Sunday, Oct 21, 2007

The tune at the Times has definitely changed. Now prices will stay flat, but do you believe that?

Times: House prices‘to stay flat for years’

Fionnuala Earley, the group economist at Nationwide, said: ““As a result of slower economic growth and the impact of the credit crunch, we now think house-price inflation will be around 0% and there could be falls on an annual basis in some areas. We could then see a few years of flat growth.” Can you believe that? soft landing like a jet plane that has run out of fuel. How about the one million BTLosers running for the exit?

Posted by confused76 @ 05:19 PM (544 views) Add Comment

3 Comments

1. planning4acrash said...

How is flat growth growth at all?! Such words are nonsensical lullabyes from vested interests cooing to their customers. You wait, when the crash comes, it'll be like Northern Rock "nobody could have seen it coming"!

Sunday, October 21, 2007 05:52PM Report Comment
 

2. Icarus said...

The UK graph of house prices over time looks like a mountain chain, not a mountain chain followed by a plateau. It's like we're being told "house prices heading south is something that happens in Other Countries - move along now, there's nothing to see here".

Sunday, October 21, 2007 06:02PM Report Comment
 

3. also sold to rent said...

There is no flat. 0% nominal growth with inflation at 3% is about a 3% loss. My calculator says that over 5 flat years that's about a 14% loss. But as Icarus said, asset prices are rarely flat.

Monday, October 22, 2007 10:01AM Report Comment
 

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