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House prices set to soar by 16% -- GOOD NEWS ??


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2 things are certani,we die and property prices rise over a long period.

 

This is the a fallacy (not the bit about dying). If House prices continually went up in real terms , they would eventually become unaffordable to everyone, which is obviously not possible.

 

I read some extensive research a guy at Trinity College Dublin had done. He accessed house price records going back centuries in several European countries (in Holland there are records gfoing back to the 17th century). The upshot was that there are long term and short term cycles, but house prices always go back into line with the economic reality of things like GDP and average wages.

 

The longer and higher they climb, the longer they fall and stagnate. We have been through a period of unprecedented increases and speculation on the housing stock, so anyone expecting them to start climbing again in the near or even distant futrure (especially in the current economic climate) has fallen prey to wishful thinking.

 

On the other hand, for all those many people who merely want an affordable place to live - as opposed to trying to make money out of the housing stock - this is good news.

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I am finding it hard to sell my house at present, how much more difficult would it be if prices were to rise by 16 percent. Unless wages were to rise also, it's pointless. Then inflation would increase, no one would be any better off.

 

Regards

 

Angel.

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Fantastic news, todays average house price is £175,000 (see the link)

 

http://www.express.co.uk/posts/view/249854/House-prices-to-soar-by-16-

 

EVEN BETTER NEWS - the end of boom and bust is around the corner, and by 2015, the average house price will rise to £205,000....YIPEEE

 

This means you will need a salary of only just under £59,000 a year to be able to purchase a home, and if you are working 35 hours a week

 

Or to be earning £32 an hour for 35 hours a week.

 

Well thats fantastic news, the end of boom and bust is nigh, the house prices are about to shoot up and we are all going to be rich

The real truth is that house prices need to, and probably will drop 16%!
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Your children are out of work, how can they buy your homes?

 

Your children and your homes are worthless.

 

And half of you haven't even had children because you were too busy buying a box held together by mouldy wallpaper.

 

(Or renting it from a bank with an interest only mortgage and beginning to fall behind with the repayments :o)

 

Reap what you sow and all that.

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The real truth is that house prices need to, and probably will drop 16%!

 

There are some areas of the UK that the prices have gone up recently but very few.The reality is most have come down and by big chunks especially in the north East.

Prices will continue to drop too and the only thing stopping them plumitting more is the fact that many sellers CANT reduce their prices because of neg equity.

 

http://www.guardian.co.uk/money/2011/feb/19/house-price-fall-20-per-cent

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For the next generation to have any chance of home ownership, the house prices have to crash back to the level they were 10 years ago.

 

ie,

 

Flat = £25,000

 

Terrace = £35,000

 

Semi = £40,000 - £50,000

 

Detached = £75,000

 

Posh area = £80,000 plus

 

If the price of my home was to crash back, then it would make no difference. I have paid off my mortgage, the only difference I would not have to pay as much for my next home

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But they've gone up,be it in line with wages or inflation they have gone up.

Unless you mean the other one,What,we don't die.

 

You have to measure prices against something, inflation affects everything so an absolute comparison is completely meaningless.

 

Average house price against average salary is a common way of looking at the real change in the cost of housing. It's high at the moment, but coming back down.

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