House Prices stable - yeah right

[shaunbhoy]

I can't see things being that simple really. If all the areas which are in slightly less "nice places" and then the ones that are slightly less nice than those all go down in price then they are bound to have an impact on the "nice places" prices....

I remember back in the early 90's my uncle lost about 30% of a property he had in London - they were saying the same things back then about nice places and high demand. If enough people lose their jobs and inflation is high enough etc etc then surely house prices will eventually suffer everywhere...

AtW will be along shortly to explain how this whole property thing works.

HTH

[DimPrawn]

I can't see things being that simple really. If all the areas which are in slightly less "nice places" and then the ones that are slightly less nice than those all go down in price then they are bound to have an impact on the "nice places" prices....

I remember back in the early 90's my uncle lost about 30% of a property he had in London - they were saying the same things back then about nice places and high demand. If enough people lose their jobs and inflation is high enough etc etc then surely house prices will eventually suffer everywhere...

Early 90's interest rates 15%


Now interest rates are negative (zero base rate + printing 100's of billions).


No way comparable.

Unemployment has **** all to do with it, banks are not repossessing in any large numbers, so paying your mortgage is optional anyway.

[Zoiderman]

Early 90's interest rates 15%


Now interest rates are negative (zero base rate + printing 100's of billions).


No way comparable.

Unemployment has **** all to do with it, banks are not repossessing in any large numbers, so paying your mortgage is optional anyway.

If you apply logic to the argument, if house prices are too high, and mortgages too much, getting the interest rates back up would see mass defaults in this day and age, less employment, less money, higher costs. I think if they're trying to keep the economy afloat, we'll not see a return to the interest rates we saw in the early 90's.

I can't see high interest rates for many, many years.

[DimPrawn]

If you apply logic to the argument, if house prices are too high, and mortgages too much, getting the interest rates back up would see mass defaults in this day and age, less employment, less money, higher costs. I think if they're trying to keep the economy afloat, we'll not see a return to the interest rates we saw in the early 90's.

I can't see high interest rates for many, many years.

I watched Osbourne interviewed and basically he said all the Tory economic policies were now based on one thing and one thing only and that' doing whatever it takes to keep mortgage rates low (end hence propping up existing high prices). It's that simple. The latest round of QE backs this up. Cheap money, cheap debt, high house prices, happy Tory voters.

[Scrag Meister]

I think it get's skewed by a number of things. I had a bungalow for sale. I put it on at £325k, and had a couple of viewings, then, a bungalow, prety much the same as mine, came onto the market, but as a distressed sale at £275-285k and then dropped within a month, to offers around £250k. It went for £230k and whilst it was on the market, I was advised to drop my price to match it, if I wanted to sell it. Simplistically, if you want to sell it, it will have ot have a prioce that reflects that.

For what it is worth, parts of Surrey are up 12.4% over the year, but most of that area is up around 2-7%. I think Wales, parts of the north and midlands, are dropping, and parts of the West country too, but also lots of the west country is up. The trouble with these indexes are that they are applied to the country as a whole, but shouldn't be.

A guy two doors up from my place in Devon had his house on the market for £245k over the next year it dropped to £195k, then he got repossessed and the last I heard was there was an offer to the creditors for £140k. Does that mean my house is only worth 140k, I would think not. He was not in a place to wait for a reasonable offer any more, but it will skew figures for an area, bringing the average down.

[AtW]

I watched Osbourne interviewed and basically he said all the Tory economic policies were now based on one thing and one thing only and that' doing whatever it takes to keep mortgage rates low (end hence propping up existing high prices). It's that simple. The latest round of QE backs this up. Cheap money, cheap debt, high house prices, happy Tory voters.

WHS

I'd just like to add this was Labour policy too!!!

[AtW]

A guy two doors up from my place in Devon had his house on the market for £245k over the next year it dropped to £195k, then he got repossessed and the last I heard was there was an offer to the creditors for £140k. Does that mean my house is only worth 140k, I would think not. He was not in a place to wait for a reasonable offer any more, but it will skew figures for an area, bringing the average down.

You are correct.

Your house will be sold for £1 trillion if you wait 1000 years, it's nothing compared with half life of carbon.

[DimPrawn]

A guy two doors up from my place in Devon had his house on the market for £245k over the next year it dropped to £195k, then he got repossessed and the last I heard was there was an offer to the creditors for £140k. Does that mean my house is only worth 140k, I would think not. He was not in a place to wait for a reasonable offer any more, but it will skew figures for an area, bringing the average down.

Pioneer of 'extreme house selling' takes extreme hit on property price - Estate Agent Today

You'll be fine. They'll be queuing up for it!

[TimberWolf]

It's all very well keeping people in their houses via QE, but how are new buyers going to afford a £500,000 mortgage? Unless we have hyperinflation in wages too.

[AtW]

Pioneer of 'extreme house selling' takes extreme hit on property price - Estate Agent Today

You'll be fine. They'll be queuing up for it!