Countrywide M D:rate Cut Won't Boost House Prices

[zzg113]

http://go.reuters.co.uk/newsArticle.jhtml?...alog/GetContent

Industry experts say that while lower interest rates may encourage more Britons to buy a home, one cut will not be enough to fuel a house price boom, and a return to the double-digit rates of price growth seen a year ago is highly unlikely.

"I think it absolutely will not stoke house prices. But what it may do is encourage volumes in what has been the worst market in many, many years," said Harry Hill, Managing Director of estate agency chain Countrywide.

Hill said sales volumes at Countrywide, which represents 8 percent of the British housing market, had plummeted in the last nine months

[Red Baron]

I also hear from my 'mole' at Taylors, another very large EA chain, that this year has been 'absolutely terrible'.

He added 'we are all pinning our hopes on more rate cuts and SIPPs to revive the market'.

Edited August 5, 2005 by Red Baron

[sign_of_the_times]

Harry Hill

the one with the big collar ??

[zzg113]

the one with the big collar ??

<{POST_SNAPBACK}>

Well, the house prices are a joke, so it's only fitting that a comedian should sell them (or not, as it turns out).

[Guest Bart of Darkness]

to fuel a house price boom, and a return to the double-digit rates of price growth

Like that's going to happen under any circumstances.

[Levy process]

and a return to the double-digit rates of price growth seen a year ago is highly unlikely

Ha ha ha! Of course, it is just possible if wage growth goes up into double digits, and suddenly everybody has oodles more money. Now, let us see, is that likely? Hmmmm......

[Islandape]

Well, the house prices are a joke, so it's only fitting that a comedian should sell them (or not, as it turns out).

<{POST_SNAPBACK}>

How much are badger sets up for?

[Harry Sacks]

"Industry experts say that while lower interest rates may encourage more Britons to buy a home, one cut will not be enough to fuel a house price boom, and a return to the double-digit rates of price growth seen a year ago is highly unlikely."

So we need more cuts to stablize the economy with a housing bubble?

Yeah that'll do it!

And this will continue forever and ever, right?

So, property is now a poor investment, low yield, no capital growth?

Ahh, I see now, cut rates and encourage investment until growth slows, then cut rates again.

Pardon me for being so short sighted.

[right_freds_dead]

yeah dom - get with the uk social housing program.

dont you know houses have the potential to rise to infinite amounts - regardless of earnings and yet at the same time, they can never ever fall. only stagnate. then rise again. this phenomenon is caused by vistas from st david. often referred to as the wafer effect.

Edited August 6, 2005 by right_freds_dead