House Prices - Where does it end?

The Mad Rapper · 11 Apr 2007 at 13:02

I just read this over on SKY News.

I am absolutely stunned by this - and since when is £100,000 an average salary exactly?

glitch · 11 Apr 2007 at 13:03

A typical £5m home has gained around £100,000 a month - or four times the average wage - every month for the past year.

£100,000 / 4 = £25,000.

So I'd assume that the average wage is £25k.

kingo15 · 11 Apr 2007 at 13:06

i always knew i was below average

lozza23_uk · 11 Apr 2007 at 13:06

not going to stop anytime soon.

off to look at another flat tonight. nightmare.

Glaucus · 11 Apr 2007 at 13:07

It wont end, simple supply and demand

demand far outsrips supply by 100's of thousands a year.

banks aren't refusing mortgages and are finding new and interesting ways to give mortgages to every one and there sons.

so until we start building millions of houses or banks start refusing mortgages the price is just going to go up and up.

even if interest rise rockets I don't think it will have a huge effect. most sensible people will have a fixed rate mortgage so and will have a 2-6 year buffer zone. So we might see a slight dip but that's it.

scorza · 11 Apr 2007 at 13:10

Wealthy Russians and Middle Eastern buyers have been competing for ever-smaller numbers of properties with City workers.

Immigration affects rich people too.

The Mad Rapper · 11 Apr 2007 at 13:10

AcidHell2 said:
It wont end, simple supply and demand

demand far outsrips supply by 100's of thousands a year.

banks aren't refusing mortgages and are finding new and interesting ways to give mortgages to every one and there sons.

so until we start building millions of houses or banks start refusing mortgages the price is just going to go up and up.

even if interest rise rockets I don't think it will have a huge effect. most sensible people will have a fixed rate mortgage so and will have a 2-6 year buffer zone. So we might see a slight dip but that's it.

Why can't we just have a huge crash so prices return to a realistic level and normal people can afford to buy?

Wishful thinking on my part I know, but it's frustrating

Visage · 11 Apr 2007 at 13:11

The Mad Rapper said:
Why can't we just have a huge crash so prices return to a realistic level and normal people can afford to buy?

Wishful thinking on my part I know, but it's frustrating

If there was a crash it wouldnt just affect house prices.....

Glaucus · 11 Apr 2007 at 13:11

The Mad Rapper said:
Why can't we just have a huge crash so prices return to a realistic level and normal people can afford to buy?

Wishful thinking on my part I know, but it's frustrating

I would love it, none of my close family would be affected and I would be able to buy a house.

But I just can't see it happening, I also can't see me being able to afford a house for at least 2 years probably more like 4.

The Mad Rapper · 11 Apr 2007 at 13:14

Visage said:
If there was a crash it wouldnt just affect house prices.....

Depends how big the crash is surely?

wordy · 11 Apr 2007 at 13:15

If you can get this housing crash in within the next couple of weeks then that would be just loverrrly, as I'm halfway through buying one. After that I'm not going to allow it.

Sorry

kaiowas · 11 Apr 2007 at 13:16

A typical £5m home...

I stopped paying any attention at that point as the article is clearly dealing with a rather specialist area of the market.

The Mad Rapper · 11 Apr 2007 at 13:17

AcidHell2 said:
I would love it, none of my close family would be affected and I would be able to buy a house.

But I just can't see it happening, I also can't see me being able to afford a house for at least 2 years probably more like 4.

But that's partly my point. Those who do not already own a house are always going to be playing catch up aren't they? If house prices continue to raise at their current rate then they will become rapidly unaffordable for people on a normal wage.

I'd consider normal to be in the region of £30K.

MookJong · 11 Apr 2007 at 13:17

I can't see a crash coming just a slowdown, it's pretty crazy though the balance of the country now.

Visage · 11 Apr 2007 at 13:18

The Mad Rapper said:
Depends how big the crash is surely?

I believe you used the term 'huge'.

alexakasloth · 11 Apr 2007 at 13:18

Do interest rates have an effect on the housing market? I heard that when they get too high that it can cause a decrease in house prices.

Tommy B · 11 Apr 2007 at 13:19

When Labour get out of power

Tommy B · 11 Apr 2007 at 13:20

$loth said:
Do interest rates have an effect on the housing market? I heard that when they get too high that it can cause a decrease in house prices.

Yes that is correct. That's why the MPC keep putting the base rate up.

VIRII · 11 Apr 2007 at 13:20

Prices will stop rising when people stop being able to pay.
However banks are offering 6x joint salary etc which just fuels the price rises.

scorza · 11 Apr 2007 at 13:20

wordy said:
If you can get this housing crash in within the next couple of weeks then that would be just loverrrly, as I'm halfway through buying one. After that I'm not going to allow it.

Sorry

Same here