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