Monday, Jan 15, 2007
Balanced HPC article
Every Investor: The house price boom has got to crash
A random link that a colleague sent me, it covers with clarity a few of the angles that will be well-worn to regular visitors on this blog, including earnings vs prices, the bank of mum and dad, BTL figures not adding up, through to inflation. Looks like a balanced article in a sea of fluff.
Posted by dohousescrashinthewoods @ 11:47 AM (143 views) Add Comment
8 Comments
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1. Headmelter said...
Boys could we not pay attention. This is the third time this article has been blogged.
2. bidin'matime said...
In case you havent seen it, here's a link to a heartwarming tale from Nottingham: http://www.housepricecrash.co.uk/forum/index.php?showtopic=40472
Fully cross-referenced with links, it is concrete evidence of what happens to prices when BTL fools stop buying....
3. Chillilizard said...
Let there be more articles like this one. The only criticism I have is that it contains exactly what I want to hear.
4. inbreda said...
Good article.
The bubble that has been created should, IMHO, be thought of as more as something that prevents money being returned to the poor.
The article is right to suggest that inflation is a requirement to stabilise the market, and anyone who holds onto their property through this period of inflation will be rewarded in the long term. But the UK has NEVER been in this much debt before, and the repos and IVAs are testmaent to the fact that even with tiny interest rates it's already falling apart at the seams. A period of inflation would surely cause a depression?
5. Cyril said...
bidin' - I had a look at your heartwarming tale about Nottingham, which was a bit of an eye opener. I had a look at the bbc house prices web page and was quite surprised to find loads of other places where the prices have gone down - some you wouldn't expect such as East Cambridgeshire. It's not just a seasonal effect although the last quarter is probably not the best time to sell. The price falls are highest for flats, which is possibly a bit worrying for BTLs and others with mega-mortgages. What do you think Glorious Sunshine?
6. magnifico said...
Same article appeared on MSN Money yesterday and was posted twice. See some interesting comments posted yesterday.
7. Dohousescrashinthewoods said...
Sorry, my mistake.
Webmaster, any chance of a URL check a-la digg.com?
8. denzil said...
Well all I can say is that I completely concur with the article but the madness continues around my neck of the woods. I found myself driving along the A38 in Somerset this afternoon in an area I have not passed through for sometime and all I saw was "Sold" and "Sale Agreed" signs across the property spectrum. The good lady wife and myself looked at a small-holding around last May. It was truly shite, I mean awful. I commented to the wife that it would never sell and lo and behold today I drove past it and it has sold. It's not on land reg yet so the owner may have taken a hit on the asking price. The place needed knocking down and the land with it only came to 4 acres so it seems like the asking price was £125000 an acre.
There is so little supply in my locality that it actually quite scary, although I still have no doubt that a bubble is a bubble.