Monday, May 24, 2010
Here's why British house prices will fall
MoneyWeek: Here's why British house prices will fall
Many people are still under the impression that the only way house prices can possibly go is up. But this just isn't the case. Here's why.
Posted by damien @ 03:40 PM (1595 views) Add Comment
8 Comments
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1. titaniccaptain said...
Merryn Somerset Webb.........................sigh.........bloody gorgeous.
But that aside she is 100% correct.....we have heard much about the perfect storm hitting global markets but the real perfect storm is about to hit the housing market......ooooowwwww and I have just sold my house before it happens :-)
Goldy goldy goldy!!!!!!
2. V said...
Incidentaly MoneyWeek keep linking off to posts such as:
http://www.fsponline-recommends.co.uk/page.aspx?u=tprrats&tc=ETPRL507&PromotionID=2147066923&u=49670302&g=278&r=Milo&s=109270&o=107498&l=120171&
Claiming that an IR rate rise will immediately crash the FTSE seems to be a very specific prediction, which would seriously dent their publication's reputation if it turns out to be codswollop!!
The only reason I'm interested is because I've piled a load into an ETF which returns 2x the inverse of the FTSE.... so a proper crash would be lovely!
V
3. mark wadsworth said...
TC, you sold? Well done. Are you now renting?
4. a saver said...
MSW has just bought a house herself -although she did say that it was well below peak price and she may well regret it from a financial point of view.
5. titaniccaptain said...
Yes Wadsworth I sold....will be renting but 4 beds with 2 reception rooms are live rocking horse sh*t
6. clockslinger said...
Is it me or have I read this article before or at least many versions of it....every night for the past five years on HPC with unfortunately little or no accord with the reality I see around me.
7. quiet guy said...
@clockslinger
Something similar passed through my mind as well. I think Merryn's analysis is essentially correct but virtually every property bear called the crash too soon and failed to predict interest rates being cut to near nothing. On the other hand, I suspect that quite a few 'investors' didn't see the proposed new CGT tax coming either.
8. Jayk said...
Give it a rest with these "Moneyweek says house prices are heading for a big fall" posts. Moneyweek has been posting an article a month for three years on this subject. And apart from the distinctly average falls in 2008, they've been wrong wrong wrong. They're always wrong.
House prices are never going back to their historical averages. It's no use carping on about trends, affordability etc because the market has CHANGED. The time of everyone owning their own home is over, so the link between prices and wages is irrelevant. In future, we will be a nation of renters (as we were a long time ago and as most of Europe is now), renting from a small number of property owners who use existing portfolios to borrow against in order to grow their base.
Time to start realising this simple fact.