Monday, May 28, 2007
Tide has turned (but so far only in The Daily Telegraph)
Daily Telegraph (Online): House prices on their way down
I recall the comments on May 13 which 'gonged' the start of the decline in house prices or perhaps it was the empty cheap red wine bottle being dropped? Either way, this article is the first I recell which reports prices ARE declining, as opposed to those which report they MIGHT BE declining. I wonder if we are at a false-cliff, caused by the failed introduction of HIPS, and which will be ignored over the next months? Time will tell but an article worth reading to remove those Monday blues.
Posted by talking rot @ 06:10 AM (347 views) Add Comment
5 Comments
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1. harold said...
Mmmm, guessing the housing market at the moment is a bit like reading the tealeaves. Is the price dip the start of the long-awaited bust, due to HIP confusion, or IR rises? Truth is it's probably a combo of all three. I would be wary however of the media's attempts to over play this. The Telegraph's message is a simple one, and it's not directed towards its readership, but the MPC ahead of next month's meeting.
2. speculatorone said...
There dose seem to be a lot of media attention indicating a HPC. I wonder how much pressure our new PM will be putting on BOE too. How much longer can he use his smoke and mirrors to disguise the truth on debt.
Who was it said he would not allow HPI to get out of control in the first place?
3. Confused76 said...
We can be sure of the start of the crash only when home owners will start being dragged to court for repossessions. Of course I feel sorry for those who will be affected. So we really need to see some drop in the employment numbers before a crash can be called.
4. paul said...
Sometimes, a swallow does a summer make.
5. bufferbear said...
I posted this in the comments section:
The market is unsustainable but continues to defy logic. Economic fundamentals do not support current prices but so far the spin merchants (eg lending institutions, estate agents, government) have done an admirable job in fuelling this boom. Interest rates will continue to rise, inflationary risks are on the upside, debt levels are unprecedented, bankruptcies / insolvencies are on the increase as are repossessions. Unfortunately for many, double digit interest rates are not required to cause a bust as individuals have borrowed obscene amounts. 2007 will be the year that this asset bubble goes 'pop'. The important thing for FTB is to have a substantial deposit as it will be so difficult to borrow large amounts in the future. My advice to the currently priced out generation is SAVE SAVE SAVE. Your time will come. House prices ALWAYS return to trend and I believe the forthcoming correction will make the last one (1989-1995) look like a picnic.