Tuesday, Aug 10, 2010
RICS balance -8
Daily Mail: House price fall fuels fear of double-dip recession
Fears of a double dip recession rose yesterday after the majority of estate agents reported price falls for the first time in a year.
RICS said eight per cent more estate agents are reporting a fall in house prices than the combined total of those reporting stable or rising prices.
This is the first time there has been a majority reporting falls since July last year.
Looking ahead, a majority of agents believe prices will fall over the coming months.
Posted by little professor @ 01:21 AM (1440 views) Add Comment
6 Comments
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1. debtfree said...
Jeremy Dell, of JJ Dell & Company, Oswestry, Shropshire, said: ‘For me the market is the worst it’s ever been. ‘The government’s determination to balance the books has undermined confidence.’
Straight from the horses mouth.
An estate agent telling the truth ? Must be really bad.
2. mark wadsworth said...
The Daily Mail really are the cutting edge of Home-Owner-Ist double think. Falling house prices are the result of, and not the cause of, recessions.
In any event, there is a good argument to say that the economy won't pick up until house prices have bottomed out again (at much lower prices than today). My scant evidence for this is what happened in the 1990s, things started picking up just as house price falls flattened off.
3. hash browne said...
"The average price of a first home is £142,457, which is 4.6 times the average gross salary."
This suggests the average salary is £31k.
Just on Sunday this paper had an article about 20% of council house tenants earning £50k a year and how outrageous it is since the average salary is only £20k.
Funny how they pick and choose figures that suit their agenda.
4. Runforyourlives said...
Only 8 days ago they run with the headline "prices to go up 20%"
5. str 2007 said...
hash browne
So from that we could conclude that ave FTB houses at £142k are 7x ave. FTB salary.
Funny how FTB houses are only 20-25k less than that of average houses.
Unfortunately BTLers will be back in with 20% off so I can't see it improving much past 5-6 times ftb salary or 3.5-4 times if you take their figures.
Still, we live in hope
6. timmy t said...
Well said MW...
Cheap houses = more diposable income = sustainable economic growth
Inflating houses = MEW = short term economic boom followed by bust when they can't inflate any more
The UK's problem is laziness. Too happy getting rich quick for doing naff all when we should be out working.