Monday, Jan 28, 2008
Thank you Times for replacing davidsmith with a Hometrack director. At least this is a honest piece of advertisement
Times: Home economics: house prices and stock market turmoil
"Confidence has certainly been dented, but demand for housing still exists. The move towards more realistic pricing is under way, and may well take a further 12 to 18 months; all-important will be what happens to interest rates and the economy as a whole. Although it provides useful support for prices in the short term, low turnover could have adverse consequences for the market if it persists. For many, the thought of being stuck in their home for the next 20 years could be a call to action. Richard Donnell is director of research at Hometrack" a better, more honest article than any of the garbage by davidsmith "David Smith returns next week" NOOOOOOO!!!!
Posted by confused76 @ 09:02 AM (590 views) Add Comment
5 Comments
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1. Chris Heath said...
Prices in London are always going to be a bet unless they change the planning rules and we build up like New York or out using the green belt, both unpleasant scenarios
http://www.soho-properties.com
2. drewster said...
Quite a downbeat article for a VI. He makes a particularly interesting point which some of us may not have heard before:
"The other reason for the fall in turnover has been the move to a low-inflation environment. Households could afford to move more often in the 1980s, when double-digit inflation was rapidly eroding mortgage debts. The economic success story of the past decade – namely low interest rates and low inflation – has delivered something of a sting in the tail for the housing market. While low interest rates and rising incomes have seen us bid up the cost of housing, many households today simply cannot afford to move home."
3. hpwatcher said...
''A lack of housing for sale''
WHEN ARE WE GOING TO SEE THE END OF THIS MYTH??????
There are loads of houses for Sale......they just aren't at affordable prices!!!!
4. Dave The Box said...
However, we all know that "inflation" as reported by the ONS is not really the same as real inflation that real people are experiancing. It's wage inflation being so low that's the problem.
5. crash bandicoot said...
Drewster, I saw a paper on this subject once (I think it is in the resource section of this site). Rather than making houses more affordable, low interest rates actually make them less affordable in the long term. This assumes of course that you don't pay the same price in each case, rather sign up for the same monthly payment. In the high interest/high inflation regieme the pain of the high interest rate is gone in 3 or 4 years. In the low interest/low inflation regieme the pain lasts for about 17 years - particularly if you are relying on 2 wages to meet the bills.