Wednesday, Jul 18, 2007
THE BUBBLE STILL GROWS??FOR HOW MUCH LONGER
DAILY EXPRESS: HOUSE PRICES SOAR BY £380 A WEEK
Prices still do the unstoppable
Posted by bubbles... @ 01:42 PM (182 views) Add Comment
14 Comments
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1. planning4acrash said...
Prices accellerated before the last crash, those houses still being sold are bought by wealthy people who don't realise that the bottom has fallen out of the market, they reach the top of the bottle and realise that the only way is down!
2. Schmalex said...
This article is dated May 15th..... However, I did see that the Express had "House Prices Climb at £50 per Day" as their headline yesterday, so they are obviously still trying to "wring the towel dry"
3. Brit1234 said...
This article is from May 2007 and after the interest rate rises. The market has changed since then and reality is sinking in for most people now. Old and outdated news.
4. confused76 said...
yes and these are March data (the article if from May)
5. samone said...
err, the article is two months old, the data older. since then a lot has happened.
and; for the record and the end of a housing bubble. prices level off and the so called 'cooling' of the market is seen. then prices remain the same but the volume is much, much lower. this is the top of the bubble.
6. Orwell said...
So it does look like IR's of 6.5% by the end of the year then and 8% by this time next. I thought it would stop at 6% and 7.5% respectively.
7. dbnazz1 said...
What a lot of rubbish. The Express has used the same 'increase of 50 pounds per day' before. It seems a big coincidence to me that they think that price increases calculated per day are exactly the same in one period as they are in another period. I prefer the other theory where they just re-use an old headline to try and fill the paper. More dis-information.
8. fahrenheit451 said...
I agree with Orwell, IR's of 6.5% by the end of the year, and don't believe them about interest rate drops next year, its all Estate Agent Marketing.
Oh yes, this article is out of date and sends bad vibes across my "Crystal Ball".
9. Andy said...
Along with Richard Desmonds other business ventures this one also caters for those loosers in need of a little fantasy.
I think he preys and focuses on a particular niche in the population.
10. Marym said...
Had the house valued today for exactly same price as this time last year. Any bubble has by-passed this place (Southend-on-Sea -well maybe no wonder!). Plus EA said that a landlord in a local and truly awful development has just off-loaded 6 flats ie put onto the market, not yet sold.
11. Cstanhope707 said...
This little VI Rag has no credibility anymore. Notice how that annoying POP UP add comes up everytime you go to a new page on their site.
12. george monsoon said...
Ok, the evidence that houseprices are still rising is no longer a foregone conclusion, because as posted yesterday, there is now evidence to the contrary.
I think its healthy that bulls post on this site, but apart from one or two concrete articles, the arguments being posted are largely without substance and are anything but impartial.
I tend to ignore the fringe articles posted on this site (as humorous) and only take notice of concrete evidence that the market is on the change, the state of the economy, interest rates, political statements and policy. Because these will determine my ability to buy a house. What I object to more than anything is downright plugging and deliberate attempts to undermine what is predominantly a very informative site by individuals, who's only intent is to disrupt and upset.
It is in my interest to see a return to affordable house prices. This is not going to happen unless my wage is increased by the same ratio as houseprices have increased over the last 8 years, or prices of houses have to come back down to the long term relative norm, which is about 60% less than current market value.
I do not see my wages increasing by roughly 120% any time soon, so my only hope is that prices fall back. History tells us that a correction always comes about through necessity, rather than by design, however as a race, we are very bad at learning from the past, and always tend to think "things are different this time round"
So... to conclude, I would suggest that any BTL investor out there, who believes that they are helping their cause by posting articles that argue in favour of house price increase and against a fall, are misguided, greedy, malicious and are going to get their just dessert.
:O)
13. chilli said...
What were the infrastructural reasons for HPI again?
Increased demand from immigration.
City money.
Shortage of housing.
Unfortunately the recent strengthening of the pound is going to add incentive to immigration, but make it more difficult to actually enter the country. Although, not that difficult for eastern europeans. I really wonder how they are getting jobs over here, hasn't the unskilled labour market been filled yet?
City money. Yes, this is how that wall of money we print every year will probably reach the market in general. I hate those bastards. It could go on like this forever really. Ultimately the only solution if they don't stop printing the stuff is civil unrest.
Shortage of housing. This is very political. The issue is that the major voting public have a vested interest in keeping house inflation up. At the same time, the MPC doesn't want to cause a crash, as they would get the blame. So what they want is a stagnation of housing prices. Either way, I don't see much incentive for the government to support a viable economy, by popping this bubble intentionally. Regardless of what Gordo says.
It'll keep going up until the house of cards comes crashing down. When it does, they will print even more money to bail everyone out.
Get ready for massive inflation.
14. A Saver said...
I've noticed a lot of fixed price properties (as opposed to offers over £X00000) in Edinburgh just lately. This usually means sellers are struggling.
Anyone else noticing this trend in their area?