Fancypants Posted November 7, 2011 Share Posted November 7, 2011 Exactly. Bank of England exists to support banks. It couldn't care less about people. Succinctly put. Folk would do well to be more aware of this. Quote Link to comment Share on other sites More sharing options...
Peter Hun Posted November 7, 2011 Share Posted November 7, 2011 Let's hope it's just statistical noise due to low transaction levels. Its statistical noise over the eight-ten years of a crash. Quote Link to comment Share on other sites More sharing options...
moonriver Posted November 7, 2011 Share Posted November 7, 2011 Today they're saying buying a house is very stressful! http://www.express.c...ges-you-2-years "Common side-effects include hair loss (10 per cent), short-term memory failure (14 per cent) and diminished sex drive (19 per cent) with the process ageing anxious buyers and sellers by 25 months over the average 15-week house-buying period." a few good reasons there then for HPC'ers to carry on renting. Quote Link to comment Share on other sites More sharing options...
Conrad Posted November 7, 2011 Share Posted November 7, 2011 I am one of those who has given in and bought a home due to family factors. Bought with 10% of list price, but its 20% off of peak with 15 % deposit 4% fixed mortgage. Inflation is happening and although the argument that wage inflation won't happen maybe true to some extent, I see my job sector increasing wages and if my career is taking off and I'm in demand so there seems to be no better time than to take on 300k of debt! I don't have any other debts, wife also works and we can get by with one person servicing the mortgage. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted November 7, 2011 Share Posted November 7, 2011 Certainly the ones I've been eyeing up - most of which had been sat doing nowt all summer - many went SSTC in the last few weeks. I agree with you, this rise was predictable. Things looked bleak in August and running into the start of September, but I noticed a flurry of SSTC signs going up from around the end of September. The same thing happened in October 2010, which begs the question have the Haliwide got their seasoning wrong. I assume these stats are seasoned upward, yet in my book October has been second only to March for a good time to get a buyer in recent years. I am all for seasoning to smooth things out, but not if they are applying increases to boom months. Quote Link to comment Share on other sites More sharing options...
Malkin Posted November 7, 2011 Share Posted November 7, 2011 I am one of those who has given in and bought a home due to family factors. Bought with 10% of list price, but its 20% off of peak with 15 % deposit 4% fixed mortgage. Inflation is happening and although the argument that wage inflation won't happen maybe true to some extent, I see my job sector increasing wages and if my career is taking off and I'm in demand so there seems to be no better time than to take on 300k of debt! I don't have any other debts, wife also works and we can get by with one person servicing the mortgage. I've done exactly the same. 8% off asking, 18% off peak - 5yr fixed rate 4.5%. sort of regretting the fixed rate but time will tell. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 7, 2011 Share Posted November 7, 2011 At no time in the last five years have I been more relaxed about having my funds in liquid cash. The more they try to scare me into buying now, the more apparent is their desperation. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 7, 2011 Share Posted November 7, 2011 (edited) Please note....releative to inflation...house prices are now down 7% this year. Relative to my savings and investments, they are down 5%. Relative to my pay rise they are down 3.6% Relative to inflation since 2007, down approx 35% Relative to my savings since 2007, down approx 30% Relative to my pay rises since 2007, down approx 25 % You can't loose on housing. So long as I dont buy a house at 2007 prices, I am quids in. The only issue is, with a small number of buyers giving false home to anyone selling a house, it's hard to find a buyer willing to accept reality. The only thing now that wuill force that issue, is interest rates going up, or European banking collapse.....the 2nd seems most likely. Edited November 7, 2011 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
rantnrave Posted November 7, 2011 Author Share Posted November 7, 2011 I am one of those who has given in and bought a home due to family factors. Bought with 10% of list price, but its 20% off of peak with 15 % deposit 4% fixed mortgage. Inflation is happening and although the argument that wage inflation won't happen maybe true to some extent, I see my job sector increasing wages and if my career is taking off and I'm in demand so there seems to be no better time than to take on 300k of debt! I don't have any other debts, wife also works and we can get by with one person servicing the mortgage. I'm sure you've factored in a return to more normal interest rates. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted November 7, 2011 Author Share Posted November 7, 2011 You can't loose on housing. Or speeling Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 7, 2011 Share Posted November 7, 2011 Or speeling Sorry, I didn't realise the typing police were out today. I will be more careful officer. Quote Link to comment Share on other sites More sharing options...
NEO72 Posted November 7, 2011 Share Posted November 7, 2011 Small anecdotal: Went to view a place a few months back. Very, very motivated seller - two 10K drops in a couple of months and on the (relatively) cheap side anyway. Spoke to the EA, asked what sort of figure vendor would take...with absolutely no prompting or negotiation she said "somewhere around 180K" (it was on for £195K). Checked the sold price the other day....£195K!!!! FFS!!! This is a town in Somerset, not an awful lot moving, fair few asking prices being reduced, not superprime, not even prime, just an average home in an average town (literally - prices here follow the index averages closely). Moral of the story - while we have low volumes combined with bellends who roll up offering asking price under no pressure WHATSOEVER we will see indexes such as the Halifax holding up (or at least not falling as fast as they should). My only consolation is that the pool of idiots with sufficient cash deposits to make getting a mortgage worthwhile (i.e. more money than sense) will eventually run dry. Quote Link to comment Share on other sites More sharing options...
