Thursday, Oct 16, 2008
That's That Sorted Then
TimesOnline: Housing slump could be over next year, MPs hear
David Miles, chief UK economist at Morgan Stanley, said that if mortgage rates stayed at present levels, an educated guess from sophisticated economic estimates was that house prices would fall by another 5 to 10 per cent and wipe a further £17,000 off the value of an average home before the market bottomed out next year.
However, Professor Miles, who previously has advised Gordon Brown, added that if a recent decline in the cost of mortgage funding continued, price falls could soon end.
Posted by renting2 @ 12:42 PM (645 views) Add Comment
9 Comments
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1. shipbuilder said...
But i've just read there's no (or at least an insignificant) drop in the cost of mortgage funding on Robert Peston's blog and none in sight. So who's right?
2. harold said...
...and Labour might win the next election.
3. nooneo said...
And Crash Gordon is a financial genius....
4. beartil2010 said...
This clown was forecasting continuous increases of prices before the crash, due to demand and lack of supply; then that demand would stop a crash; now he's saying demand will force the market back up.
It's amazing how you can become a professor and still learn nothing. Try understanding some basic money-supply economics, Miles!
5. timmy t said...
Anyone who uses "previously has advised Gordon Brown" as proof that their opinion has merit is on pretty thin ice.
6. Landedgentry said...
Some VIs argued that prices would plateau or level off (and we'd never see a 90's style correction). So using their argument, why don't prices level off after a great big fall and stay there for some tiime?
7. mark said...
don't forget we were stable and able to weather the storm 3 weeks ago, what happened since that statement, thats right unemployed will be lagging your loft...lol, they all talk utter cr&p
8. Fjcruiser said...
For the average house to become affordable again it needs to be at about £120,000 (thats 4 times average salary). As we know prices will, go down lower than this as it always does when a bubble has burst (it overshoot before correcting itself eventually).That represent a drop of at least 40% from the peak valuation at approx £200,000.
GB's talk of lending again at 2007 level, is labour going back to its old roots: communist central planning & propaganda talk.Welcome back to the 70s!!!
9. tinker said...
Here's the thing... hasn't Brown surrounded himself with sychophants telling him what he wants to hear regardless of the facts or current trends.
Who was the other idiot? Oh Prof. "straight line" Nickell.
Brown hears what he wants to hear; won't listen to what he doesn't want to "I can't accept that..." (IMF, Cable, general criticism). >>> can't = won't