Saturday, Aug 08, 2009
Property values found a resting ledge on the way down
Moneyweek: House price rebound won't last
What the commentators said
The chances are that the housing market has only "found a resting ledge on the way down", as Lex put it in the FT. At present there is a shortage of housing because low interest rates mean that the number of sellers has fallen steeply. But this is unlikely to last. As David Smith of Carter Jonas points out, "the worry is that this shortage ... will cause buyers to sit on the fence again as they shy away from committing to a purchase at a higher price".
Posted by sybil13 @ 08:44 PM (470 views) Add Comment
3 Comments
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1. mystie010 said...
"As David Smith of Carter Jonas points out, "the worry is that this shortage ... will cause buyers to sit on the fence again as they shy away from committing to a purchase at a higher price".
Yep! and he is absolutely right! Even though I hate renting and would desperately love to own my own home there is more chance of hell freezing over than me paying the ludicrous prices being asked where I live. And yes = technically I could afford to buy right now but I refuse point blank because I am not going to help perpetuate this silly market!
2. house said...
@1
Be patient, I think your patience will pay off. I am a property owner but I find it silly the way the media goes on about how prices are rising, however, to my surprise when I went around the estate agents, most of them did not expect the prices to go up, and the really honest agent also said that most FTB's are priced out and he felt that a fair price for a starter home should be approximately 3.5 times average income say in the region of £100k. The conversation with the honest agent was rather refreshing but on other side of the scale one of the agent said that the prices will start to rise in the next 2 years, I nearly died laughing but I refrained. Also one of them said although there are cash buyers around but he can count them in one hand. These cash buyers were only looking for value for money ie. at the right price.
3. mystie010 said...
house thanks for your comments, I have been visiting the site for such a long time now, sadly I think this latest house price rally is going to be one that breaks the camel's back. We have been renting for over 5 years now through no fault of our own. We needed to move for work to a more expensive area and were priced out and there's just nothing suitable. Luckily the rental that we have isn't too bad but the rent is high and I just feel like it is such a waste of money. But thanks for your words of support its only the bears on this website that keep my spirits up.