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Realistbear

So Who Is Right About House Prices?

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http://icbirmingham.icnetwork.co.uk/birmin...-name_page.html

So are house prices going up or down? A lot of us would like to know, not least the Bank of England's interest-setting committee which has enough puzzles on its mind without the threat of another house-price explosion.
In January, Nationwide says they went up by a brisk 1.4 per cent. Halifax says they fell, for the first time since last May. Put that way, they cannot both be right. Equally, neither can be wrong.
A separate puzzle arises from the 122,000 mortgages approved in December, a number last seen in May, 2004, when the boom was still going full tilt. In the past a surge of demand like that would have presaged riproaring house-price inflation - more like 20 per cent a year than ten.
Yet there is absolutely no sign of that
. Sellers, it seems, have come out in force to match what is said to be pent-up demand from buyers who sat on their hands last year for fear the market was about to crash.
Now why should all these home-owners decide to sell up in the middle of winter?
Where are they going to live?

Does the Brummy Post smell a rat? Are the VI figures masking a far grimmer picture that anecdotal evidence seems to suggest is the reality? Is the HPC well and truly underway despite the miniscule drops being admitted by the VIs?

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A number of houses I have seen for sale at the moment are at prices round about 2004 prices (they seem to have gone up between 2004/2005, then going down back down to 04 prices) ... so could people be taking out mortgages to buy these house at the same prices the sellers bought them for circa 2004? Maybe people who bought in 2004 are bailing out whilst they have a chance to get back what they paid for it?

Therefore more mortgages, but little HP inflation as the pricess have not changed.

Just a thought ...

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A number of houses I have seen for sale at the moment are at prices round about 2004 prices (they seem to have gone up between 2004/2005, then going down back down to 04 prices) ... so could people be taking out mortgages to buy these house at the same prices the sellers bought them for circa 2004? Maybe people who bought in 2004 are bailing out whilst they have a chance to get back what they paid for it?

Therefore more mortgages, but little HP inflation as the pricess have not changed.

Just a thought ...

Or re-mortgaging.. rife since people were stung at 4.75%

Most home owners I know have gone to a fixed rates.

But also most home owners I know havent bought at peek or used their houses as piggy banks..

Actually piggy bank is wrong..

You are borrowing against your house and making your ownership of your house a furhter away target.

You are not borrowing against something you own

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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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