house prices?

Question

can anyone tell me what has caused house prices to be so high and also when will they come down?

Answer 1

You will hear a lot of such thing like,interest rates , a bad stock market so people are dumping in to investing it in houses making a surge of investors,supply and demand, Low mortgage rates stimulate homes sales and the new excuse is value of money or a weak dollar.

bottom line many do not know why the prices have increased so much and this is a big problem. When there are larger profits you need to know why since this may be a sign of fraud. If you look at every crash suck as Enron,worldcom,S-andL each had record profits.

Is there fraud in the housing market?? Yes there is and Big time and this is why there will be a big crash.
http://www.breakingbubble.com/index.htm

Answer 2

(1) Estate Agents overpricing properties to gain more commission.
(2) Greedy sellers going along with it to get more than the house is worth because the house they want has also been overpriced by an estate agent.
(3) When the pole tax was introduced it was estate agents who decided what band your property would come under. They were employed by the council and what they did was bulk grade whole streets at a time. They made a fortune from this. No regard was taken for individual properties.
Who are the main bunch of people in this country that do not complain about the rise in house prices? Estate agents. Do you ever hear how much they make every year? No because they keep a very tight lid on their incomes. They don't want the man in the street knowing that, do they?

Answer 3

When interest rates became low then people found out that they could afford more mortgage for their money. This caused more people to want to buy houses thus demand outstripped supply.

As rates are still low, this is still happening as house prices are still rising.

Greedy Estate Agents are putting houses on their books at top dollar.

Banks and Building Societies (and other mortgage providers) are bending over backwards to assist people to buy houses with inflated income multiples.

Until the money lenders stop helping people come what then houses will continue to sell at ever increasing prices.

Prices will start to fall when the Bank of England puts up rates to such a level that people won't be able to afford higher payments. This will stop the banks from being able to help and force the Estate agents to make prices reasonable again.

In short, it won't be for a long time yet. Watch Property prices in London and the South East. When it happens there, it will happen in the rest of the country in the following 12 to 24 months.

Answer 4

because the stock market has been so **** for the last few years anyone with any spare cash to invest has been investing it in houses because throughout history it has always given a healthy return, this meant that demand outstripped supply and pushed the house prices up dramatically. Unfortunately the prices will not come back down because demand is always slightly in excess of supply (due to people needing somewhere to live and not wanting to pay extortionate rental prices).

if consumers actually stuck to their guns prices would definately come down like they did approx 12 months ago but the problem is people just accept the high prices and continue buying anyway.

when the prices began to slump about a year ago the market simply revived itself and continued to grow at the level from which it left off !

good luck.

Answer 5

Several factors influence house prices, basically its supply and demand. The trend is always up but we have seen a few collapses on the way. The market has seen a surge of investors
on the buy to rent schemes and pension 'A day' when property was included in pension portfolios. The mortgage lending in the UK is at its highest and I expect the 40 year mortgage will come as the financial providers look for ways to fuel the fire.

Answer 6

It is not that house prices are high, it is because the currency ( i'.e,the pound or whatever) is losing value al the time.

They wil NEVER come down. I know a couple who decided in 1993 to rent a flat, and just wait for the prices to come down. They're still waiting.

Answer 7

it particularly is going to be based upon the genuine fee of a assets no longer the seen fee of a assets that's on the utmost quantity the valuables brokers can get to comprise their expenditures. abode cost hikes over the final 13- 14 years have been intense in a great type of things. some as much as 500% that's previous the pail. It does not advise that the valuables is definitely worth that its in basic terms that the valuers have falsified what the fee is of a assets to their very own very own benefit. regrettably whilst costs drop it leaves load of folk with adverse fairness whilst the fee of the valuables is worth below the very own loan on it.

Answer 8

Supply and demand. Low mortgage rates stimulate homes sales.
That's it in a nutshell

Answer 9

No idea, but some people who do are here (BBC article)

Answer 10

the value of money is the cause.........Email president Bush....he knows everything!