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Rising House Prices Used To Be Considered Good News. Not Any More


WageWar

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HOLA441
...a new poll confirms it's not just a generation of priced-out Londoners who are rebelling: anger about an overheated market has spread across the country.

http://www.theguardian.com/society/2014/feb/12/rising-house-prices-not-good-homeowners

Not sure if this has already been posted. George Osborne has bet on high house prices winning him the next election. Maybe it will be the opposite. Are none of you Guardian readers BTW? The Guardian is writing some interesting stuff about the effect of high house prices.

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HOLA442

For many it can't have been a very edifying event when last September Osborne decided to make a government keynote speech on the UK economy at 1 Commercial Street a property development building site and with an audience likely full of property developers and estate agents etc.

Edited by billybong
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HOLA443
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HOLA444

The surveyors have warned today about rising prices. Sales volumes are still at near historic lows so they seem to be worried. With interest rates low and forbearance by banks supply The hope is that as prices rise more sellers come forward. If the supply doesn't materialise and affordability worsens the gov will have to intervene again as the volumes may start at these low levels or worse actually start falling.

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HOLA445
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HOLA446

The surveyors have warned today about rising prices. Sales volumes are still at near historic lows so they seem to be worried. With interest rates low and forbearance by banks supply The hope is that as prices rise more sellers come forward. If the supply doesn't materialise and affordability worsens the gov will have to intervene again as the volumes may start at these low levels or worse actually start falling.

What they'll have to keep going is their

PREDATORY LIAR LOANS....

THAT has been their Secret Weapon all along...... :rolleyes::rolleyes:

Edited by eric pebble
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HOLA447
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HOLA448

http://www.theguardian.com/society/2014/feb/12/rising-house-prices-not-good-homeowners

Not sure if this has already been posted. George Osborne has bet on high house prices winning him the next election. Maybe it will be the opposite. Are none of you Guardian readers BTW? The Guardian is writing some interesting stuff about the effect of high house prices.

And even discussing monetary reform:

http://www.theguardian.com/business/economics-blog/2014/feb/06/change-uk-money-system-solve-long-term-economic-problems

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HOLA449

The surveyors have warned today about rising prices. Sales volumes are still at near historic lows so they seem to be worried.

Rubbish!

The problem with these reports is they all seem to think the levels during the 'boom' were normal.

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HOLA4410

But gaining considerable momentum

The weather is just one of many things that will kill sentiment towards property going forward. BBC yesterday - McVeigh chick and some councillor from a flooded town - "Blah Blah...sandbags...blah blah...highest ever...blah blah...terrible...blah blah...pulling together....and some people are going to find it impossible to insure their properties in future....Okay, thanks for your time, lets move on, thanks, Bye."

It is all about property and property prices in this country now, even the elements are getting pissed off.

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HOLA4411

http://www.theguardi...good-homeowners

Not sure if this has already been posted. George Osborne has bet on high house prices winning him the next election. Maybe it will be the opposite. Are none of you Guardian readers BTW? The Guardian is writing some interesting stuff about the effect of high house prices.

Watching Osborne trying to kill off currency union today, like a second rate baddie from Rob Roy or Braveheart, I couldn`t help thinking that a lot of bad stuff is going to happen on his watch between now and the election :lol: He is a lot less assured, and Carney was looking weak in an interview I saw yesterday also, the questions seemed to be rattling him a bit.

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HOLA4412

http://www.theguardian.com/society/2014/feb/12/rising-house-prices-not-good-homeowners

Not sure if this has already been posted. George Osborne has bet on high house prices winning him the next election. Maybe it will be the opposite. Are none of you Guardian readers BTW? The Guardian is writing some interesting stuff about the effect of high house prices.

Yes, I have been reading the Guardian website a lot lately. some good articles on housing and price rise issues facing the UK.

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HOLA4413

Watching Osborne trying to kill off currency union today, like a second rate baddie from Rob Roy or Braveheart, I couldn`t help thinking that a lot of bad stuff is going to happen on his watch between now and the election :lol: He is a lot less assured, and Carney was looking weak in an interview I saw yesterday also, the questions seemed to be rattling him a bit.

I heard Osborne. He knows nothing. No-one can stop an interdependent Scotland using whatever currency they see fit. They could use US dollars if they wanted to!

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HOLA4414

I heard Osborne. He knows nothing. No-one can stop an interdependent Scotland using whatever currency they see fit. They could use US dollars if they wanted to!

Very difficult to adopt another country's currency in practice without its cooperation. Nigh on impossible.

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HOLA4415

Very difficult to adopt another country's currency in practice without its cooperation. Nigh on impossible.

I wouldn't say impossible. Unwise and undesirable, Scotland would have no say on the money supply or on interest rates. What I meant was that Osborne has no control of what tokens the people of Scotland decide to trade with. Whatever the Scottish government decide to do.

