it would be better for more people.

ProDave

I want prices HERE in the Highlands to rise, as they have been stagnant since 2008. Only because rising prices would indicate there is a demand, which at the moment there is not.

triathlon

Rise of course, more the better.

Rich2808

Beat_Color wrote: »

To buyer, ofcourse Fall
To seller, Rise

Unless you are a buy to let landlord or intend to sleep rough or are selling an inheritance every one is buying and selling. If you are trading up you want prices to fall - if trading down to rise.

Of course many of those arguing against a fall are many of the same people who were able to accumulate housing wealth in the 1990s because of the crash in the early part of that decade. A crash served them well once!

borkid

lisyloo wrote: »

Long term it depends on what your plans are.
If you want to upsize it's bad for you as your next house will have gone up by more than your existing home.

I voted fall, although it's probably better for me if they go up but I didn't vote in my own self-interest.

This is the crux. to all those who say fall what about the young couple who saved to buy their first home and then need to move either for work or because they want a family? They could easily be stuck with negative equity. I would say prices should remain the same until wages catch up and buying reaches a more managable level.

I don't intend to move and have already paid off my house so really it wouldn't affect me which way it went.

kinger101

Of course, on benefit of continued rises is we get to laugh at Crashy for even longer.

dunroving

movilogo wrote: »

Just a simple poll to see what MSE members want.

PS: Please assume rise means a value higher than inflation and similarly, fall means value lower than inflation adjusted figures.

Alaternatively, you can also consider

rise = average house price / average income => ratio going up
fall = average house price / average income => ratio going down

I wanted to vote "Stay stable", but the survey didn't include this (doh). So I voted "increase" on the basis that if they stay stable relative to the cost of living, they will increase slightly each year.

I bought at the peak of the market (2007) in an area where prices have only recently returned to that peak. I think rabid increases in house values, and the notion of houses as an investment, have really hurt this country. However, a fall in prices will mainly hurt those who bought close to a peak, or recently. So I definitely am not in favour of any substantial falls.

Personally, I'd rather they stay the same (not increase with RPI). That way, sellers won't be stuck in negative equity, and wages will eventually catch up with house prices. And "investors" will maybe sell a few of their portfolio to homeowners.

buggy_boy

I think we can all agree house prices in certain areas are not affordable for the average person, house prices increasing in the way they have is not sustainable, but at the same time we probably dont want a crash as this would have a huge knock on effect to the economy... The best solution I think is a small adjustment 5-10% and then lower than inflation rises for the next 10-15 years so in real terms prices fall...