Thursday, Sep 17, 2009
But with what money?
Telegraph: Now is best time to buy a home, say six in 10
Around 58pc of people think it is currently a good time to purchase a home, compared with only 19pc who think it is a bad time, according to the Building Societies Association. Consumers now expect house prices to rise by an average of 1.6pc during the coming 12 months, with 61pc of people expecting a price rise and only 15pc anticipating a further fall, down from 27pc who expected the correction to continue in June. A lack of job security continues to be the biggest factor stopping people from buying a house at 58pc, followed by raising a big enough deposit at 52pc, while 39pc of people are worried about being able to afford their monthly mortgage repayments.
Posted by drewster @ 06:56 PM (1330 views) Add Comment
24 Comments
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1. will said...
and most of them have not owned a home during a price correction.
2. shipbuilder said...
Most people think that it's a good time to buy a house, but most of the same people aren't able or willing buy a house. Mmm.
3. phdinbubbles said...
8 out of 10 cats prefer whiskers.
4. cynicalsoothsayer said...
Looks like government propaganda has been having an effect, but in the back of their minds the sheeple are still worried though.
Their strategy isn't really working then, they'll have to drop it just like they've had to give up on pretending there will be no cuts in public sending.
5. cynicalsoothsayer said...
Duh! ...spending. Or maybe sending up.
6. mrflibble said...
People believe what the media tells them and they have been ramping like crazy lately...
Well, don't let me hold you back, the average home is merely 6x the average salary, obviously never been a better time to buy, especially with unemployment raging out of control... Buy now or forever miss the boat...
7. brickormortis said...
I wonder what proportion of people thought it was a good idea to buy a house in August 2007? Yep, more than 58%. In fact somewhere nearer 90% I imagine.
8. brickormortis said...
I wonder what qualifies these numpties anyway? Exactly, nothing!
9. cynicalsoothsayer said...
Up here in Jockland there's plenty people who think house prices haven't fallen at all. Going by the local property pages/websites they could be forgiven for thinking that.
10. mark wadsworth said...
As Shipbuilder says, this is article is genius!
Most people think it's a good time to buy a home ... except they've no money for a deposit, wouldn't be able to afford the mortgage repayments and are worried about losing their jobs.
11. brickormortis said...
A price is easy to assign but a value is a different matter!
12. rumble said...
Yeah (Mark, Ship), now is the best time to buy, and we still can't afford it.
13. europeanbear said...
About a year into the last crash 1989-1994, I remember a survey saying that most people thought it was a good time to buy (as prices had come down a little), and prices were very reasonable, but the thing that was stopping them was the "repayments" on the mortgage required. It is only a good time to buy if people can deliver on their wishes
14. phdinbubbles said...
I suspect a good time to buy will be when 2 in 10 think it's a good time because prices only go down ya know.
15. peter_2008 said...
Unemployment is a big elephant, but it is not the only one in the room.
The worthiness of British property market is actually determined, not by homebuyers, but by investors - the (foreign) investors that lend the banks money (at peak, nearly 2/3 of all mortgages).
Right now, British property market is not attractive at all. Very high risk – very low return. You don’t have to be a HPCer to see that. Even the VIs have to admit that from a global prospective, British property market is not a particularly good investment.
The difference between hot headed VIs and cold hearted investors is that VIs are counting on British people’s obsession, whereas investors look at British people’s ability to repay the debt. All things considered, the Brits (and its government) are probably going to (at least partially) default on its debt obligation.
The more Brits are fanatic about the value of their properties, the more the investors get scared away. Among the foreign investors, the general consensus is “Let the Brits screw between themselves and let’s profit from what would be left after the carnage.”
16. quiet guy said...
Here are the last two paragraphs to the press release from the Building Society Association:
(http://www.bsa.org.uk/mediacentre/press/property_tracker_sept09.htm)
'“However, buyers are clearly treading with care, and worries over job security continue to deter many from buying. Lack of job security remains the most significant barrier. With unemployment forecast to rise into 2010, this is likely to remain a critical, negative influence on the confidence of house buyers, and deter them from returning to the market.
“Raising a deposit is also seen as a barrier by over half of the respondents to the survey, and this may further constrain house price growth in the future”'
The BSA's press release seems more balanced and sensible than the Times article to me.
The full BSA report at http://www.bsa.org.uk/docs/presspdfs/pt_september09.pdf looks worth a look as well, if you've a little time to spare.
17. Jamonit said...
I think this is tragic. I'm going to live on a boat. Stuff it.
18. jamonit said...
I think this is tragic and am going to live on a boat. Get away from it.
19. mark wadsworth said...
I think Peter 2008 nails it.
Within our shores, the whole "property can only go up" brigade has the political upper hand*, but to stoke a property/credit bubble this size you need foreign investors to chip in. Which ain't gonna happen for a good long while, as they have run out of money as well, seeing as their "money" was just what we owed them for selling us oil, TVs, cars etc in the first place.
* And we Land Value Taxers have a mountain to climb...
20. uncle tom said...
How was the question worded?
"Mr Smith, if you were living on the streets with your wife and children, sleeping in old cardboard boxes; but had half a million in the bank; would you consider this a good time to buy a home?"
21. peter_2008 said...
I had an interesting conversation with an eager FTB, who complained that banks aren’t lending enough. He blamed banks for suppressing another bubble and therefore striped him of his basic human rights of living off equity and not have to work.
Then I asked him a hypothetical question that if he had some savings, whether he would lend money to people like himself and has the patience to spend 25 years to get the money back.
He answered “No! Hell No!” straight away. And then it hit him and he said “Oh…I see the problem now.”
22. Christoffs said...
best tuck yourselves up in bed with a big stack of cash under the mattress. Rent all you life and always regret the day you should've brought your first home...
23. letthemfall said...
And of course, when it comes to financial matters, we know how reliable the judgements of the average person is. Pity they weren't asked their views on alien abduction.
24. Vlad said...
I purchased house 3 month ago and happy. Reasons - no any government will allow so much deflation as it should be. Otherwise economy will be destroyed. So only way is - print money and pump them into economy. This way we will see hyperinflation. Which means that nominal prices will stay same, but money will devalue. So savers will be trashed and future adjusted house prices fall is already factored into current prices.
Those who are saving now will be robbed by politicians. I switched sides. After saving for years, I've got into as large mortgage as I could and spending all my savings while prices are low.