Thursday, May 10, 2007

Will 'high noon' and a rate increase of 0.25% halt this rampant market?

Firstrung: House prices up 1.1% in April 10.9% annually - Halifax

Commenting, Martin Ellis, chief economist, said: "House prices increased by 1.1% in April; the smallest monthly increase so far this year and the second lowest since July 2006. There is accumulating evidence of a slight easing of conditions in the housing market with further signs of moderation in both demand and activity in the past month.

Posted by converted lurker @ 10:08 AM (166 views) Add Comment

5 Comments

1. paul said...

The mounting discontent over house prices will mean that the paltry 0.25% increase will be viewed as a "weak response" and "complacent thinking" to the current house price-led inflation.

Anything less than 0.5% and there will be many more papers questioning the MPC's competence in the coming weeks.

Thursday, May 10, 2007 10:24AM Report Comment
 

2. sold 2 rent 1 said...

This is the winner's curse phase.
I am still sticking to the LSR forecast of 15% for the whole year.
0.25% may hurt the overstretched but it won't stop the BTL crowd, city high flyers, and rich foreigners from buying.

Thursday, May 10, 2007 10:37AM Report Comment
 

3. Woodyman said...

So with the average house hovvering near the 200k mark, Martin Ellis thinks it is a bad thing that prices went up by roughly £2000? In a month? He doesn't in any way see that as a bad thing in terms of runaway inflation? Sees that sustainable does he?

If I employed him I think I would be initiating a new round of redundancies, his name being top of the list.

Thursday, May 10, 2007 10:53AM Report Comment
 

4. dohousescrashinthewoods said...

FT's take:
http://www.ft.com/cms/s/4998982e-fe4e-11db-bdc7-000b5df10621.html

Thursday, May 10, 2007 12:13PM Report Comment
 

5. paul said...

http://www.ft.com/cms/s/4998982e-fe4e-11db-bdc7-000b5df10621.html

Thursday, May 10, 2007 12:43PM Report Comment
 

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