Tuesday, Dec 15, 2009
Still plenty of bulls out there!
The Times: House prices continue rise, defying expectations
The title says it all really so I'm not going to bother with detailed analysis. The BBC has a similair report based upon RICS recent proclamations: http://news.bbc.co.uk/1/hi/business/8412399.stm. So is this a logical way to protect your wealth by securing hard assets or just another sign of the UK's unquestioning faith in property?
Posted by quiet guy @ 02:48 AM (1819 views) Add Comment
14 Comments
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1. Lost Password said...
More garbage from Rebecca O'Connor. I don't know why Murdoch continues to employ her. There must come a point where even he realises that saturation property ramping articles discredit his rag.
2. will said...
So we remain in a housing bubble.
If property owners are un-willing to give up their hard earned cash then the just how are they going to realise their profits?
3. paul said...
But this is property uber-bull Becca.
She's always spouting this claptrap.
The UK does not have unquestioning faith in property either - in fact it has quite the opposite which is why the media and official bodies like the Bank of England have to constantly make press releases trying to reflate the deflating property bubble.
By the way, which BoE policy objective does such a press release meet exactly? As far as I can see, white lies like those actually works against both price stability and low inflation.
4. quiet guy said...
@paul
Good comment but I have to disagree in one respect.
"The UK does not have unquestioning faith in property"
I honestly think that the average joe still considers owning property a necessity and it will take a huge jolt to change that perception.
5. a saver said...
If HPI is really back underway, rather than some kind of distortion of the stats, the government should do something to discourage it.
The more HPI, the more people stand to lose if the market finally gets back to fair value.
6. Government Planner said...
This situation will likely persist while homeowners hold low interest rate mortgage deals, which wouldn't be replicated if they bought a new home. Homeowners thus can't afford to move home: pent-up supply. Eventually these deals will expire, supply will rise, and prices will fall.
7. taffee said...
unemployment up,wages falling,tightening of money supply....worst recession since 1930's....house prices up?
makes no sense
8. mrflibble said...
People are bored with the recession, we've been at it now for two years, the housing bottom was called months ago, the recovery is a mere six months away (for the seventeenth time). Obviously it is now time to buy, never been a better time, prices near peak, base rate at a 300 year low, what could possibly go wrong?
9. taffee said...
most bubbles take years to sort out
For instance gold and oil bubbled in 1980 and then fell for TWENTY YEARS before recovering
The stock crash in 1929-1932 took 26 years to get back to peak
But don't worry 2 years and a 10% correction will be fine for the UK
10. greenshootsandleaves said...
a saver@4
You are right to question whether HPI is back. We are repeatedly told that the average 'selling' price (have to use inverted commas because of the industry's annoyingly loose definition of the term, but never mind!) is up. We're also told, but more discreetly, that the market is thin and, even less audibly, that asking prices keep coming down. Those are two very strange reactions on the part of would-be vendors!!! You'd expect them to want to take full advantage of the current market conditions. Now, I know this may sound outlandish but could it be that the people who are currently buying tend to be the sort who do not need a mortgage and, by the same token, are interested mainly in the more expensive properties?
Come to think of it, would anyone ever claim that the motor industry's problems are over simply because sales of luxury cars happen to be slightly up?
11. smugdog said...
Look into my eyes, look into my eyes, the eyes, the eyes, not around the eyes, don't look around my eyes, look into my eyes, you're under. ...
12. fallingbuzzard said...
Its hyperinflation...lol.
13. timmy t said...
Smugdog - you should meet up with Crunchy for a chat... It would be like a scene from One Flew Over the Cuckoo's Nest!
14. smugdog said...
Timmsy, it's all an illusion. Stupid Street cannot see that their pile of ever decaying bricks is not actually worth what they think it is.
The Government is but a skilful Conjurer displaying moments of master trickery.
But hey, take part, as long as you realise it’s just a con that could collapse at any moment.
3-2-1, you’re back in the room!