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A short rant, please bear with me.

The main reason prices rise is greed and not a lot else. Ok, a bit of inflation and maybe the occassional localised reason but ultimately, it is down to the pure greed of vendors and EAs.

If we forget for a minute that we are 30% over-priced, I wouldn't object to interest rate cuts if people used them as a chance to stabilise their debts etc. (apart from screwing me as a saver), but they won't. If we get a cut they will use it as an excuse to start raising prices again. Why? You would have thought people (especially EAs) would just be greatful to get turnover again, especially when their jobs are at stake. Can u imagine a world in which every time something was sold the market added 10% to the price. "Hey boss, we sold a Mars Bar for 40p" - "Great, put the price up to 44p - let's test the Mars Bar market"

Vendors, EAs, you are (most but NOT all), greedy b******s.

Just needed to get that off my chest.

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A short rant, please bear with me.

The main reason prices rise is greed and not a lot else. Ok, a bit of inflation and maybe the occassional localised reason but ultimately, it is down to the pure greed of vendors and EAs.

If we forget for a minute that we are 30% over-priced, I wouldn't object to interest rate cuts if people used them as a chance to stabilise their debts etc. (apart from screwing me as a saver), but they won't. If we get a cut they will use it as an excuse to start raising prices again. Why? You would have thought people (especially EAs) would just be greatful to get turnover again, especially when their jobs are at stake. Can u imagine a world in which every time something was sold the market added 10% to the price. "Hey boss, we sold a Mars Bar for 40p" - "Great, put the price up to 44p - let's test the Mars Bar market"

Vendors, EAs, you are (most but NOT all), greedy b******s.

Just needed to get that off my chest.

I know exactly what you mean, we have become a very stupid nation who appear to function entirely with greed in mind and little else....

You will now be penalised for being a saver rather than a borrower (if interest rates do indeed go down today). What a bloody mess, the haves and the have nots. I suppose though, that at some point it will correct and common sense will once again prevail (although I have to say I am not expecting it anytime soon)...

PS Hope your chest is feeling better :)

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Of course prices rise on higher demand

Has anyone else noticed the rapid rise in the price of chocolate bars

over teh alst 10 years?  They are one of the few things that may have kept

pace with rising house prices

Not had a Mars Bar for 11 years now - ever since the cost rose to 8x my lunch allowance

I know a man who bought loads when they were cheep.......rents them out now....can't eat them but get to sniff for a while.......aaaaaaaaaaahhhhhhhhhhhhhhhh

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A short rant, please bear with me.

The main reason prices rise is greed and not a lot else. Ok, a bit of inflation and maybe the occassional localised reason but ultimately, it is down to the pure greed of vendors and EAs.

If we forget for a minute that we are 30% over-priced, I wouldn't object to interest rate cuts if people used them as a chance to stabilise their debts etc. (apart from screwing me as a saver), but they won't. If we get a cut they will use it as an excuse to start raising prices again. Why? You would have thought people (especially EAs) would just be greatful to get turnover again, especially when their jobs are at stake. Can u imagine a world in which every time something was sold the market added 10% to the price. "Hey boss, we sold a Mars Bar for 40p" - "Great, put the price up to 44p - let's test the Mars Bar market"

Vendors, EAs, you are (most but NOT all), greedy b******s.

Just needed to get that off my chest.

Let us not forget the media, although they're not responsible for the bubble forming, they do add to its growth.

I read somewhere that markets primarily consist of two forces, fear and greed. If these two forces are present in roughly equal measure then the market is usually well balanced and performs well. However, when the market tilts and favours one of these forces things start to go wrong.

Crowds (or markets) are usually more intelligent than the most intelligent individual within them. Each individual within the group has their own beliefs, values and information sources. When this collective intelligence is at work it is a very powerful thing, capable of great results and self regulation. Unfortunately intelligent crowds have a tendency to turn in to not so intelligent herds.

It is very hard for an individual to not take notice of his neighbours actions, especially if the neighbour is perceived to be doing better than you. As increasing numbers of individuals abandon their own beliefs and start following that of their neighbours the herd mentality develops, all intelligence and rationality leaves the group and bingo, hello trouble. The media then starts pushing the herd belief system (it's called news I believe) at more and more people until it's very hard to ignore. It takes a very strong person to swin against the tide of positive sentiment. To be told daily that your decisions are wrong is very hard to deal with for any extended period of time, we as humans just aren't built to deal with it.

"Look at all this positive news", they say. "This is the new land of milk and honey", they preach. "How can you say prices will come down", they shout. These arguments have been rolled out bubble after bubble after bubble.

