No way there will be a crash just before an election

Mindful Money: Shaun Richards: If UK house prices are peaking then what happens next?

... I note that we have passed the pre credit crunch peak for house prices at least according to the Nationwide. But real wages are of the order of 10% lower than they were then and nominal wages are only 8% higher than they were six years ago. If we project that rate of wage growth going forwards then we have a problem for future house prices do we not? Yet we know that UK governments are extraordinarily resistant to letting them fall for any sustained period. So what rabbit will the authorities pull out of their hat next?

Posted by quiet guy @ 11:35 PM 0 Comments

Nice chart showing artificially high demand and change in demand (%mom)

Hometrack: Survey reveals house price plateau on weaker demand

Proof that the shortage of houses for sale is cause by speculators rather than a physical housing shortage. Demand for housing has increased by 23% in the eight months to August, on a par with growth over 2013. However, compared to 2013, when demand continued to grow month on month over the year, there has been a clear slowdown in the latest three months of 2014. Leading London and the South East are registering an increase in the time on the market which is most marked in London. This forward indicator is showing that the market is about to go into full retard.

Posted by khards @ 09:11 AM 0 Comments

Here we go again

Reuters: Foxtons warning on slowdown overshadows special dividend

If London up 26% in a year isn't bubble, please tell me what a bubble looks like. As far as I'm concerned it's the new Nasdaq. Look out below.

Posted by sneaker @ 08:45 AM 0 Comments

Thursday, Aug 28, 2014

The Housing Echo-Bubble Is Popping

Zerohedge: And this time they can;t stop it!

There is nothing remotely "normal" about the echo-bubble's rise, and we can anticipate that its deflation will be equally abnormal. Conventional wisdom on the resurgence of the housing markets takes one of two paths: 1. Housing is not in a bubble, it is merely returning to "normal" 2. Housing is bubbly in some markets, but prices will continue to rise Here's an alternative view: housing is in an echo-bubble that's popping. Courtesy of the excellent Market Daily Briefing, here are some charts that make the case that the housing echo-bubble was just another speculative asset bubble that's popping, like every other speculative bubble in recorded history.

Posted by khards @ 05:23 PM 1 Comments

Ever wondered where all that chinese money is going apart from london

Cnn: U.S. runs out of investor visas as Chinese overwhelm program

The United States has exhausted its annual supply of EB-5 immigrant investor visas for the first time in the program's history following a surge of applications from Chinese nationals.

Posted by mark @ 02:11 PM 2 Comments

Cameron: 'The plan is working'

Sky: Parents 'Cut Back On Food To Pay For Homes'

More than one in 10 parents admit skipping meals to save money and avoid risking losing their homes, a survey has found. Three million working parents in England are being forced to cut back on food so they can afford to pay for their homes. A YouGov poll of working families has found that rising housing costs mean more and more of our wages are needed to keep a roof over our heads. The problem has got so bad that more than one in 10 parents - over 750,000 people - admit to skipping meals rather than risk losing their home. Recent figures from the government's English Housing Survey show households are spending 28% of their weekly income on housing costs alone - and that rises to 40% for private renters. -- Short - Tesco --

Posted by khards @ 07:49 AM 7 Comments

Tuesday, Aug 26, 2014

This is more like it!

Global Property Guide: UK home prices likely to fall 30% over four years

"The message is clear. Houses are now so over-valued that a prolonged period of falling prices is on the cards," says Roger Bootle, managing director of Capital Economics.

Posted by novice pete @ 10:10 AM 13 Comments

Monday, Aug 25, 2014

Investors continue to make life tough for normal homebuyers

Direct House Buyer: Property Investors Make it Tough for Normal Homebuyers

Buy-to-Let has always been one the UK’s property market success stories but at a meeting of the Treasury select committee on the 15th July, MP’s expressed their concern that Buy-to-Let is becoming part of the problem.

Posted by david jones @ 06:39 PM 1 Comments

Be afraid...

Telegraph: Half of homeowners fear interest rate rise

More than half of British home owners with a mortgage are concerned about the impact on their finances of a rise in interest rates and expect to pay an extra £590 a year in repayments.

Posted by nocibomber @ 09:48 AM 16 Comments

But I'm sure it will be OK as average earnings will be £500,000 pa

Daily Mail: Child born today will pay £3.4million for their first home if house prices continue to increase at their current rate of 8.6% a year

Inevitable conclusion (apparently) is 8.4% pa growth forever.......

Posted by pokercola @ 07:59 AM 6 Comments

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