Reply to: Boomed! £1K a month for nothing

[Lucifer Box]

Not dissimilar in my area of SW London. Prices have risen to such an extent that they are in excess of what anyone is prepared to pay to lived in a suburb of a big city. People look at what £2.75m (the asking price of the latest house, a detached, to go on sale around the corner) will buy elsewhere and go elsewhere.

[rootsnall]

I live in a nice sleepyvillage in North Wales - not far from Chester. Prices around here are going up & up but ................................................

no one is buying !

The house next to us is a nice little bungalow with a fair sized garden, that's been on the market for over a year. The in-laws house is up for sale (8 months & rising)

They are asking the initial valuation price, but in both cases the estate-agents have recently asked them to drop by 20% if they want to sell.

Its pretty similar around my way ( okish part of Lancs ) except for one off desirable properties. I just had to pay asking price for one after missing out on the last couple to come up, its not completed yet and my bearish instincts are nagging away but the Mrs won't be happy if we pull out. There are plenty of houses on at silly prices for a year plus without a hope of selling them but they are generally oldies looking to cash in and in no rush to sell.

[AlfredJPruffock]

House prices will

1 Stay the same
2 Increase
3 Decrease

Come what may - grey slates will remain grey slates

[Sockpuppet]

I dont see this £1000pm increase.

I've been looking for 6 months or so and I can't say houses in my area are £6k higher than they were. Maybe £1-2k but not 6.

[foritisme]

I live in a nice sleepyvillage in North Wales - not far from Chester. Prices around here are going up & up but ................................................

no one is buying !

The house next to us is a nice little bungalow with a fair sized garden, that's been on the market for over a year. The in-laws house is up for sale (8 months & rising)

They are asking the initial valuation price, but in both cases the estate-agents have recently asked them to drop by 20% if they want to sell.

[andy]

When the last bear has turned to a bull, thats when it will crash.

I think I am the last bear and I have not bought yet.
So keep on buying houses

[rootsnall]

When the last bear has turned to a bull, thats when it will crash.

I've been a hardened bear for years but just bought a big house so now a bull !

[Lucifer Box]

Is the Centre for Economics and Business Research a codename for Gordo's mates? This kind of stuff is really tiresome. Anyone with a modicum of common sense can say house prices are looking toppy by any measurement you care to name:

1) Prices well above long term trends
2) Rental yields in London are sub 4%. Cost of money is ~6%
3) You need a lot more than an average (median) salary to buy the average home.

All indicators point to overvaluation.

That's not to say prices won't rise in 2007, but to go on record saying that they "should" is ludicrous. Certainly to say they'll accelerate in 2010, which is when the major demographic forces start to kick in (baby boomers sell up and begin dying off or vice versa) is foolish.

Bob, everybody knows that house prices will rise forever. Fill yer boots.

[AtW]

Ok, I am convinced - I am going to get self-cert morgage in between buying print paper and milk from other shops on high street.

[Bear]

Mooooooo

[BrilloPad]

When the last bear has turned to a bull, thats when it will crash.

[The Lone Gunman]

But a big reason is that, every year, borrowing money is becoming easier. This has resulted in an unprecedented debt bubble. There will be fun when that bursts!

I would agree with that. As long as there is high demand prices will rise. The only way it will stop is when people can not afford to buy, which will happen when banks and building societys get cold feet on the lending front. It is not in their interests (pun intended) to stop lending. <hovis music> When I were a lad....</hovis music> you could only borrow 1.5 times salary. Now people are borrowing 5 or 6 times salary and with self cert mortgages they can declare salary to be any amount they think they can sustain payments on.

Now thats gonna hurt in the morning.

[wendigo100]

Every year we say that house prices have topped, and the next year they shoot up to new levels.

One reason is that demand is going up because of immigration and more people living alone.

But a big reason is that, every year, borrowing money is becoming easier. This has resulted in an unprecedented debt bubble. There will be fun when that bursts!

[DimPrawn]

It is almost accepted that in 2015, houses will double in price EVERY day.

You heard it here first.

[bobhope]

Is the Centre for Economics and Business Research a codename for Gordo's mates? This kind of stuff is really tiresome. Anyone with a modicum of common sense can say house prices are looking toppy by any measurement you care to name:

1) Prices well above long term trends
2) Rental yields in London are sub 4%. Cost of money is ~6%
3) You need a lot more than an average (median) salary to buy the average home.

All indicators point to overvaluation.

That's not to say prices won't rise in 2007, but to go on record saying that they "should" is ludicrous. Certainly to say they'll accelerate in 2010, which is when the major demographic forces start to kick in (baby boomers sell up and begin dying off or vice versa) is foolish.