Tuesday, May 08, 2007
House buying falls - market running out of steam
Times Online: House buying falls for first time in six months
House purchases have fallen for the first time in six months it emerged today in a report that signals Britain’s red-hot housing market may finally be running out of steam.
The Bank of England is almost certain to increase interest rates to 5.5 per cent this Thursday in a bid to bring inflation and house price growth under control.
Posted by stew @ 12:46 PM (173 views) Add Comment
8 Comments
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1. Surfgatinho said...
CML to the MPC: 'bleat, bleat, please don't put up IRs'!
2. dohousescrashinthewoods said...
"inflation and house price growth" - that may be true, but it misrepresents the bank's remit to those who don't know.
I ovorheard someone saying that the bank are "raising rates to control the housing market". Ouch, not a good misperception. What happens when prices start falling but the bank is still raising rates to control inflation and protect the pound?
3. doomwatch said...
Wow, another last minute plea article hoping the MPC take note. Yawn, it really is becoming a joke now.
4. Woodyman said...
To save the financial analysts at the various banks having to write their own articles for Fridays papers, simply cut and paste the below....after all you say the same thing every month...
"We don't think it was the right decision by the MPC and we believe some owners won't be able to find the money. Ultimately this has the potential to seriously damage the the housing market. However, we think people will be able to absorb the rise, and the housing market won't be adversly affected because it is still very strong."
5. speculatorone said...
Houses are still selling like hot cakes in my neck of the woods?
Sales have surged recently, I don't understanding it anymore, I feel sorry for all those when it goes wrong, if it goes wrong that is............
6. uncle tom said...
We always get a few pieces like this when rates are on course to rise..
The question this week is will it be a quarter - or a half?
The MPC is a much more skittish bunch now than was the case a year back - so anything is possible - even no change
Personally, I think a quarter point rise is much the most likely outcome, with a further rise in June or July. It would not surprise me if they follow the Fed's example, and make several successive quarter point hikes.
If our Merv is serious about taming money supply growth, he'll probably need to head towards 7% and beyond...
7. paul said...
I agree UT, this rise is an easy one to call.
The very fact that this situation has taken the MPC by complete surprise should be a big worry - it smacks of being out of control, and ad-hoc firefighting.
Still, they have performance benchmarks which they have to keep to.
Oh, hang on ...
8. Down Wave said...
This types of propoganda is always published just before Mervin King and his doves have their monthly chinwag at the Bank of England. Presumable, the authors think that somehow King and his Zip head commitee will read them, then draw in their breath and reduce rates. The Bank of England has been treating interest rates as if it was their favourite grandchild. Too late now, Old Moor's Almanack says that July is the month of the property downturn. Mervin King will only blame Starlin Brown and his treasury Goolags for the problem.