Sorry about the waffle, all I'm trying to say is that a lot of elements are responsible for this house price bubble, just because so many jumped on-board doesn't mean it won't go POP!!!

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A short rant, please bear with me.

The main reason prices rise is greed and not a lot else.

Greed for sure. But also the fact that most people can't do maths. By that I mean doing the maths for the very important calculation that is: How much will I have to spend over my entire working life on paying for my house as a fraction of my total income over my working life.

The fact that people just treat mortgage repayments like gas bills - i.e. if paying it leaves me with a little left over for going to the pub then everything must be fine - means that they think houses are "affordable". It simply does not make sense to think of it that way.

Young people should ask themelves this: If we stay in a low interest rate, low inflation environment for the next 25 years, and hence mortgage repayments stay large as a fraction of take home pay for that time, then how much less well off will I be than my parents, who had years of high wage inflation to do the heavy lifting for them?

Edited by Levy process

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Hi,

Who remembers the dot.com boom? The arguments were far more compelling for that boom, the explosion of a new technology,1000000% increase in information across the world, the entire learnings of mankind condensed onto a disk, sent across the planet at the flick of a switch. That WAS society changing stuff.

Who saw it coming? Not too many. How many of those that did were dismissed? Most, I would say. Does anyone see a pattern emerging here? This time I think it's gone beyond usefulness and deep, deep, deep into greed teritory. Did you see that property prgramme on C4 or C5 about two weeks ago? I don't watch it hence my sketchy knowledge. They showed a pair of ladies at an auction buying a house, redecorating it and reselling it three weeks later for a stagering profit of 2,000 squids. For a month's hard work (16 hour days by the looks of it) and stress. Does that seem pointless to you? I mean, amateur property development can be a good thing. It can add real value to buildings, provide a nice home for someone, regenerate a rundown area, renovate historical areas, make a nice profit for someone. Great! But this was just reselling an existing property with a lick of paint and some new wallchip on the walls for less than min. wage. Oh yeah, it was an auction house as well, probably a repocession. And this is on mainstream television, peak weekday viewing, 8pm. And someone who watches it every week told me it is a fairly typical episode.

Do you think Gordy 'the miracle chancellor' was watching?

Boomer

Let us not forget the media, although they're not responsible for the bubble forming, they do add to its growth.

I read somewhere that markets primarily consist of two forces, fear and greed. If these two forces are present in roughly equal measure then the market is usually well balanced and performs well.  However, when the market tilts and favours one of these forces things start to go wrong.

Crowds (or markets) are usually more intelligent than the most intelligent individual within them. Each individual within the group has their own beliefs, values and information sources. When this collective intelligence is at work it is a very powerful thing, capable of great results and self regulation. Unfortunately intelligent crowds have a tendency to turn in to not so intelligent herds.

It is very hard for an individual to not take notice of his neighbours actions, especially if the neighbour is perceived to be doing better than you. As increasing numbers of individuals abandon their own beliefs and start following that of their neighbours the herd mentality develops, all intelligence and rationality leaves the group and bingo, hello trouble. The media then starts pushing the herd belief system (it's called news I believe) at more and more people until it's very hard to ignore.  It takes a very strong person to swin against the tide of positive sentiment. To be told daily that your decisions are wrong is very hard to deal with for any extended period of time, we as humans just aren't built to deal with it.

"Look at all this positive news", they say. "This is the new land of milk and honey", they preach. "How can you say prices will come down", they shout. These arguments have been rolled out bubble after bubble after bubble. 

Sorry about the waffle, all I'm trying to say is that a lot of elements are responsible for this house price bubble, just because so many jumped on-board doesn't mean it won't go POP!!!

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Do you think Gordy 'the miracle chancellor' was watching?

Doubtful, he'll be sat at home with his copy of "Creative Accounting 101", a calculator unable to display negative numbers and the "UK economy" excel spreadsheet, full of Harry Potter macros.

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a good rant - and true.

ITV news today on the back of the IR rate cut - who was on ???

an EA talking about how this is good news for stagnant prices.

stagnant prices. they are already out of touch. now they expect them to rise because of a cut in the IR. the greedy will simply be mopping up any financial progress.

country has gone house mad.

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A short rant, please bear with me.

The main reason prices rise is greed and not a lot else. Ok, a bit of inflation and maybe the occassional localised reason but ultimately, it is down to the pure greed of vendors and EAs.

If we forget for a minute that we are 30% over-priced, I wouldn't object to interest rate cuts if people used them as a chance to stabilise their debts etc. (apart from screwing me as a saver), but they won't. If we get a cut they will use it as an excuse to start raising prices again. Why? You would have thought people (especially EAs) would just be greatful to get turnover again, especially when their jobs are at stake. Can u imagine a world in which every time something was sold the market added 10% to the price. "Hey boss, we sold a Mars Bar for 40p" - "Great, put the price up to 44p - let's test the Mars Bar market"

Vendors, EAs, you are (most but NOT all), greedy b******s.

