Friday, May 11, 2007
What are natural house price levels?
Firstrung: Rate rise will bring market back to 'natural levels'
The Firstrung team are not sure what the spokesman for the NAEA means by "natural levels" for house prices... does he mean pre 2001 when (acknowledged by Lord George, former Bank Of England Governor) interest rates had to be lowered to an artificial low in order to stimulate a consumer boom to stave of the inevitable recession? Base rates are now at 2001 levels, the average price, or 'natural level' of house prices back then, was circa 117K (Land Registry)...
Posted by converted lurker @ 10:47 AM (150 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Rimmer said...
Maybe they dont want to read things that way, 117K sounds about right for a natural level to me.
Going to be very sad for persons who brought in the last 4 to 5 years and i can see all the experts trying desperately to put the blame on someone else, GB will be able to blame someone else up until the next election when obviously hesw on his bike and rightly so.
Interesting times and i feel very sorry for some that will get their fingers burnt paying lots of money for a house worth 2/3 what they paid
2. Scott said...
Natural as in an erection. Goes very big very quickly and just when you think it will endure it's head points down and quickly shrivels up, resulting in total disappointment.