Non-footy post: If any further proof was needed that...

...Most Estate agents chartered surveyors are not the 'sharpest tools in the box"... The Royal Institute of chartered surveyors are AGAIN saying house prices are "expected to fall". Now given that the markets are suppressed and based largely on confidence, one would expect businesses to either 'big up' the market or at the least 'keep their traps shut'.

All that will now happen is that the market will be depressed further whilst people hold off to see the prices fall. Any other retail business sectors advertise..."Buy now before prices increase" etc.

They are suggesting sellers "get realistic with the prices they are asking". On the other hand it may be a very poor attempt to try and increase their sales by getting homeowners on their books to drop their prices to bargain rates

My own research suggests most house prices in this area have fallen quite considerably in the last three years and, for example, our house current valuation has shown a ise on average in 24 years since we bought it of around 2.75% - 3% pa allowing for home improvements carried out etc. (Hardly a 'bubble')!

What is really needed is for Banks and BSs to offer realistic deals to buyers i.e. not necessarily extremely low interest rates but 5-15% deposits. It is the deposit terms that is stunting the market far more than unrealistic asking prices - excepting London of course which is still "bucking the trend" and IS overpriced.

 

Personally speaking I think house prices need to fall. Would have thought they'd have fallen back more after 2008 but seems some people still seem to think that ever increasing house price inflation (let's call it what it is) is a good thing. Well, it might be to the lenders and to estate agents but it ain't much use to first time buyers and people looking to move up the housing ladder.
Stop allowing builders to give deals to first time buyers as well, that does nothing to get the housing market moving, there should be incentives to first time buyers to buy existing property from people looking to move....that would stimulate the market.

 

So you believe that people who bought a house for say £100k 20 years ago at a mortgage rate of say 9%with much lower salaries than exist now should sell them for about the same amount with no appreciation when interest rates are 3-5% when rents have risen in line with inflation (or above) in the same period? Whilst I agree that 3 or 4 years ago prices were ridiculous a considerable adjustment (outside of London) has happened in most areas.

Our house would have sold for >£130k in 2008 (our next door neighbour got £127500 for his in 2009 in spite of it needing quite a lot of work) and ours is currently valued between £115k-£118k and we have put it on the market at £114k. That is at least £16k (>12%) less than 3 years ago. How much do you want prices to drop?? Buyers are also being unrealistic. Many people cannot afford to drop their prices that much as they are in negative equity if they do so.

 

Like with anything else, it depends which side you are looking from, I have a terraced house and yes, it's at a higher value than I bought 20 years ago - however the problem is this.
Lets say I bought a terrace for £30k and it's now valued at £60k......sounds great....except if the semi I want to move to has gone up by the same percentage from £60k to £120k (and invariably they've gone up even more)....instead of trying to make up a £30k shortfall, I have a £60k shortfall. So house price inflation does not benefit people trying to move up the ladder.
House prices have far outstripped salaries and inflation over the last 25 years or so. Where one could reasonably expect to be able to a find a house for 3x their salary back then they've almost no chance now.

 

"House prices have far outstripped salaries and inflation over the last 25 years or so. Where one could reasonably expect to be able to a find a house for 3x their salary back then they've almost no chance now. "

That is less to do with the house prices and more to do with a) salary freezes and lack of proper jobs over the past few years and b) large deposits required to buy a house

I agree house prices have outstripped salaries but for the above reasons

 

Similar story for me. Ours was valued at £230,000 only five years ago but we decided not to sell at the time. Its now been on the market for two years (it's now been reduced £175,000 from £185,000 and from £190.000) and we can't sell. The estate agent called the other day to suggest we dropped the price again to sell - I politely told them to f*** off.

Oh and on a similar subject thank you so much to the last government for wasting my money on the doomed HIPS. Incompetent tossers.

 

That's the myth that people bought into, that bricks and mortar can miraculously increase in value for no apparent reason aside a possible lack of supply.

 

Err everything increases....wages, food clothes etc. Its called INFLATION!

 

we are supposed to have a house shortage in this country.....why arn't the government making it easier to buy places for everyone....... once people start buying and selling, will that not get the market moving?

We are heading towards the past where rich landlords got all the houses and the poor just had to rent for ever...... dark days for the skint society i feel.

hth