Monday, Dec 22, 2008

MSN aren't afraid of making predictions

MSN UK: Property prices set to fall further in 2009

No good news for the property tycoons here.
Half way through he is talking about a 2/3rd drop.
His eventual conclusion is a mere 20% drop.
The original link to this article is straight from the MSN home page (which is the default for Internet Explorer),
so I would expect quite a few people to see it

Posted by tenyearstogetmymoneyback @ 08:18 AM (492 views) Add Comment

5 Comments

1. paul said...

Afraid of making predictions. Yes, indeed.

The banks are scared that making predictions will make them come true - and so it does. I went to see an EA at the weekend and told them that to be interested in property. I'd have to factor the next years' predicted reductions into the current value.

He replied that "property is cheaper than its ever been".

Which is also a lie.

Monday, December 22, 2008 09:40AM Report Comment
 

2. luckyjim said...

I was just about to post this article - saw it on the MSN home page as you say.

Nothing new but it all helps to influence all those stubborn venders who think their house hasn't been affected.

Monday, December 22, 2008 10:06AM Report Comment
 

3. Mc said...

It's funny how a cold-hearted analysis of the situation leads to a conclusion:

"That would imply an affordability index of 2.0, or a fall in house prices of two thirds from the peak."

But then the human-mind kicks in and instinctive disbelief:

"I can't see that happening."

I wonder what are the facts are behind the latter statement? Why can't it happen?

Monday, December 22, 2008 11:22AM Report Comment
 

4. need-a-crash said...

"It isn't supply and demand. With a wasteland of half-built houses visible in every town, Britain's supposed shortage of homes has been exposed as a myth. It wasn't ever the number of homes, but their affordability that was the problem. Cheaply-financed buy-to-let landlords were able to outbid first-time buyers."

Amazing to see this just rattled off as common wisdom now. Only a short while ago the likes of Money Week and Capital Economics were the only people prepared to say this and they were laughed out of town!

Monday, December 22, 2008 12:06PM Report Comment
 

5. Tenyearstogetmymoneyback said...

Very interesting comment Mc @ 3

So interesting I just dug out some old payslips.
Back in 1995 my basic salary was £22K. Add in a bit of overtime and it was easily £24K.
At the same time the best offer I got for my three bedroom end of terrace in Hampshire
bought for £65K in 1989 was £48K.

So the answer is it could happen. It did happen just thirteen years ago (assuming I was on an
average salary back then).

One good thing about those days was seeing colleague who couldn't have possibly afforded
a flat back in 1989 skipping them altogether and going straight for decent houses.

:- Duncan

Monday, December 22, 2008 07:19PM Report Comment
 

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