vinyl Posted January 18, 2011 Share Posted January 18, 2011 Since the Cons got in house prices FELL in the last 6 months of the year. Just what are they good at! Nothing comes to a halt immediately. I seem to think the fall started when Brown was PM. If it does bottom out in the next few months it will be just another indication that things are starting to get better. Link to comment Share on other sites More sharing options...
Dress4Less Posted January 18, 2011 Share Posted January 18, 2011 The only thing that can drive house prices up this year is if people decide to hang onto their properties rather than sell and cause a shortage in the market. Link to comment Share on other sites More sharing options...
Obelix Posted January 18, 2011 Share Posted January 18, 2011 People who become unemployed don't tend to move though, so supply drops. This is what happened and is still the case for the most recent recession and I cant see how anything will change. All other predictions I have seen have shown a price fall for 2011. Demand exceeds supply - especially if people are not selling cheaper houses that are in demand most. The situation is that even though there is a recession there are more people chasing houses then house prices are going to be sustained. Link to comment Share on other sites More sharing options...
Berberis Posted January 18, 2011 Share Posted January 18, 2011 The only thing that can drive house prices up this year is if people decide to hang onto their properties rather than sell and cause a shortage in the market. House prices go up when there is a high volume of sales. If people hang on to their property then sales will slow and prices will fall. That is how the market works (in a very basis sense). Link to comment Share on other sites More sharing options...
wednesday1 Posted January 18, 2011 Share Posted January 18, 2011 Nothing comes to a halt immediately. I seem to think the fall started when Brown was PM. If it does bottom out in the next few months it will be just another indication that things are starting to get better. House prices rise most under Labour: Between 1979 and 1997 house prices rose by 146% But prices rose 230% between 1997 and 2009 with Labour at the helm(Source: Nationwide). Link to comment Share on other sites More sharing options...
mogwai84 Posted January 18, 2011 Share Posted January 18, 2011 House prices go up when there is a high volume of sales. If people hang on to their property then sales will slow and prices will fall. That is how the market works (in a very basis sense). no it's not. there are two sides to the market, demand and supply. House prices go up if there is higher demand and/or lower supply. The problem is that demand and supply changes quickly and simultaneously, so predicting what will happen is hard. If people hang onto their homes it could create a shortage of supply and prices may rise. However if prices rise then more people may put their houses on the market and prices may stabilise again. Personally, I think both supply and demand will stay fairly steady and prices won't change greatly in 2011, and the rental market will continue to increase. If there are increases in the interest rate, increases in unemployment and no easing in the credit market then it will continue to disuade FTB's and people from moving so perhaps demand will fall a little. I see little reason why prices will increase this year. Link to comment Share on other sites More sharing options...
altus Posted January 18, 2011 Share Posted January 18, 2011 House prices rise most under Labour: Between 1979 and 1997 house prices rose by 146% But prices rose 230% between 1997 and 2009 with Labour at the helm(Source: Nationwide). Hyper inflation in the housing market is not such a good thing - ask anyone trying to buy their first house. Link to comment Share on other sites More sharing options...
wednesday1 Posted January 18, 2011 Share Posted January 18, 2011 Hyper inflation in the housing market is not such a good thing - ask anyone trying to buy their first house. I'm not saying that it is, vinyl was trying to link Labour to falling house prices. Link to comment Share on other sites More sharing options...
taxman Posted January 18, 2011 Share Posted January 18, 2011 I've never understood the glee in certain sections of society at spiraling housing costs. So what if you can sell your house at a tidy profit, the next one you buy will surely be more expensive than it would have been, so where is the benefit? Link to comment Share on other sites More sharing options...
fake Posted January 18, 2011 Share Posted January 18, 2011 The only thing that can drive house prices up this year is if people decide to hang onto their properties rather than sell and cause a shortage in the market. And where will the ones selling then live? Unless you have more than 2 homes there is no point. taxman also make a valid point. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.