Conrad Posted November 7, 2011 Share Posted November 7, 2011 I'm sure you've factored in a return to more normal interest rates. If normal rates come back e.g 5 - 8 %. yes we can manage if we are both working and rates are at that level. Also as much as I hate the idea of SMI it if anything should happen then there is a safety net for mortagees, not for private renters (which I was for 4 years!) Quote Link to comment Share on other sites More sharing options...
rantnrave Posted November 7, 2011 Author Share Posted November 7, 2011 Sorry, I didn't realise the typing police were out today. I will be more careful officer. Quote Link to comment Share on other sites More sharing options...
moonriver Posted November 7, 2011 Share Posted November 7, 2011 The only issue is, with a small number of buyers giving false home to anyone selling a house, it's hard to find a buyer willing to accept reality. Plus unfortunately positive figures like these out today, will also give false hope to sellers, because sentiment is so important in the housing market. Quote Link to comment Share on other sites More sharing options...
moonriver Posted November 7, 2011 Share Posted November 7, 2011 (edited) The same thing happened in October 2010, which begs the question have the Haliwide got their seasoning wrong. I assume these stats are seasoned upward, yet in my book October has been second only to March for a good time to get a buyer in recent years. I am all for seasoning to smooth things out, but not if they are applying increases to boom months. Interesting point. I too thought September/October was known as a busy buying period, because people bought before winter set in, and in order to get into their dream homes before Christmas. Edit.. submitted in error, without posting reply beforehand. Edited November 7, 2011 by moonriver Quote Link to comment Share on other sites More sharing options...
leicestersq Posted November 7, 2011 Share Posted November 7, 2011 ZIRP + QE + SMI = :angry: Probably there would have been no 1989-92 crash if interest rates were cut then from 15% to 0.5% and the government paid people's mortgages for them. Uncontrolled immigration. This is the biggest issue. Quote Link to comment Share on other sites More sharing options...
Fancypants Posted November 7, 2011 Share Posted November 7, 2011 At no time in the last five years have I been more relaxed about having my funds in liquid cash. The more they try to scare me into buying now, the more apparent is their desperation. Well, one should never be panicked into buying when prices are rising from a point which is already too high. Just saddened by the continued resistance to sanity. Quote Link to comment Share on other sites More sharing options...
Simon Brown Posted November 7, 2011 Share Posted November 7, 2011 Well, one should never be panicked into buying when prices are rising from a point which is already too high. Just saddened by the continued resistance to sanity. So you're implying that I shouldn't rush out and buy Cornwall this month, rather wait until next year? Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted November 7, 2011 Share Posted November 7, 2011 Small anecdotal: Went to view a place a few months back. Very, very motivated seller - two 10K drops in a couple of months and on the (relatively) cheap side anyway. Spoke to the EA, asked what sort of figure vendor would take...with absolutely no prompting or negotiation she said "somewhere around 180K" (it was on for £195K). Checked the sold price the other day....£195K!!!! FFS!!! This is a town in Somerset, not an awful lot moving, fair few asking prices being reduced, not superprime, not even prime, just an average home in an average town (literally - prices here follow the index averages closely). Moral of the story - while we have low volumes combined with bellends who roll up offering asking price under no pressure WHATSOEVER we will see indexes such as the Halifax holding up (or at least not falling as fast as they should). My only consolation is that the pool of idiots with sufficient cash deposits to make getting a mortgage worthwhile (i.e. more money than sense) will eventually run dry. The problem about small towns in Somerset, or just about anywhere in the UK, is that there are a lot of numpties who still believe in house prices rising and/or who think that offering 3K below asking is a bold move. When they get turned down they up to the full asking price. Add in the people on 'safe' public sector jobs and no wonder what you saw is continuing to happen. Quote Link to comment Share on other sites More sharing options...
Simon Brown Posted November 7, 2011 Share Posted November 7, 2011 The problem about small towns in Somerset, or just about anywhere in the UK, is that there are a lot of numpties who still believe in house prices rising and/or who think that offering 3K below asking is a bold move. When they get turned down they up to the full asking price. Add in the people on 'safe' public sector jobs and no wonder what you saw is continuing to happen. There are also people with cash who are looking for a house which they'll buy to live in, maybe for the rest of their lives. If the price looks right they'll buy. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 7, 2011 Share Posted November 7, 2011 There are also people with cash who are looking for a house which they'll buy to live in, maybe for the rest of their lives. If the price looks right they'll buy. I fall into that category but the price is nowhere near right at the moment. Quote Link to comment Share on other sites More sharing options...
moonriver Posted November 7, 2011 Share Posted November 7, 2011 I fall into that category but the price is nowhere near right at the moment. Me too. Quote Link to comment Share on other sites More sharing options...
Simon Brown Posted November 7, 2011 Share Posted November 7, 2011 Me too. Well I'm buying Cornwall next year even if I have to euthanise a few natives to get the house I want. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted November 7, 2011 Share Posted November 7, 2011 I fall into that category but the price is nowhere near right at the moment. There are clearly a lot of people who have got used to the post-peak prices and have lost any reference to income multiples or the fact prices were a third of their present level in the trough of the mid-nineties. I also agree with the Masked tulip re. competing with public sector buyers. In my town, prices appear to be holding up of late with the two main employers being a hospital and university. I'm not actually feeling very confident about any further correction anytime soon, especially in view of Merv's postion on this; clearly he is going to do whatever it takes to keep prices artificially inflated. Quote Link to comment Share on other sites More sharing options...
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