Sunday, Mar 23, 2008
House Price Correction Inevitable - Nationwide BS.
Times: Freeze on mortgage lending to hit house prices
Even the banks are saying property is heavily overvalued. The Natiowwide says there will be falls of 10% nationally this year and next - 5% each year. So the truth is probably closer to 20% falls nationally over the same period. In the Southeast and London overvaluation is much higher - house prices are probably 50% overvalued. Surveyors are now adjusting down their valuations, which means many people are having to find huge 'second deposits' in order to re-mortgage when their fixed rate period ends. This is one factor causing house prices to fall. These falls make for a healthier and safer economy.
Posted by bill @ 07:48 AM (299 views) Add Comment
4 Comments
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1. Happy? said...
In the past Fionnuala Earley has accurately predicted the direction of trend but massively underestimated the growth e.g. Nationwide have predicted growth of 5-10% and have been forced to revise that trend upward. Given their record to date I think they've got the direction of travel correct but I suspect this time next year the figure of 5% decline will prove woefully optimistic. Instead I predict the complete collapse of BTL this year - anyone who got into this game post 2001 will find themselves a regular visitor to their local county court as bankruptcy petitions follow re-possesions. To compound the problem FTB will not be able to afford mortgages either.
2. confused76 said...
This is too good!
The market is truly and over this time
3. crash bandicoot said...
So the Nationwide are now predicting falls. Not a a 2% rise like 6 months ago or 0% like 3 months ago. What will their figure be in another 3 months? Still not realistic probably. What's the point in spinning this out anymore if they aren't making the old reckless loans anyway?
4. Fed Up said...
Agree CB. What is significant is that the Nationwide is forecasting a fall at all. The percentage figure is largely irrelevant as Nationwide has now admitted that prices have peaked and only have one way to go ..........