Why are house prices still so high?

Thrugelmir

phillw wrote: »

Unions were bad, Margaret Thatcher breaking the unions was bad.

Unions failed to change with the times.

What's your view on Scargill? Hardly a socialist at heart......

Goldman2020

Keep it to the topic.

letitbe90

AG47 wrote: »

The worst thing that could ever happen now is an even longer extension. This will make the HPC even more than 35% and take longer to hit bottom and start he next up move. It could be several years falling house prices until the next cycle.

To extend the uncertainty would be devastating. Far better to just have no deal on April 12 take the pain and en get on with healing. Then only a 35% crash in property, or no even hat, instead of falling property for years and years due to the fallout from the uncertainty.

Pull the band aid off in one painful move then work on building trade deals, of which many are already in place.

Taking months more, or even years as some are suggesting will not only prolong the pain but make it much worse at the end of the extension.

It's going to be very very hard times for many, why not just rip the bandaid off no and then get over the pain instead of extending it and making it worse....

A long extension would increase the appetite in the market that either a remain scenario or a marshmellowy soft Brexit is destined. As a result, house prices will not crash as you think it would but rather the opposite. I can see a lot of demand increase as well as more people willing to sell their house, should a long extension occur.

To be honest, under no scenario (other than accounting fraud circa of 2008) will it result in a crash of house prices anything more than 10%.

I should probably inform you that, the 35% figure you speak of (which came from the BoE governor Mark Carney), he has actually flipped his position and now believes Brexit is good for UK.

AG47

letitbe90 wrote: »

I should probably inform you that, the 35% figure you speak of (which came from the BoE governor Mark Carney), he has actually flipped his position and now believes Brexit is good for UK.

Brexit is good for the uk in the long run, but property crashing in the mid to short term is a nessasary pain to go through due to the fallout from the uncertainty.

In uncertain times it's already good to hve some extra food and provisions.

Most people have about three days of food in their homes, and the last day or so will be scrapping the bottom of the barrel.

These are certainly uncertain times. The best case scenario will still see impact on virtually everybody.

The worst case scenario doesn't even warrant thinking about, but the reality will probably be something in between.

TripleH

There is an impending housing market readjustment due. I think there could be a situation soon where a 2 bed property becomes worth more than a3 or 4 bed property in same area (everything else being equal).

Baby boomers need people to come along and buy their family homes but if the younger generations are having less children, not wanting large family homes but the same 2 bed properties the boomers are after, demand would increase, supply falls.

To me it makes sense if you have a large empty nest home, to look at converting to flats perhaps? Get less maybe than you want but more than the actual unconverted house would get?

Zero_Sum

TripleH wrote: »

There is an impending housing market readjustment due. I think there could be a situation soon where a 2 bed property becomes worth more than a3 or 4 bed property in same area (everything else being equal).

Baby boomers need people to come along and buy their family homes but if the younger generations are having less children, not wanting large family homes but the same 2 bed properties the boomers are after, demand would increase, supply falls.

To me it makes sense if you have a large empty nest home, to look at converting to flats perhaps? Get less maybe than you want but more than the actual unconverted house would get?

The baby boomers will only be after smaller ones to not only downsize but to release equity. If said downsized house will cost the same or even more, then baby boomer will just stay put.

I also think millenials are a bit more snobby when it comes to property, turning their noses up at the cheaper areas, wanting a new build 3 bed semi as first house. Just because they have less kids doesnt mean theyll want to stick at 2 beds. Ive only had 2 houses & both were 3 beds, both bought as a singleton.
People see property as an asset rather than a home, so will tend to push themselves to get the most expensive one they can.

phillw

Zero_Sum wrote: »

People see property as an asset rather than a home, so will tend to push themselves to get the most expensive one they can.

Why would anyone choose to live in a worse house than they can afford? Especially as soon they will no longer be able to afford the better house that they casually rejected.

Your argument sounds like "please don't buy the better house because I want it and maybe if demand drops then I'll be able to afford it".

Zero_Sum

phillw wrote: »

Why would anyone choose to live in a worse house than they can afford? Especially as soon they will no longer be able to afford the better house that they casually rejected.

Your argument sounds like "please don't buy the better house because I want it and maybe if demand drops then I'll be able to afford it".

No. What im saying is people will over stretch themselves, so its questionable to if they can really afford it in the first place. Especially if rates rise.

I live on a new build estate, and you'd be amazed at how many of the cheaper houses have flash cars on the drives. So id say many do chose the worse house to enable them to drive nice cars & have many holidays.

In both above cases, its people who live pay day to pay day. Theres a sensible happy medium. Ive bought the best house i can genuinly afford, i couldve opted for the next one up and got by, but wouldve had to make other sacrifices.

Mistermeaner

hi guys; i think this is my first contribution to this thread and i think I can close it with this post.

The answer is supply and demand

Next

phillw

Mistermeaner wrote: »

hi guys; i think this is my first contribution to this thread and i think I can close it with this post.

The answer is supply and demand

Next

That doesn't answer the question posed as the OP was questioning what was driving the demand.