dipstick Posted June 23, 2005 Share Posted June 23, 2005 (edited) Does anybody on here think house prices will go up .......and if so why? Why I put How instead of House in the title I don't know! Edited June 23, 2005 by dipstick Quote Link to comment Share on other sites More sharing options...
classixuk Posted June 23, 2005 Share Posted June 23, 2005 Does anybody on here think house prices will go up .......and if so why?<{POST_SNAPBACK}> Yes, house prices will go up. I say this because house prices have always increased over the long term. Right now though we're at a stage in time known as a bubble. This basically means that today's house prices are too expensive and will go through a price correction. House prices will reduce, then stagnate and then begin to increase again. When our kids are in their late 20's, house prices will be higher than they are today, but then again the price of everything else will be too. That's the way of the world. Quote Link to comment Share on other sites More sharing options...
dipstick Posted June 23, 2005 Author Share Posted June 23, 2005 I was thinking more of the short term rather than the long term classix. Unfortunately I have been around long enough to understand the long-term implications of price rises but at the moment I am trying to decide when to buy, not particularly bothered about buying at rock bottom, but don't want to join the ridiculous rip-off of todays market. Quote Link to comment Share on other sites More sharing options...
Once in a lifetime Posted June 23, 2005 Share Posted June 23, 2005 Strange question dipstick? out of fear or hope? Quote Link to comment Share on other sites More sharing options...
dipstick Posted June 23, 2005 Author Share Posted June 23, 2005 Hope (with a bit of fear thrown in). But not because I want them to go up, I actually sold mine at the peak in our area and have been renting ever since (nighmare). Just want to pay a fair price for a place to call home. Not house, not investment, not capital. Just plain home. Hasn't it been fear that has driven this stupid market in the first place: fear that if they didn't get on the ladder they never would, fear that they may miss out on profits. Just a tiny bit of me still thinks there maybe enough frightened folk out there to push it up another tad instead of it going in the sensible direction. Wanted to know what you lot's objective opinion was? Quote Link to comment Share on other sites More sharing options...
classixuk Posted June 23, 2005 Share Posted June 23, 2005 I was thinking more of the short term rather than the long term classix.Unfortunately I have been around long enough to understand the long-term implications of price rises but at the moment I am trying to decide when to buy, not particularly bothered about buying at rock bottom, but don't want to join the ridiculous rip-off of todays market. <{POST_SNAPBACK}> Ah, sorry Dipstick! Over the short term I believe that until Autumn arrives we will continue to see a small (2-3%) rise in ASKING prices, but the amount of property transactions either stagnating or falling nominally. The amount of time a house remains on the market will reduce as sellers accept offers considerably below their original asking price, but they will offset this upwards through the chain. Around September we will start to see more "new price/reduced for quick sale" advertisements from estate agents as vendors wives panic that that they will not be in their new home by Christmas. Buyers around this time will be buying at around 10-15% below original asking price and neighbours will begin to compete e.g. stamp duty paid, contract races etc. The number of transactions will then fall again and by November's budget awareness of property prices falling will become more widespread among the public. This prediction is made regardless of whether interest rates drop or stay the same. Good luck! Quote Link to comment Share on other sites More sharing options...
dipstick Posted June 23, 2005 Author Share Posted June 23, 2005 Thanks for that Classix! Quote Link to comment Share on other sites More sharing options...
gilf Posted June 23, 2005 Share Posted June 23, 2005 Does anybody on here think house prices will go up .......and if so why?Why I put How instead of House in the title I don't know! <{POST_SNAPBACK}> How the market has got this far i'll never know, it was difficult and expensive for me to buy a place back in 2000 even on a very decent wage at the time and I even had to move 70 miles outside of London to be able to afford something decent back then. In part it's been pushed up by BTL and also people extending themselves too far (via Self Cert mainly but also getting other forms of credit etc). Now were in this stage of stagnation for want of a better word I think slowely these 2 will go almost completely from the market. People keep going on about missing boats but for a lot of people (and when I say that I mean really a lot) just can't afford to buy whatever they do. I think all thi stalk of long term stagnation is simply used because they know the numbers don't stack up now and the only thing they can say other than crash/reduction is that eventually wages will catch up. Quote Link to comment Share on other sites More sharing options...
dipstick Posted June 23, 2005 Author Share Posted June 23, 2005 One of the most irritating "push" factors for me has been the lax and irresponsible attitude of lenders. If the government really wanted to control HPI and put people back on the property ladder lending should have been legislated harder a good while back. According to a Scottish property website, the average lend in England is now 5x as compared to Scotlands 3.5x. I've also seen 130% mortgages advertised (clear your debts at the same time as buying a house!) and tie yourself up for God knows how many years ( I think one lender does 45). The government has played on the snob value of "your property is worth x amount, therefore you are better off for it". These are the same buildings for heavens sake. I know it's not an investment situation but if I went out to buy a sofa today and it's price had doubled since yesterday, would I be more affluent for buying it or just plain stupid? Quote Link to comment Share on other sites More sharing options...
MrB Posted June 23, 2005 Share Posted June 23, 2005 When our kids are in their late 20's, house prices will be higher than they are today, but then again the price of everything else will be too. That's the way of the world.<{POST_SNAPBACK}> The big differences this time round are: 1. Houses have never ever been so over valued in the history of the country 2. Inflation is very low (therefore "the price of everything else will be too" isn't really accurate. 3. Mortage length. A FTB these days needs a 35 yr mortage, with no chance of inflation reducing the real value of this debt for a long long time. When our kids are in their 20's will they have 65 year mortgages? Quote Link to comment Share on other sites More sharing options...
classixuk Posted June 23, 2005 Share Posted June 23, 2005 I know it's not an investment situation but if I went out to buy a sofa today and it's price had doubled since yesterday, would I be more affluent for buying it or just plain stupid?<{POST_SNAPBACK}> Excellent way of summing up this whole crazy situation! I'm using that in my sig from now on! Thanks! Quote Link to comment Share on other sites More sharing options...
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