fellow

China Cuts Mortgage Rates to Counter Collapse in Home Sales https://www.bloomberg.com/news/articles/2022-05-15/china-cuts-mortgage-rate-floor-for-first-time-homebuyers

China’s Economic Activity Collapses Under Xi’s Covid Zero Policy https://www.bloomberg.com/news/articles/2022-05-16/china-s-economy-contracts-sharply-as-covid-zero-curbs-output "Industrial output unexpectedly fell 2.9% in April from a year ago, while retail sales contracted 11.1% in the period, weaker than a projected 6.6% drop. The unemployment rate climbed to 6.1% and the youth jobless rate hit a record. Investors responded by selling everything from Chinese shares to US index futures and oil".

China Cuts Mortgage Rates to Counter Collapse in Home Sales https://www.bloomberg.com/news/articles/2022-05-15/china-cuts-mortgage-rate-floor-for-first-time-homebuyers New Zealand banks predict 20% drop in house prices over next year https://www.theguardian.com/world/2022/may/17/new-zealand-banks-predict-20-drop-in-house-prices-over-next-year

It's a 0.6% fall in prices. The 12.6% is sales volumes.

But Andrew Bailey told people not to ask for pay rises. Their disobedience means he will have to raise rates instead.

The problem is, if prices drop 30% the economy will be so screwed that prices will drop 40%.

This has nothing to do with house prices or the economy.

But what if their hours have been reduced due to people spending less?

There are so many bearish articles at the moment, it is like the media want prices to crash. Either that or they are trying to influence the BOE to stop raising rates?

Don't be surprised if house prices drop 20pc https://www.telegraph.co.uk/business/2022/05/15/dont-surprised-house-prices-drop-20pc/ "Our combination of high interest rates and a weak economy is deadly for the housing market. One key metric that is flashing red is the ratio of average house prices to average earnings (HPE). It currently stands at 7.7, having recently surpassed the previous peak of 7.5, registered in 2007, just before the global financial crash. This crisis was followed by a fall in average house prices of 18pc. The long-term average value for the HPE, going back to 1970, is 5.1. As is usually the case at the peak of the market, valuations currently look particularly stretched".

House price crash fears: Millions face owning 'unsellable' homes over interest rate chaos https://www.telegraph.co.uk/business/2022/05/15/dont-surprised-house-prices-drop-20pc/

2021 - the year of Buy To Regret.

And the banks will increasingly force gazundering through down valuing

The Government needs to investigate itself for doubling the national debt. What else could be more inflationary than that?

It will help the cost of living because the sacked "workers" won't be able to buy anything.

All the COVID overspending chickens coming home to roost.

Mods please merge with

Bloodbath for civil service: 91,000 jobs will be axed as one in five staff are expected to go in huge shake-up that could save £3.5bn to ease cost of living crisis https://www.dailymail.co.uk/news/article-10811331/Bloodbath-civil-service-91-000-jobs-axed-shake-save-3-5bn.html

Why on earth would you offer 3% above asking price when you have just seen the market turn in favour of buyers?

Virgin money have just increased their fixed rates significantly. I have just locked into a 1 year fixed ISA at 1.76% and a one year savings bond at 2.00%. Easy access are all pitifully low so thought it was well worth fixing for a year but didn't want to fix longer than this as rates are likely to be higher next year.

"He who controls the money supply of a nation controls the nation" - James A. Garfield

This is the last chance for property investors to cash in their gains but don't leave it too late. If you are going to panic, make sure you panic first or you will lose out. Buyers' FOMO (fear of missing out) is about to be replaced by sellers' FOLO (fear of losing out).

Ask Zimbabwe how this worked out for them.

Thanks, this definitely deserves its own thread so I have created one here:

Should I sell my home now if house prices are at their peak? https://www.telegraph.co.uk/property/uk/should-sell-house-prices-peak/ "Those with houses on the market are racing to accept offers before prices fall. The power balance in the housing market is turning. Sellers who last year received multiple bids and offers 20pc higher than they asked are now rushing to shift homes before prices fall....".