Thursday, Nov 29, 2007
sudden change of tone by the bbc
bbc: UK house prices see sharp tumble
UK house prices saw their biggest fall in 12 years during November, mortgage lender Nationwide has said.
Posted by seanb303 @ 06:08 AM (717 views) Add Comment
10 Comments
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1. Pmaupoil said...
Yes!!!
2. Davros said...
Despite the protestations of the Nationwide, there's nothing to support the market, let alone turn it around.
Millions are to come of fixed rates in the coming months, interbank rates are at record highs, buy to let is a loss maker and inflation is still over it's target level.
If houseprices are likely to be lower next month than this and the year on year growth is lower than the return from a savings account, who on earth is going to be buying a property?
3. Ntone606 said...
The biggest monthly fall in 12 years, and yet still the VI try to put a positive spin on it. Pathetic.
So the annual rate of HPI is falling month on month, should turn negative in the first half of next year.
4. dohousescrashinthewoods said...
Wow. Someone snuck out from under the "Kelly Control System"
5. Urine Trouble said...
In the words of C Montgomery Burns, "Excellent"
6. tyrellcorporation said...
However Ms Earley said an outright recession in the property market was unlikely.
"With interest rates on the way down and the continued issue of undersupply of housing in the UK market, the underlying fundamentals are perhaps more positive than the recent swings in sentiment might suggest," she said.
WOW! She's confident that inflation isn't about to spoil her VI party! I'm predicting another substantial jump in the inflation data in the coming weeks - all but ending speculation of IR cuts.
7. Rockandhardplace said...
Most emailed story on the BBC website...
8. Noodlebike said...
The Bank of England may cut interest rates sometime soon, but that probably won't have much effect on loan and mortgage rates. Why? Because there are lots of impoverished banks that need to fleece their customers to make back some of their losses.
Effectively the Bank of England has lost control over the cost of borrowing. The housing crash has just started, and the supply and demand does not hold true either because if it did, rents would be as much as mortgages and they are not. This will be far worse than just a housing crash, or even a recession. 1929 springs to mind.
9. little professor said...
10. talking rot said...
I expect the BoE to cut interest rates but this will cause the forth-coming housing downturn to be longer and deeper. As interest rates drop, pressure will bear on £, so the cost of imports will rise higher then they would otherwise be expected to do. The result could be more inflation, and so interest rates would have to rise higher then they would otherwise have to do. So the housing downturn could be expected to be deeper then reasonably expected.
I am starting to think the housing downturn will be decided by how much the link is decoupled between the BoE base rate and Mortgage Lenders' rates.
However, let's remember the market is NOT YET CRASHING. The rate of house price increase has slowed but houses are not yet cheaper then they were a year ago. Don't count your chickens before they hatch.