Monday, 25 April 2011

Just watched Homes Under The Hammer

Seems like we are once again in a North South divide. I have Just seen a two bed terrace house sell for 38 grand and once it was renovated it was worth fifty grand. I know it was in Barnsley and there is a shortage of work but it was close to Sheffield so an easy commute. I have always said house prices are to high and in the current market rental prices are affecting the prices. If housing costs were to reduce people could spend more money ie. be consumers.The trouble is even if people consume most of the goods are imported and we need to produce goods to make jobs. But maybe a cut in the value of house prices would be a start. I just typed house prices overvalued into google and it would appear I am not the only one with such thoughts. I have nothing else to say on the matter but leave it for you to tell me what your thoughts are.

1 comment:

  1. Don, if housing prices were reduced tens of thousands of people would be trapped in minus equity. I was in estate agency in South London in the early 90's property recession and you had couples with two young kids still stuck in studio flat starter homes because they could not sell to cover their mortgage.

    Many went for repossession to escape from impossible situations, even split up copuples still forced to share the same home. Don't wish that back on people.

    The market will ultimately set its own level and area fluctuations will continue. Artificially trying to create price levels, the dream of the left, can never work, except maybe in some socialist utopia like the USSR.

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