Wednesday, Jun 03, 2009
The house price trend is still down, for the time being
Telegraph: The bottom in UK house prices is no bottom at all
''After a 75pc drop in mortgage approvals, record low transaction volumes and a 22pc fall in average values from their 2007 peak, some indicators suggest a floor has been reached. But the signs aren't yet conclusive. Further lurches downward cannot be ruled out. ''
Posted by hpwatcher @ 05:25 AM (626 views) Add Comment
3 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. Gruppenfuhrer said...
Pathetic. I used to be a newspaper journalist and this just reminds me of the formula needed to create quality journalism: no idea + fool's sense of objectivity x need to establish new line regardless of basis in fact - whatever the sub editor decides to chop out = what the public believes to be true.
I'll say it much more simply: This country has no money at the moment. People with the last savings of grandmother's loot are putting into houses (at a time when people historically like to move anyway) because they can't believe the decline in house prices can go on much longer. Their smiles will fade however because they are in the minority and they have just walked into the bull trap. GDP, down, unemployment, up, interest rates, due to go up, government spending, up. Nationwide and Halifax and all the other banks know this, that's why they want twenty and thirty per cent deposits. They will not lose their own money.
After the last crash house prices only recovered after ten successive quarter rises in GDP. Can anyone see that happening in 2009?
I predict, as i have said before, the recovery will be linked to the olympics. Anyone?
2. japanese uncle said...
''After a 75pc drop in mortgage approvals"
It is because of the fictitious lending capacity ludicrously inflated by multiple layers of leveraging. When the music stopped, they only found one seat rather than four which were believed to exist. More or less this 75% can be directly translated into the eventual size of the HPC.
3. inbreda said...
the recent ramping and green shoots BS in the press is only going to serve to give sellers false hope and unrealistic expectations, which will only make the situation worse. I wonder when they will wake up and smell the roses. Articles like this one at least don't hinder the situation.