Just needed to get that off my chest.

er.... no actually. I don't agree!

It's not as simple as just seller greed. That's just how it may appear to you because you can't afford to buy. This is frustrating I realize.

It's not sellers that determine the price but buyers. So if it sells, it was not over-priced. If Mars bars sell at 40p it's only natural to put up the price to 44p to test the market. We do, after all live in a capitalist economy. Nobody has to buy at 44p.

Buyer greed is the real contributor to HPI rather than seller greed. Sellers are just getting the best price they can, whilst buyers are looking to make an easy profit through speculation. (see greater fool theory)

If I may summarize;

I don't

1.) blame sellers for wanting to get the best price they can. It's basic human nature.

2.) blame individual EAs for squeezing the most out of buyers as possible. They work for the seller and that's their job.

3.) blame BTL investors looking for an investment opportunity.

I do

4.) blame goverment legislation - I think BTL investments (2nd properties?) should be subject to higher tax

5.) blame lenders and EAs for publishing biased statistics giving buyers a misleading impression of the market

6.) blame lazy media reporting and investigation giving an unfair bias towards VI interests.

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er.... no actually. I don't agree!

It's not as simple as just seller greed.  That's just how it may appear to you because you can't afford to buy. This is frustrating I realize.

lol!

I live in the North of England, my partner and I could buy pretty much what we want on our income - part of the reduction in turnover is that some people who could buy now refuse to pay the ridiculous prices that are being asked - i am sure there are plenty of STRs on this forum who COULD buy but aren't that stupid

It's not sellers that determine the price but buyers. So if it sells, it was not over-priced. If Mars bars sell at 40p it's only natural to put up the price to 44p to test the market. We do, after all live in a capitalist economy. Nobody has to buy at 44p.

Buyer greed is the real contributor to HPI rather than seller greed. Sellers are just getting the best price they can, whilst buyers are looking to make an easy profit through speculation. (see greater fool theory)

The difference is that when the Mars Bar didn't sell for 44p and the seller was about to go bust they would say to themselves "40p it is then" - unfortunately we have the GREEDY EAs and sellers who insist that there product is worth their asking prices even though it is clear that no-one wants to buy at the price - instead of saying "ok, it wasnt worth as much as i hoped" they bleat on to all and sundry about needing rates decreases, new mortgage products and lower stamp duty to try and facilitate their price requests - they are the greedy ones

More simplistic, if the product is ok but won't sell, the chances are the price is wrong

Edited by the end is nigh

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Hi,

Who remembers the dot.com boom? The arguments were far more compelling for that boom, the explosion of a new technology,1000000% increase in information across the world, the entire learnings of mankind condensed onto a disk, sent across the planet at the flick of a switch. That WAS society changing stuff.

Who saw it coming? Not too many. How many of those that did were dismissed? Most, I would say. Does anyone see a pattern emerging here? This time I think it's gone beyond usefulness and deep, deep, deep into greed teritory. Did you see that property prgramme on C4 or C5 about two weeks ago? I don't watch it hence my sketchy knowledge. They showed a pair of ladies at an auction buying a house, redecorating it and reselling it three weeks later for a stagering profit of 2,000 squids. For a month's hard work (16 hour days by the looks of it) and stress. Does that seem pointless to you? I mean, amateur property development can be a good thing. It can add real value to buildings, provide a nice home for someone, regenerate a rundown area, renovate historical areas, make a nice profit for someone. Great! But this was just reselling an existing property with a lick of paint and some new wallchip on the walls for less than min. wage. Oh yeah, it was an auction house as well, probably a repocession. And this is on mainstream television, peak weekday viewing, 8pm. And someone who watches it every week told me it is a fairly typical episode.

Do you think Gordy 'the miracle chancellor' was watching?

B&B:

I predicted the dotcom bust a whole year before it finally came: It was TOTALLY obvious that it was coming - only ONE braincell was needed to work out that it was complete and utter madness...... And as far as houseprices are concerned -- the longer the current madness goes on - and particularly the MEDIA continues to peddle the lies and CR@P that one hears every day -- then it is only going to be worse than ever in the next 2-3 years....... It will either be Japan style - years and years of stagnation - or it will be a massive crash...... either way -- it will happen -- absolutely no doubt at all ---- just watch those students with 15 years+ of debt get to the bottom of that ladder - and have NO chance AT ALL of climbing on.....

Edited by eric pebble

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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