Thursday, November 9, 2006
in 2001 average prices were 92K…
The average house price in 2001 was 92K, what went wrong?
With a decision on interest rates imminent the Firstrung team thought it may be appropriate to take our readers back to the the year 2001 when interest rates were last at 5% although in the corresponsing month, November 2001, rates had actually fallen to 4%.
Posted by converted lurker @ 11:01 AM (456 views)
2 thoughts on “in 2001 average prices were 92K…”
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Haggerston says:
I forget why I couldn’t get on the ladder back then and then I remember: a lot of us potential FTBs lost our jobs after the dotcom bust and found it hard to get started again. When we did, the housing market had already left us behind, not helped in part by Western governments flooding the world with cheap money in the meantime for those who could take advantage of it to counter further economic turmoil.
The house prices of 2000 and 2001 were a fair reflection of what could be afforded back then. Today’s prices reflect what people can afford now.
So tell me, what did go wrong?
Haggerston says:
In my opinion 2000 and 2001 house prices fairly reflected the economic situation back when dotcom jobs were being lost. That wiped out a lot of potential FTBs