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House prices rising by 15-25% in 6 months?! No way!!

13

Comments

  • dunroving
    dunroving Posts: 1,881 Forumite
    First Anniversary Name Dropper Photogenic First Post
    nubbins wrote: »
    There will be a correction or downturn at some point in that particular area, then probably pick up again. London and South East are at that point and I expect that to ripple out to the rest of the country by which time London/South East will probably start picking up again. Who knows for sure but history seems to repeat itself

    Graph-2-House-prices-in-the-past-50-years-of-Queens-Elizabeth-IIs-life.jpg

    I don't see the late 80s crash on that graph.
    (Nearly) dunroving
  • kinger101
    kinger101 Posts: 6,277 Forumite
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    dunroving wrote: »
    I don't see the late 80s crash on that graph.

    That's because it's not inflation adjusted.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • caronoel
    caronoel Posts: 908 Forumite
    I've been Money Tipped!
    nubbins wrote: »
    There will be a correction or downturn at some point in that particular area, then probably pick up again. London and South East are at that point and I expect that to ripple out to the rest of the country by which time London/South East will probably start picking up again. Who knows for sure but history seems to repeat itself

    Graph-2-House-prices-in-the-past-50-years-of-Queens-Elizabeth-IIs-life.jpg


    Interesting to see the trajectory.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    edited 16 April 2018 at 1:28PM
    Jaywood89 wrote: »
    Thanks for the replies guys.

    It all makes for an interesting read.

    What I!!!8217;m perplexed about is that if house prices are rising st this rate (contrary to what the media is saying) then how can this possibly sustain?

    I bet the question has been asked a million times I!!!8217;m sure.

    This can!!!8217;t be a good thing? I!!!8217;m sure sellers would disagree but in the long run surely everyone looses when the market reaches an unsustainable level?

    Just a thought from a housing novice


    If sales volumes are falling as a smaller and smaller number of houses push up average prices, then no, it can`t sustain.


    See the last paragraph for how a small number of transactions at higher values can hide general price falls.


    https://www.bloomberg.com/news/articles/2018-04-15/london-house-prices-decline-in-stark-division-with-rest-of-u-k
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    caronoel wrote: »
    Interesting to see the trajectory.


    https://www.capitalandconflict.com/economics/the-power-of-rising-house-prices/
  • Akahotpot
    Akahotpot Posts: 155 Forumite
    First Anniversary
    In my next of the woods NW, property still has a rise at least 20% to get back to 2007 prices
  • dunroving
    dunroving Posts: 1,881 Forumite
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    Akahotpot wrote: »
    In my next of the woods NW, property still has a rise at least 20% to get back to 2007 prices

    Exactly, discussions of national trends are meaningless, because the reality for most people is what is going o where they live, not London, or Manchester, or Upper Snodsbury.

    I many areas of Scotland, house prices are just now returning to 2007 levels. I think the good news of that is they are less likely to drop, or drop substantially, if there is a house price wobble nationally.
    (Nearly) dunroving
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    dunroving wrote: »
    Exactly, discussions of national trends are meaningless, because the reality for most people is what is going o where they live, not London, or Manchester, or Upper Snodsbury.

    I many areas of Scotland, house prices are just now returning to 2007 levels. I think the good news of that is they are less likely to drop, or drop substantially, if there is a house price wobble nationally.


    London skews the national stats though, when people see proper price drops they will be in no hurry to borrow over the odds for property, and lenders will tighten how much they will lend as well.
  • Gwendo40
    Gwendo40 Posts: 349 Forumite
    Akahotpot wrote: »
    In my next of the woods NW, property still has a rise at least 20% to get back to 2007 prices


    Do you mean the 2007 bubble prices that were only achieved due to huge levels of irresponsible and fraudulent lending and almost resulted in the crashing of the entire economy?
  • dunroving
    dunroving Posts: 1,881 Forumite
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    Gwendo40 wrote: »
    Do you mean the 2007 bubble prices that were only achieved due to huge levels of irresponsible and fraudulent [STRIKE]lending[/STRIKE] BORROWING and almost resulted in the crashing of the entire economy?

    Fixed it for you.
    (Nearly) dunroving
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