Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Monday, January 21, 2013

What makes prices go up?

What makes house prices go up?

Now I'm old enough to remember the last property bust in the early nineties.  Values got ahead of themselves and there was a correction.  However, I also recall that for 2 or 3 years after the initial fall out prices failed to recover despite all the technical indicators pointing to them being cheap.  Technical factors on price and affordability include:

1. Average house price to earnings ratio (specifically first time buyers earnings)
2. Mortgage availability
3. Proportion of income spent on mortgage payments

Even when all these suggest that prices have corrected there is one overriding factor required to propel prices up and that is.....CONFIDENCE.  This is confidence of buyers to spend, confidence of lenders to lend, confidence of surveyors to sign of valuations of residential property.  Until confidence returns which will be a long hard road technical factors remain a interesting irrelevance.

Landlord insurance  - best rates - trusted brokers
Bookmark and Share

No comments: