SupraSteve   10 #289 Posted December 23, 2008 So would you like your wages to go to what was "normal" in the 1990's. Money isnt worth what it was in the 90's. We have moved on a couple of decades since then. Phylis, you are correct; wages have increased. They certainly haven't increased 300% though, like house prices did.  You may have missed it, but I pointed out that affordability (genuine meaning not the banks' foolish manipulation) needs to be restored, for long-term stability to be brought back into the housing market. That time after time proven affordability is when the average house price is in the region 3.5~4.5 x the average salary.  If wages had gone up 300% along with the house prices, we wouldn't be in this situtaion, but they haven't so we are. If everone had their wages doubled overnight, no-one would be any richer; the 'increase' would simply be eaten up by inflation, you cannot create wealth like you suggest. Wage increases don't mean anything in themselves, it's all relative.   P.S. For the record, we haven't moved "a couple of decades" since the 90sm it's only been the one. Share this post Link to post Share on other sites Share this content via...
SupraSteve   10 #290 Posted December 23, 2008 unfortunatly your one of those saying "the price will fall next month ......" which as you now know is wrong. Whereas just 2 months ago you were TELLING people to get on the housing market, and that the market was at "the point of change" but only you could see it...  I think this is my favorite post of yours: Dimitri - I`ve bought, lived in and sold 7 family houses in the last 12 years, this isnt the hardest one I`ve had to sell and it certainly isnt the easiest but each one of them has been a gamble - thats all property ever is and anyone who tells you he KNOWS whats happening is just wrong. i`m just telling you - from all the times I`ve sold in a bad housing market before were now were at the stage where things change back, no one ever realises its changed until it has. (That was 10 weeks ago.)  I understand that not finding a sale, despite being utterly convinced you're priced correctly is somewhat frustrating, but please don't make out you're whiter than white and haven't dished out [bad!] advice. And dropping to the levels of being so petty about the definition of "know" is just plain silly; I'm sure you're above that.  This isn't a war guys. Share this post Link to post Share on other sites Share this content via...
Phylis   10 #291 Posted December 23, 2008 Phylis, you are correct; wages have increased. They certainly haven't increased 300% though, like house prices did. You may have missed it, but I pointed out that affordability (genuine meaning not the banks' foolish manipulation) needs to be restored, for long-term stability to be brought back into the housing market. That time after time proven affordability is when the average house price is in the region 3.5~4.5 x the average salary.  If wages had gone up 300% along with the house prices, we wouldn't be in this situtaion, but they haven't so we are. If everone had their wages doubled overnight, no-one would be any richer; the 'increase' would simply be eaten up by inflation, you cannot create wealth like you suggest. Wage increases don't mean anything in themselves, it's all relative.   P.S. For the record, we haven't moved "a couple of decades" since the 90sm it's only been the one.  It does depend where you draw the line, 1990 to 2008 is damn near to a couple of decades. Share this post Link to post Share on other sites Share this content via...
SupraSteve   10 #292 Posted December 23, 2008 It does depend where you draw the line, 1990 to 2008 is damn near to a couple of decades. I shall conceed that, you've got me there Phylis. Share this post Link to post Share on other sites Share this content via...
saxondale   10 #293 Posted December 23, 2008 And dropping to the levels of being so petty about the definition of "know" is just plain silly; I'm sure you're above that. This isn't a war guys.   only took someone 10 weeks to spot the irony ........ never mind .............. but that is where I came in LOL - no one can know.   I just post the opposite to Dimitri out of habit now. Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #294 Posted December 23, 2008 and where have I denied my price needed to be reduced or indeed that I refused to reduce it?  however   unfortunatly your one of those saying "the price will fall next month ......" which as you now know is wrong.  You have stated several times that you will not reduce it anymore. You stated it early on in the thread and then apparently changed your mind, but have since said you'll reduce it no more. The price of housing will fall next month, how can you say I'm wrong? The price of your house might not, but it's value will. Share this post Link to post Share on other sites Share this content via...
saxondale   10 #295 Posted December 23, 2008 The price of housing will fall next month, how can you say I'm wrong? The price of your house might not, but it's value will.    no, no, no - you can`t say that because you dont know the price of my house this month.  neither will the value change, we`ve already shown so many times everything has its floor. Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #296 Posted December 24, 2008 That's why I said value. Do you find it difficult to distinguish between the two?  If housing has a floor value, then it's a long way below where it is now, somewhere close to zero. It's natural value is an average of somewhere around 3 - 4 times the average salary, it's still some way above that. Share this post Link to post Share on other sites Share this content via...
saxondale   10 #297 Posted December 24, 2008 That's why I said value. Do you find it difficult to distinguish between the two? If housing has a floor value, then it's a long way below where it is now, somewhere close to zero. It's natural value is an average of somewhere around 3 - 4 times the average salary, it's still some way above that.    its natural value HISTORICALLY may have bee somewhere around 3-4 times but as you yourself keep saying " things have/are/need" to be changing, that can just as easilly mean that you can no longer move to the same area as your parents did ......... thats your problem not mine - the price stays as it was. Share this post Link to post Share on other sites Share this content via...
SupraSteve   10 #298 Posted December 24, 2008 Never say never saxondale. I'm sure you have a price below which you would lose money on the property and don't want to go there at any cost, but if the market dictates that houses will become cheaper next year, you will do yourself no favours by ignoring potential options. There were plenty of people who "wouldn't" sell the last time we had a house price crash, and instead they ended up deeper into negative equity and in more financial difficulty when they eventually - for whatever reason - had to sell.  I'm not saying you're in this postition, clearly it'll come down to personal circumstance, but never say never mate. Share this post Link to post Share on other sites Share this content via...
SupraSteve   10 #299 Posted December 24, 2008 Look at your probable 'worst case' - house prices fall 50% from their peak, so your £275k (IIRC) house ends up being worth £138k. But the more expensive house you probably wanted to buy has also fallen 50%, so lets say it went from £350k to £175k. You 'only' need to find 175-138 = £37k to buy it now, not the £75k you'd have needed a year ago.  £37k is still a lot of money; people have forgotten that, but it's a hell of a lot less than £75k! Things clearly got out of hand recently; 'the norm' is being restored.  The only people who are worse off with lower house prices are those who; - own several properties (i.e. they have a place to live and the rest are effectively investments) - bought at the peak and HAVE to sell at a loss  At the last reckoning that describes/will describe less than 20% of the nation; so despite what the media might tell you, the vast, vast majority of the UK is better off with falling and cheaper prices; including the majority of homeowners.  If you don't fall into those above categories, stop flapping. Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #300 Posted December 24, 2008 its natural value HISTORICALLY may have bee somewhere around 3-4 times but as you yourself keep saying " things have/are/need" to be changing, that can just as easilly mean that you can no longer move to the same area as your parents did ......... thats your problem not mine - the price stays as it was.  The price stays as it is, you stay where you are. Some of your neighbours will move for some reason, and they will have to price the house at it's value instead of 'what they'd like it to be worth'. It's not that things need to be changing. Things are changing, mortgage lending has changed and is now more risk adverse, multiples are back to historic levels, deposits need to be larger. Consequently demand is lower and the value of housing is falling. I don't have a problem, this isn't about me, you have a problem (a house you can't sell), but it's not even about you, it's about the larger picture, which you are very keen to ignore. Share this post Link to post Share on other sites Share this content via...