Jump to content
House Price Crash Forum
Sign in to follow this  
CynicAl

House Prices, Nominal, Real And Qe

Recommended Posts

In light of the imminent QE, how much of the crash will now be a nominal drop and how much will be an erosion in real price?

And when would be just as well buying a house (while our deposits are still worth something) and letting inflation take it's course?

Circumstances meant am I only now in a position to ditch Sterling......

Share this post


Link to post
Share on other sites

The situation over the past few months has been the reverse to what you're suggesting. Looking at the RPI data, it seems we've had 2% DEFLATION from September to December. This produces rather an odd result: nominal falls in house prices are now greater than the inflation-adjusted figures.

Whether QE will reverse this is anyone's guess. I'm not an expert, but I hear that once deflation sets in, it's very hard to correct.

Share this post


Link to post
Share on other sites

I was thinking about the reversal that QE may bring on.

Of course, some think that in order to suck the money from the system in c18 months that interest rates will have to rise pretty dramatically. That'll cripple the housing market in a different way.....

Sometimes I think that I should have stuck with Economics at Uni, but the rest of the time I think that I would have bought into received wisdom on subjects which appear to be insufficient at this time.

Getting out of this crisis is like trying to untie the Gordion knot.

sp.

Edited by CynicAl

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.