Sunday, Jun 22, 2008
A healthy correction is welcome
Independent: Homes and economy drag each other down
"And once prices stopped rising, the reason for much property buying disappeared: there was no prospect of an easy capital gain from trading up, buying second homes, investing in buy-to-let or financing the student homes of one's offspring" but do not expect house prices to start rising again any time soon!
Posted by confused76 @ 08:46 AM (608 views) Add Comment
7 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. quiet guy said...
The last sentence indicates to me that Richard Northedge hasn't learned much from the house price correction.
"The Government will have to do much more than relax stamp duty to revive demand, but at some point housing will look as oversold as it last year looked overheated. It is unlikely to be this side of an election, however."
(I presume that the author meant 'undersold' not 'oversold')
We cannot build a successful economy by speculating on asset prices. It is essential that house prices volativity is dampened and we start earning our living by genuinely productive economic activity if we want to have a healthy economy.
2. str 2007 said...
I agree quiet guy.
Which government will have the courage to tell the sheeple they might have to work for a living ?
and how many articles these days are/could be written by lifting posts from the HPC archive ?
3. techieman said...
A correction is a temporary pullback against a prevailing trend. This is not a correction this is the begginings of a change in trend. The way to tell? When there is a move back higher (at some point there will be ) if that point doesnt result in new highs (prob not) then that move back up will be the correction against the prevailing down trend.
How long will this new trend last? Until everyone thinks it will go on and on.
4. Rental John said...
Well said QG
The one overriding trend during and since the Thatcher era, continued by Major and Blair/Brown is the 'destruction' of the UK manufacturing and export base. Perhaps it is now too late to recover now the so called service and financial sectors are on their knees.
The only glimmer of hope is that with rising oil prices affecting shipping costs, and inflationary pressures hitting the far east - UK manufacturing {what is left} can become more competitive.......if anyone has any money to spend that is!
5. Rental John said...
Well said QG
The one overriding trend during and since the Thatcher era, continued by Major and Blair/Brown is the 'destruction' of the UK manufacturing and export base. Perhaps it is now too late to recover now the so called service and financial sectors are on their knees.
The only glimmer of hope is that with rising oil prices affecting shipping costs, and inflationary pressures hitting the far east - UK manufacturing {what is left} can become more competitive.......if anyone has any money to spend that is!
6. techieman said...
QG - actually he probably means oversold in connection with price. If you use any relative strength indicators yo get overbought and oversold readings.
http://www.tradingday.com/c/tatuto/overboughtoversoldoverload.html
7. quiet guy said...
@techieman
Thanks for correction. I'm no chartist but I think I get the basic idea now.