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Debate House Prices
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A big house price correction appears to have started.
Comments
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Desire means nothing.
As long as there are people who desire, there will be people who can have the ability and become a demand.
Many desirees may be quietly saving up to become demand whilst others moan on forums whilst paying rent for years, unlikely ever to become part of the demand statistic.
These people are just dreamers, dreaming that prices will become affordable and that they can all drice Ferrari's
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I don’t think I have ever said I think house prices are going up in fact I have no real idea what they will do. But if large LTV mortgages became readily available I think it would put upward pressure on prices that doesn’t mean I think they will become readily available.
What are the chances of large LTV mortgages ever becoming readily available any time soon.
We are seeing an end to cheap easy credit in years going forward.0 -
IveSeenTheLight wrote: »As long as there are people who desire, there will be people who can have the ability and become a demand.
Many desirees may be quietly saving up to become demand whilst others moan on forums whilst paying rent for years, unlikely ever to become part of the demand statistic.
These people are just dreamers, dreaming that prices will become affordable and that they can all drice Ferrari's
Its interesting how so many bears insist there is no demand and no desire for housing and yet spend their days posting on housing forums like this about how they have large deposits and how they are waiting to buy a house. They simply fail to see the paradox of their statements.0 -
This morning in the Times I at last find a journalist with absolutely clear sight about the current house price situation. This article has crystallised in a few paragraphs what I had suspected in the back of my mind for several years now - house prices are still being propped up artifically and hugely by government policy. It's UK PLC's way of pretending everything in the garden is rosy!
You can only preview the item as the Times is subscriber only, and I can't paste it here for copyright reasons.
Who is stopping house prices falling?
http://www.thetimes.co.uk/tto/public/sitesearch.do?querystring=house+prices&p=tto&pf=all&bl=on
It's a collusion between govt and the building industry, that has horribly overpaid for it's stock of residential land over the past years. Govt's solution is to invent schemes like first time buyer subsidies and shared ownership, rather than let the market fall to where it should.
If you wanted to help the conspiracy theory along a bit, you could speculate that the most stringent anti-development planning laws in the world plus highest per-capita immigration statistics in the world dovetail neatly into this.0 -
RenovationMan wrote: »Its interesting how so many bears insist there is no demand and no desire for housing and yet spend their days posting on housing forums like this about how they have large deposits and how they are waiting to buy a house. They simply fail to see the paradox of their statements.
I don't think many of them think there is no demand or desire as such but the lack of ability to buy a house in the current circumstances.
As you well know the rocketing prices a few years ago were fueled by loose lending practices, self certs, 6x+ income multiples, IO mortgages handed out to any Tom, !!!!!! or Harry.
Obviously if there is the fuel for the fire the fire will sustain and grow if you add more fuel.
Now unfortunately Mr Credit Crunch (the fire extinguisher) has come along and dampened the fire down and cut off the fuel supply.
Now with house prices staying still relatively too high, the desire cannot turn into ability because there is a lack of adequate fuel to put back on the fire. Hence the reason for the woefully low number of first time buyers; http://www.bbc.co.uk/news/business-15887612.
So this is the problem RenoMan in that desire, demand and ability are very different things.
What we do have is probably a still high level of desire to buy but the demand is stiffled because there is no ability to fuel the demand.0 -
IveSeenTheLight wrote: »As long as there are people who desire, there will be people who can have the ability and become a demand.
Many desirees may be quietly saving up to become demand whilst others moan on forums whilst paying rent for years, unlikely ever to become part of the demand statistic.
These people are just dreamers, dreaming that prices will become affordable and that they can all drice Ferrari's
Desire without ability means nothing.
Desire, on its own,means nothing.
Very very simple.0 -
Desire without ability means nothing.
Desire, on its own,means nothing.
Very very simple.
Exactly right. You could have thousands of poor people moving into the UK regularly but if they can't raise enough money to buy it wont affect house prices. In fact this is exactly the situation. This is why you get houses in London filled with 16 people sleeping in each room. This will be more common going forward.0 -
Desire without ability means nothing.
Desire, on its own,means nothing.
Well, it means desire. It just is what it is. If people desire a product or service then logic dictates that in a cpaitalist society other people will compete to try and provide said product or service to meet desire. Price, and profit, will be set and made based on the amount of desire and the ability of other people to meet that desire.
So I understand what you're saying in one way, that people wanting to buy houses isn't enough to make prices rise as they need finance, which isn't that available at present. But that doesn't mean desire means nothing. If there is a big desire by people to buy houses then you can bet that financial institutions must be looking a how they can capitalise on that, as if there's desire there is probably the opportunity to make profit.
So desire just is what it is: a factor in a market and therefore means something.0 -
The existence of a profitable National Lottery is proof of a triumph of desire over reality.0
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Flight2quality wrote: »Exactly right. You could have thousands of poor people moving into the UK regularly but if they can't raise enough money to buy it wont affect house prices. In fact this is exactly the situation. This is why you get houses in London filled with 16 people sleeping in each room. This will be more common going forward.
It's not just the 16 people sleeping in 1 room, but kids who had moved out are moving back in with Parents.
Richard Russel says in his latest news letter
Continue to accumulate gold and 10 ounce silver bars. I'm sorry for young people now, their biggest move has been to move back in to their parents homes, back into the nest is the fated move today. As far as the economy is concerned, the phrase is ‘Don't be a pest, go back into the nest.’
This is what occurred during the 1930s, and it's in full bloom today. My best advice if your kid moved back in with you, make them pay some rent.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/26_Richard_Russell__Crumbling_Debt_to_Crush_Everything_in_its_Path.html0
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