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keef319

Silly Question...

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On the graph on the homepage, it shows that house prices are now below the long term average.

So, why are houses overpriced?

(by the way I'm all for house prices to drop / crash, but feeling the urge more and more to just bite the bullet and buy somewhere, even without a fantastic deposit)

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That's not the long term average, it is the 'trend'.

The trend has been rising, not so now, hence it is below it.

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Yes, when prices go up the trend goes down. When prices fall, the trend goes down.

I suspect that the Express headlines have probably duped some folk into thinking "houses now cheap says expert" or somesuch.

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Also, the trendline is exponential. And nothing is ever truly exponential for ever. The line is a nonsense.

Look at the very last two graphs in this document:

http://www.nationwide.co.uk/hpi/historical/Aug_2011.pdf

One is the graph you're referring to, the other is price against earnings. Why the two different lines, trend or otherwise. No idea. It is a nonsense.

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On the graph on the homepage, it shows that house prices are now below the long term average.

So, why are houses overpriced?

(by the way I'm all for house prices to drop / crash, but feeling the urge more and more to just bite the bullet and buy somewhere, even without a fantastic deposit)

The graph is showing house prices adjusted for inflation which have flunked.

http://www.nationwide.co.uk/hpi/historical.htm

Download the xls. Takes a second to get your head round it but it's the most accurate I've seen. According to the data. real house prices peaked Q3 2007 and now they are back at 2003 prices.

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  • 343 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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