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City Says Housing Recovery Is In Sight

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http://business.timesonline.co.uk/tol/busi...icle6579493.ece

City says housing recovery is in sightGary Duncan, Economics Editor

The housing market slump is close to ending, with prices set to bottom out later this year and begin rising again by 2011, the City is predicting.

A growing majority of economists are calling the end of a housing crash that has so far wiped about a fifth, or more than £40,000 on average, off home values.

A poll of economists by Reuters found a consensus that house prices will drop by 8 per cent this year — having so far fallen by about 3 per cent since January and by 16 per cent during the past year.

But the City’s experts are betting that average prices will then stay broadly flat next year and start rising again from 2011, climbing by 2 per cent.

The predictions point to a total plunge in the cost of a typical home, since prices peaked in autumn 2007, of about a quarter, cutting the average house price by about £50,000 from a high of just under £200,000. That is less severe than the drop of a third that analysts had previously forecast.

As recently as March, economists were predicting an average 14 per cent fall in house prices this year and a further 4 per cent drop next year. Now 23 out of 33 economists polled said that house prices should stabilise within a year, with 11 predicting a trough within six months.

“We will get a few more month-on-month negatives but it is pretty flat from here,†Alan Clarke, of BNP Paribas, the leading City bank, predicted.

A key constraint on the market remains banks’ unwillingness to lend to many buyers at economical rates.

Banks fear big losses on past, lax lending and are battling to shore up strained finances. A report yesterday from Calnea, a consultancy, warned that lenders could face cumulative ten-year losses on secured loans of up to £15 billion, on extreme scenarios — and between £7 billion and £11 billion on more moderate ones. Using data from the Financial Services Authority, Calnea also estimated that as many as 2.9 million homeowners could now be in negative equity, with their homes worth less than their outstanding mortgages if “second charge†and buy-to-let loans were included.

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so you think that posting up a quote like this is useful for some reason???? When it

1 - explains that a bunch of thieves who have demonstrated time and again that they can't predict the future are yet again trying to predict the future

and

2- nothing

if you need it explaining to you yet again, you're obviously dumber than we all think.

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Are these the same economists that failed to predict the crash as well?

Got good form then?

Yes, but lessons have been learned since then

:lol:

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The Murdochs have been spewing out this nonsense for days.

Perhaps Rupert's the only media king left who still supports Gordon Brown?

The daft man probably believes that he can kick-start the economy by stimulating consumer confidence.

Edited by gruffydd

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is this the same 'city' that didnt see this disaster coming and are unable to work out earnings to debt ratio's. are these people not vested into getting us into debt and overpriced assets off their hands ?

the 'city'

a collection of greedy assholes who would do anything, sell anything, entrap anyone daft enough to beileve they are some kind of experts in this field. they havent a clue what they are doing. the collapse of the system proved that. alan sugar got stiffed for 200 million in a year. isnt he a 'city' expert surrounded by city experts ?

pah. anything they recommend from that part of the coutry is best avoided at all costs.

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Are these the same economists that failed to predict the crash as well?

Got good form then?

Yeah..

In other news.. MD of Ladbrokes rang me with a tip today..says it's a certainty

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is this the same 'city' that didnt see this disaster coming and are unable to work out earnings to debt ratio's. are these people not vested into getting us into debt and overpriced assets off their hands ?

the 'city'

a collection of greedy assholes who would do anything, sell anything, entrap anyone daft enough to beileve they are some kind of experts in this field. they havent a clue what they are doing. the collapse of the system proved that. alan sugar got stiffed for 200 million in a year. isnt he a 'city' expert surrounded by city experts ?

pah. anything they recommend from that part of the coutry is best avoided at all costs.

I take it you are not a fan of "the city" then?! :lol:

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I take it you are not a fan of "the city" then?! :lol:

what has the city ever given me ?

it just takes off people.

those black bonus porsches dont just come from thin air.

they come from ripping off the public.

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I take it you are not a fan of "the city" then?! :lol:

News in USA yesterday: Jobless figures worse than expected. Result? DOW goes up.

News in UK today: BA cuts jobs and wages, more job loss threats from Jaguar Land Rover and BoE finally tell Labour their policy over the last 10 years was unsustainable and sucks. Result? FTSE up, BA up, recovery here!

:blink:

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News in USA yesterday: Jobless figures worse than expected. Result? DOW goes up.

News in UK today: BA cuts jobs and wages, more job loss threats from Jaguar Land Rover and BoE finally tell Labour their policy over the last 10 years was unsustainable and sucks. Result? FTSE up, BA up, recovery here!

:blink:

pretending to be up. as soon as they get enough mugs back into stock they will be sure to empty it again.

and again and again. this is what the 'city' does.

it does not do ANYTHING else.

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Just look at the comments posted after the article.... http://business.timesonline.co.uk/tol/busi...icle6579493.ece

The vast majority of them show the real sentiment out there.... It would seem a LOT of people are heartily SICK of yet another pathetic attempt to ramp property.... :rolleyes:

Come on, own up!? Who posted these comments?

How dare you not respect the City's RECOVEREH! :lol:

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Come on, own up!? Who posted these comments?

How dare you not respect the City's RECOVEREH! :lol:

:lol:

I want to know who this one was. There was some respect there, that's for sure.

And about time too !

This is tremendous news for the British economy if true .

GrahamH, Warrington, UK

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