Thursday, Mar 12, 2009

Telegraph Scare Mongering Another 55% House Price Fall

The Market Oracle: Telegraph Runs with Improbable UK House Price Crash Forecast of Another 55%

The mainstream press as illustrated by The Telegraph has run with a house price forecast by Numis Securities (NS) that states that UK house prices could fall by a further whopping 55%, that is a rather incredible forecast to make in light of the of 22% fall to date.

Posted by nadeem walayat @ 09:35 AM (320 views) Add Comment

5 Comments

1. Bubble Trouble said...

The forecast is not the incredible at all. It simply assumes that prices will overshoot to about the same degree as they did in the 1989-1997 crash. That is perfectly plausible. Indeed, I would suggest that it is likely to be worse this time.

Thursday, March 12, 2009 03:10PM Report Comment
 

2. This comment has been removed as it was found to be in breach of our Blog Policies.

 

3. Bubble Trouble said...

It is not incredible at all. It seems perfectly reasonable that prices will overshoot by as much as the 1989-1997 crash. Indeed, I would say that this crash is likely to be worse than that crash - so the forecast is actually being very conservative.

Thursday, March 12, 2009 03:13PM Report Comment
 

4. sold 2 rent 1 said...

nadeem,

You haven't factored in $400 oil, so your wrong mate.

Thursday, March 12, 2009 08:22PM Report Comment
 

5. sold 2 rent 1 said...

The coming hyperinflation will be in food and energy and will detroy property prices into the ground

Thursday, March 12, 2009 08:25PM Report Comment
 

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