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Ftb Keeping The House Market Going

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Jobs going at an alarming rate, Inflation rising, all the symptoms for a HPC so why is the market not crashing.

Simple, because FTB have decided rather than wait a few months they need to get on the property market now.

Nice one all FTB

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in the last crash FTBers also appeared to be jumping in as things were tipping, just as everyone else had stopped buying, according to the morgage graphs.

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Jobs going at an alarming rate, Inflation rising, all the symptoms for a HPC so why is the market not crashing.

Simple, because FTB have decided rather than wait a few months they need to get on the property market now.

Nice one all FTB

I will allow you some insight, FTB applications are slightly up, however, what is alarming is the amount that are miles away from stacking up and immediately rejected...Also...ssshh...there is an element of credit tightening in as much as 100%s are not as widely available and the guys at RICS are having to value properly for the first time in years ;) All you had to do was ask nicely... there`s always some smart **** on here that can help :rolleyes:

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Guest Baffled_by_it_all

I care about life and normal things.

That's why I've balked at paying over the odds for a two bedroom flat that's going to leave me paying through the nose for the next 25 years.

Get a grip. Stuff's overpriced and there a more important things in life than being shackled to a huge debt.

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Thats because most FTB care more about life and normal things, than picking the correct time to invest in property :)

It's not about investing it's about buying at a price that isn't going to cause you financial hardship. So your saying paying over the odds for something is 'normal' - I don't think so.

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Owning a house is not about 'life and normal things', its about doing what society tells you to. After all you can manage quite nicely in rented accomodation. If interest rates were 20% would you advise FTB's to buy and get on with 'life and normal things' or wait for interest rates to fall?

Negative equity, repossession and homelessness are not 'life and normal things' in my book.

On another point, I believe that the housing market in the UK is incapable of stagnating for long. Every time prices level out, people start (or are told) to jump back on the bandwagon and this starts to push prices back up again.

This may happen a few times until people realise that the increases just aren't there any more or interest rates start to go up.

Finally, a period of stagnation is a precursor to a fall. Once this starts, coupled with interest rate rises, market sentiment will turn and people/institutions start to panic sell.

The crash will come, the recent FTB's will burn and the auctions will make rich pickings once again.

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On another point, I believe that the housing market in the UK is incapable of stagnating for long.

I often see this statement here in one form or another.

Why do you think it's incapable of stagnation? It stagnated for most of the sixties and a good part of the seventies. I'm not saying it will necessarily, but I can't see any conceivable logic to the idea that it is "incapable of stagnating".

Edited by Magpie

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I often see this statement here in one form or another.

Why do you think it's incapable of stagnation? It stagnated for most of the sixties and a good part of the seventies. I'm not saying it will necessarily, but I can't see any conceivable logic to the idea that it is "incapable of stagnating".

Blind faith/wishful thinking unfortunately...

I remember starting a topic to discuss what could be the triggers to send interest rates to 7-8% or cause mass unemployment which you would need for a HPC, i didn't get a single reply. People are simply preying for a HPC and holding onto the hope of one.

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Blind faith/wishful thinking unfortunately...

I remember starting a topic to discuss what could be the triggers to send interest rates to 7-8% or cause mass unemployment which you would need for a HPC, i didn't get a single reply. People are simply preying for a HPC and holding onto the hope of one.

I don't mind decent bear arguments. There are many reasons to believe that prices are too high, and it's perfectly possible that nominal prices will fall.

But it bothers me when there are weak links in the argument like this one - saying that house prices "can't stagnate" or "never stagnate". That's actually been the most common way for prices to correct in the last fifty years, so it's best not to count on it not happening again.

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I don't mind decent bear arguments. There are many reasons to believe that prices are too high, and it's perfectly possible that nominal prices will fall.

But it bothers me when there are weak links in the argument like this one - saying that house prices "can't stagnate" or "never stagnate". That's actually been the most common way for prices to correct in the last fifty years, so it's best not to count on it not happening again.

Couldn't agree more, house prices are overvalued, no doubt - the question is whether it corrects via a lengthy inflation adjusted period (stagnation) or a quick crash in nomial terms.

I'd love a crash - but I don't see the triggers despite my best efforts.

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  • 338 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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