Inflation and house prices

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Drewster replied

26 February 2010, 12:53
Originally posted by newblood View Post

How is inflation used as a negotiation means when selling/buying property ? Is inflation an argument in favor of the seller ? Money will lose value over time , so 100 000 quid buy this house today , and it will require more money ,say, 120 000 to buy the house in 10 years. So is inflation an argument in the seller's hands helping maintain the asking price for the house ?

I would have thought normal inflation (ie not Zimbabwe style) was entirely irrelevant in house buying negotiations....

Owner: The price is X
Buyer: I'll give you Y
Owner: Option A: I'll take it
Option B: FOAD
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Hiram King Of Tyre replied

26 February 2010, 12:52
At the end of the day houses sell at an equilibrium point in a supply and demand equation irrestective of what all the arguments are on either side
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newblood started a topic Inflation and house prices

26 February 2010, 12:50
Inflation and house prices

How is inflation used as a negotiation means when selling/buying property ? Is inflation an argument in favor of the seller ? Money will lose value over time , so 100 000 quid buy this house today , and it will require more money ,say, 120 000 to buy the house in 10 years. So is inflation an argument in the seller's hands helping maintain the asking price for the house ?
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