Is the UK property market a form of mass hallucination?

Question

Boom and bust aside, where does its intrinsic value come from?

Answer 1

The basis of all value / pricing is always supply & demand ..

Right now the people with properties they are forced to sell or properties that have been repossessed (supply) outnumbers the people who wish to buy (demand) .. so the price falls to the point where the two are in balance again ..

Plainly it takes time for prices to move .. however (as we all know) prices always drop faster than they go up (sellers are fast to drop their asking price ... and buyers are always reluctant to increase their offer)



Quote "Buy Land - they ain't making any more of it" ...

That's what you are buying when you buy a house .. land that happens to have something sitting on it .. in the long run, you can't loose (long run = 25 years)