Tuesday, Aug 28, 2007
Slow to a standstill ?
Financial Times Online: House prices expected to slow to near standstill
The house price boom of recent years could be set to slow to a near standstill next year even assuming the credit market storm blows over.
Fionnuala Earley, chief economist at Nationwide Building Society, said she expected property values to rise just 2 to 4 per cent in 2008 – “earnings growth or less” – as affordability constraints take hold and expectations for further price rises reduce.
Does anyone know - have house prices ever "stood still" ? From the graphs I have seen they tend to go up and down - but stand still ?????
Posted by onyerhike @ 10:30 AM (298 views) Add Comment
4 Comments
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1. Lives In A Cave said...
They never stand still - hasn't Ms Earley heard of the herd instinct (sorry, no pun intended).
2. paul said...
This is the much lauded soft-landing, and makes the rather unrealistic assumption that no-one acts rationally, and that faced with falling asset values they will sit tight and wait to see how much they are going to lose instead of trying to sell it off to cut their losses.
3. Matt said...
Hands up if you're sick of Fionnuala......I certainly am.
4. Davros said...
You can't get a boom and a flat. You get flats followed by flats. Busts follow booms as the money has to be paid back at some point, hence less money.