Sunday, May 16, 2010
Not sure I believe this bullish article
|Times: First-time buyers stung as house prices rise again
House prices rose by 0.7 per cent in March, the fifth consecutive month of increases, according to the Government’s official measure. This brings the annual UK rise to 9.7 per cent. The average house price is now £205,598, the Department for Communities and Local Government (DCLG) said. It found that price rises had disproportionately affected first-time buyers. Prices of homes bought by first-time buyers have risen by 12.6 per cent in the past 12 months, compared with 8.6 per cent for properties bought by home movers.
Posted by hpwatcher @ 06:19 PM (1707 views) Add Comment
10 Comments
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1. hpwatcher said...
I'm seeing lots more property and cheaper prices in the areas I have been looking at.
2. titaniccaptain said...
Same here HPW!!!!
I have dropped my house down from 360,000 valued at peak lol to 170,000.....that may seem like alot but I am seeing houses which were priced as mine falling into the same price range all over the Wales.....it really is crashing here big time.
I have been monitoring some houses like mine that haven't shifted and they are just giving them away......or should I say making them more affordable.
I will drop mine down to whatever level the houses I am looking at fall to.
3. mark wadsworth said...
@ HPW, dinnae ye fret...
a) What you observe local to you is far more important than national trends (and let's not dispute that in some small areas, prices are still going up)
b) HM Land Reg figures lag Haliwide by two or three months (but are otherwise very similar) whereas the DCLG figures are completely made up and bear no relationship to anything.
4. wdbeast said...
HPW - It's not Bullish, it's Bullisht
5. miken said...
Fear not everyone, the austerity measures haven't really started yet. Give it another 3-6 months before significant drops will be seen.
6. novice pete said...
Lots of people don't want me to buy their house then, fair enough, I won't buy.
7. icarus said...
I douby if the UK is very different in this regard from the US. For what it's worth here's a relevant story. Senior US judge Elizabeth Warren has a long history of dealing with bankruptcy cases in the US and has undertaken extensive research in the area. When she started in this area a couple of decades ago her assumption was that personal bankrupts were feckless and/or cheats but eventually she came to the following conclusions about the massive spread of bankruptcy.
In real terms wages grew as the economy grew for the first 70-odd years of the 20th century. Since then a fully employed man's wages have stagnated or declined, necessitating two-earner families. This means a sudden drop in income if the second earner has to take off time to look after somebody. In real terms, compared with 30 years ago people spend less on food (including eating out), clothing, furniture and appliances and more on housing - the median family spends 80% more (inflation-adjusted) on mortgage payments than they did a generation ago (more than that for families with children, since there is a premium on housing in the catchment area of a good school), 75% more on health insurance and 60% more on cars (1 job = 1 car, 2 jobs = 2 cars), and a lot more on childcare (unnecessary when there was only one earner).
The two earners (with one often taking time off and not earning) have less left over than the one-earner family of the 1970s. If one loses his/her job the chances are lower now that he/she will find another that pays the same. They're also less secure in terms of retirement. More and more middle class families are living paycheque to paycheque, dealing with debt collectors and late fees and paying 20%+ interest on credit cards.
8. icarus said...
oops, that was meant to be a response to the previous posted article (apologies if you see it re-posted there).
9. alan_540 said...
Which is why we're all on here hoping for a house price correction, although cheaper cars and childcare would also be nice.
10. Positivo said...
I dont believe it either. I have been looking to buy in Crewkerne for the past two years. Last March 2 bedroom houses were going for 75 - 85 K, today they are up for sale for 95 - 110K. The odd one is selling (literally odd one), but the rest just sit there with no movement. So these stats are based on the odd desperate person buying an overpriced house. Just follow house prices on the internet to see the percentage selling at a higher price doesnt even reach double digits.