Sunday, Jan 03, 2010
Halifax ramping as previously posted,but worth reading the comments.
Msn news: Property 'now more affordable'
PeterPan3#5
03 January 2010 13:55:42
I agree with getemoutahere, house prices are more than double what they should be!! and who the hell can afford a 25% deposit nowadays!! Only those with crazy parents who are prepared to give away all their hard earned savings. and then I should add, if you lend somebody 10 times their salary, anybody can buy any house at any price, which feeds price increases and increase the leval of debt!!
Lets build a lot more reasonable quality houses and regulate the whole industry a lot more and maybe in time prices will come back to where they were 10 years ago and then the average person can really afford a house!!
Posted by waitingtobuy @ 06:55 PM (974 views) Add Comment
9 Comments
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1. Emmo709 said...
I've just gone to the HALIFAX website and placed my above average wage into the HOW MUCH CAN I BORROW calculator and I cant get anywhere near enough to purchase the average priced house. Bring on the crash which will bring this simple equation closer to reality and being fair.
Average House Value = 3 to 4 time the average wage
Therefore (approx):
30K wage = 120K house
2. paul said...
Glad they've used quotes - after all they are quoting someone else's (actually a someone who has a lot to gain from lying) assertion.
The BBC has done no such thing - in the hands of our esteemed state media, such spurious assertions are disseminated as Fact.
3. confused76 said...
affordability is vanishing now that interest rates are going up.
much bigger price reductions than the 15-20% from the 2007 peak are needed in an environment of interest rates moving from 3% to 5-6% (in fact doubling).
Phrases that will be used a lot by the media in the coming six months:
- hung parliament (please read here if you are still not convinced
http://www.timesonline.co.uk/tol/news/world/Afghanistan/article6973745.ece)
- the big dead cat bounce of the housing market in the second half of 2009
- the end of QE
- the gilt market
- fiscal responsibility (yep but noone really wants it)
- IMF rescue
4. watching with amusement said...
The article is correct - housing is more affordable. However, just because they are more affordable, doesn't actually mean that they are affordable...
5. fallingbuzzard said...
Hmmm, I smell BS again. The release this was based on was not mix adjusted. So the average first-time buyer property is defined as the property bought by a first time buyer. What they mean is that the average amount spent by a first time buyer has reduced in relation to earnings. Big deal
6. Skinnerr said...
I want a ferrari but i cant afford one, it is not my right to own a ferrari, i mean its not even my right to own a car period. so to say that house prices are more than double what they should be imo is plain wrong, the prices are what they are, affordable or not. owning property is not a given birthright, it was always something to aspire to, save your deposit up and buy, and if its too expensive then dont. if an average person on an average income cant afford average products, take a bricklaying course, and stop being average.
7. mark wadsworth said...
"Let's build a lot more reasonable quality houses"
Aha, you see, that's the clever thing about Home-Owner-Ism, OT1H they say that want to "encourage home-ownership" but OTOH they say they want to "protect the Hallowed Greenbelt".
As a simplification campaigner, my view is, if you want more people to be home-owners, then just allow more homes to be built. Just like, if you want people to eat more apples, allow farmers to grow more apples and supermarkets to import more apples.
The Hone-Owner-ist view is, if you want people to eat more apples, then you have to simultaneously subsidise apple prices while restricting the supply of apples. So the restrictions push up prices, so then call for more subsidies, and so on ad infinitum.
8. Chris said...
Until more home owners decide to go back onto the market with any real prospect of getting a decent price for their homes, supply will be low, estate agents will continue to over-value in order to win the business for new stock and house "Asking Prices" will continue to rise!
With all new stock going up in price, last years unsold stock is starting to look cheap and any buyers out there are buying the cheaper stuff.
As an EA, this is exactly what is going on. We are selling stuff that's been on the market since Jan 2009, which until the last few months has had no interest whatsoever. When I go out and value property based on what the last similar property in that street sold for, I am told by the vendors that the EA before me gave a much higher valuation, so they are putting the property on the market with them instead!
What do you do. Stick to your guns and not put any stock onto the market or do as they do and over-value, only to get the price back down later!
We also deal with the big builders. Many of them have huge land banks ready to build on, but are holding back at the moment.
Why start employing the workforce again unless they are sure that house prices have stabilised and they can correctly calculate profits v risks.
I used to hear people on this site say that there is no such thing as supply & demand in the property market as there are always loads of properties for sale. This might have been true in 2007 to some extent, but the number of properties each agent has, has reached an all time low and many of the properties they are marketing are selling. Our business ramped up selling fees a few years ago to account for the lower number of sales and in 2009, we have made a greater profit than we did at the peak of 2007. EA are doing well right now.
As for the report. With rates down as low as 2.94% (I.e. 2-year tracker currently available) I am not surprised that property is more affordable. I can't remember rates ever being that low. Interest only mortgage of £230k will only cost £560 a month! It's cheaper to buy than rent if you can find the deposit from Mum & Dad!
9. Orangefender said...
MSN have surreptitiously removed all the comments!