The Future of House Prices

Gary explains how to understand interest rates – and how these influence house prices.

The Trading Game by Gary Stevenson is released on 5 March 2024 in the UK.

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Performed by Gary Stevenson
@garyseconomics

[Peterl]

First mortgages with rates of 8 to 9% and 9% to 10% were common when I bought my first house to live in, which was in Miami in the early 1990s. People will have to come to terms with the fact that we may never get back to 3%. Home prices will have to drop if sellers are forced to sell, and appraisals will drop as a result. I'm very certain that I'm not the only one thinking this.

[jeffkitson]

This guy is like your mate that you only know from raves who also happens to give economic advice.

[willymak]

Man. You have come out of nowhere and basically made all of the other financial youtubers irrelevant. Extremely well done. Great communication. Perfect blend of not dumbing things down and talking to us like we are idiots, but also demystifying concepts and making them understandable to a normal educated adult.

[gardenmind]

Speaking to friends, here in London, they are saying that houses are being sold but there are no mortgages being involved. They are being bought outright. There is a property grab from the super rich and we all need to be aware. Keep going Gary and educate all!

[robinfoster]

I'm a furniture remover, bottom of the market, sole trader. Within 2 weeks, of the Truss/Kwarteng budget everything just stopped! The Country had already been hammered by the cost of energy, markedly reducing business, then that budget was like the final straw! There is loads of money floating around at the top of the market, but the bottom is just flat! 25% of my business used to be moving renters but that all but dried-up with the pandemic - renting is so expensive that they're renting their own truck and doing their own moves. The market is a mess! I recently moved a young couple into a 1 bedroom flat in Bristol. Both were working but they had to pay a years rent in advance, £13, 000! The real kicker was it was the ground floor of an ex-council house! The first floor was another flat and the loft had been converted into another flat! To top all off, the Chairman of Natwest, Sir Howard Davies, thinks that it's not difficult to buy a The people at the top are literally clueless and the very worst people to be in the positions they are in!!!! We are stuffed and I am scared!

[troyfarley]

Watching from the US. For my fellow Americans finding the channel, the message applies to us as well.
Really enjoy the content and perspective from an intelligent person younger than I who is delivering clear explanations of complex situations.

[SashaStowers]

When people say prices have to crash, because the average person cannot afford it, I always reply that the price of Ferraris and yahts should also be coming down soon, because the average person can't afford them. If something is only sold to and between the wealthy, what the average consumer can afford becomes a non-factor.

[Gph]

Spot on Gary. Every time I hear someone say there is no money. I tell them that the wealth of the ultra rich has skyrocketed, and the only way to redress that balance is to close the tax loopholes and properly tax them!!

[alibali]

I used to work in property. Everyone raves about how much their home is worth. I have always called it a false profit as you only win if you sell but don't buy a new home. I am sad that the ridiculous prices mean my children will not be able to afford their own homes for a long time. I am saving to give them a helping hand. Lots of sacrifices for this as I live frugally and don't have many holidays

[TerbrugZondolop]

I just want to say, it is amazing there is a person like yourself that is saying the quiet part out loud . Brave and moral. Watched a lot of your videos. I hope there is a light at the end of the tunnel.

[sheepysheepgoat]

I don't know why but towards the end of the video you brought tears to my eyes because, knowing your story from your interview with Insider, you're using your multi-million dollar knowledge to genuinely educate the middle class. You're truly a God-sent breaking this inequality in knowledge for the betterment of society, ie ordinary families, one video at a time. God bless you❤

[lucensius]

You are a great person for advocating aggressive taxation on the wealthy even though you are rich yourself. I wish more wealthy individuals were like you. Thank you for sharing your knowledge and fighting for those who are less fortunate!

[elainekerslake]

Gary has said..when Sunak changed the 2nd home owner stamp duty levy...an exemption was put in that if you bought more than 6 properties..you didn't pay the extra stamp duty on any of the properties. Jeremy Hunt went out and bought 7 properties. Why would that be designed into the legislation and for whose benefit.

[JaspreetSingh-rqqs]

I just found Gary and I think I learned more form this 25 minutes video than in my whole undergrad in economics

[chetro]

In my area I’ve noticed that some higher end houses did drop substantially in price in the past year. But most of these houses were in the £1m to £2m bracket. My theory is that most of these were owned by less wealthy people who had very large tracker mortgages and couldn’t afford to wait it out.

[thobraa]

The problem begins with the insane influx of cash trying to contain the financial crisis of 2008. Never solved the problem, kicked the can down the road, and here we are again with a much bigger problem.

[carrroad]

Gary is honest and explains economics in a simple yet intelligent manner, unlike the mainstream media.

[bye-]

What happens in 10-15 years time, when renters retire and they can’t afford their rents anymore.
This is a massive ticking timebomb.

[TheBurdenOfHope]

Gary - mate with your book, the way you speak. Your intelligence. Your passion. Your anger. It feels like you with this community is starting something y’know? I’m excited. Big up to you man x

[gumusluk]

Love this guy. It's like E17 have reinvented themselves into financial advice experts 😎