Comment on Average price of a home falls by £14,000 in a year
merridew@feddit.uk 1 year ago
Although for context, as of June this year
UK average house prices have increased by 24.2% (£55,880) since the start of the COVID-19 pandemic.
But that's nominal prices. Inflation has been severe since the COVID-19 pandemic started. Can't disregard that.
https://www.in2013dollars.com/uk/inflation/2020?amount=100
£100 in 2020 is equivalent in purchasing power to about £125.60 today, an increase of £25.60 over 3 years. The pound had an average inflation rate of 7.89% per year between 2020 and today, producing a cumulative price increase of 25.60%.
That's a decrease in real terms.
Average wages haven’t gone up by 25% since 2020, and I doubt people have been getting 25% returns on cash held over that period.
Housing affordability is lower than at any time pre-2020.
That may be true, but affordability is a different matter from whether house prices are rising.
dojan@lemmy.world 1 year ago
So they still haven’t fallen enough.
Another case of you’ll own nothing and be happy. Kids these days wanting to own a home and feel secure? Ungrateful spoiled brats.
Aux@lemmy.world 1 year ago
You should keep in mind that decent homes are not in the market right now. What is being sold is mostly just dilapidated crap. This creates an illusion that housing prices are going down, but they’re not. We will only be able to draw any conclusions once mortgage rates become more affordable. There’s a huge possibility that if tomorrow rates will drop to 2021 levels then we will see that house prices went up and it will be a huge spike.