Did Zimbabwe have to ask the USA before using US dollars? If there is no alternative people will use whatever they have, won't they? or did Osborne have a say in that too?

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HOLA4416

But gaining considerable momentum

I think the figures they had were average of 16 a month per agent to 21 a month this year. They operate at what 2% margins so 21x2% x170k average house is about 71k a month per Ea. I don't know their cost side but in my area agents have been fighting to sell with a few agents offering 1% selling fees. Others have been heavily investing in IT, mobile aps.

But yes there is momentum from low base.

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HOLA4417
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HOLA4418

Very difficult to adopt another country's currency in practice without its cooperation. Nigh on impossible.

The distinction people are missing is the difference between using a currency and controlling it.

Scotland could use an English pound, but the bank of England would no longer consider Scottish needs when it came to setting interest rates, printing money or bailing out bust financial institutions.

So it could work as a short term interim thing, but sooner or later Scotland would need to plan and introduce its own currency or join the Euro. This is something they should have been thinking about at the very start of the whole independence process - the SNP was founded in 1934 and they only just got around to this now, a few months before the vote!

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HOLA4419

I think the figures they had were average of 16 a month per agent to 21 a month this year. They operate at what 2% margins so 21x2% x170k average house is about 71k a month per Ea. I don't know their cost side but in my area agents have been fighting to sell with a few agents offering 1% selling fees. Others have been heavily investing in IT, mobile aps.

But yes there is momentum from low base.

I'd like to see the SSTC to stock ratio if there is such a thing. That is the difference I am seeing in the Market and which has finally reversed nine years of falling prices in the North of England.

21 from 16 is indeed insignificant....but if that was 16 sold in a month/ out of total 80 stock to 21/50 now then the ratio has doubled from 20% to 42% and this causes the price pressures we are seeing.

Perhaps an EA could enlighten me on this theory?

There was time in the north when you could look at a rightmove page and not a single listing was sold, the obvious conclusion was that the Market was completely broke and prices were falling. Try a page since the New Year and more than half the stuff is sold.

Edited by crashmonitor
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HOLA4420

I'd like to see the SSTC to stock ratio if there is such a thing. That is the difference I am seeing in the Market and which has finally reversed nine years of falling prices in the North of England.

21 from 16 is indeed insignificant....but if that was 16 sold in a month/ out of total 80 stock to 21/50 now then the ratio has doubled from 20% to 42% and this causes the price pressures we are seeing.

Perhaps an EA could enlighten me on this theory?

There was time in the north when you could look at a rightmove page and not a single listing was sold, the obvious conclusion was that the Market was completely broke and prices were falling. Try a page since the New Year and more than half the stuff is sold.

Less EAs too..

My EA has just closed the residential department....lack of sales.

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HOLA4421
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HOLA4422

I'd like to see the SSTC to stock ratio if there is such a thing. That is the difference I am seeing in the Market and which has finally reversed nine years of falling prices in the North of England.

21 from 16 is indeed insignificant....but if that was 16 sold in a month/ out of total 80 stock to 21/50 now then the ratio has doubled from 20% to 42% and this causes the price pressures we are seeing.

Perhaps an EA could enlighten me on this theory?

There was time in the north when you could look at a rightmove page and not a single listing was sold, the obvious conclusion was that the Market was completely broke and prices were falling. Try a page since the New Year and more than half the stuff is sold.

Don't forget that EAs like to look like they're selling stuff. Often, it comes back onto the market after a month or so, sometimes even with a new listing to disguise the fact.

Never underestimate the deceit of an EA.

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HOLA4423

Or just re-list the ones sold last year or a few months ago as 'new' and then change to 'sstc' a couple if days later or just re-list as 'new' and 'sstc'. This is what one of our EAs does all the time. It creates the illusion that property is selling even before the EA has had time to list it on rightmove. Don't miss out ... selling fast.

I agree. in my area if a house is to let and for sale, a letting always means the house also goes SSTC. Which of course is possible, a house sold to a landlord; but not every time.

Nevertheless if you take the standpoint that 10% of solds are bogus, that will have always been the case and you still have a visibly improved market even if it is bigged up by bogus sales.

Edited by crashmonitor
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HOLA4424

http://www.theguardian.com/society/2014/feb/12/rising-house-prices-not-good-homeowners

Not sure if this has already been posted. George Osborne has bet on high house prices winning him the next election. Maybe it will be the opposite. Are none of you Guardian readers BTW? The Guardian is writing some interesting stuff about the effect of high house prices.

Not surprised, when it's less than half the population who are the ones making money out of house price increases and more than half who aren't there isn't going to be the majority in favour. In fact worse there is going to be division.

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HOLA4425

Read somewhere (pricedout?) that there are now more renters than people with mortgages. And 14% want prices to rise with 20% wanting falls and 65% wanting stability ... ie retain the value of their 'investment'.

More renters than mortgage slaves but not more than outright homeowners.

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