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The Masked Tulip

Thirty Years Of Reasons To Fear Housing Market

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from the link above

Houses for first-time buyers are the least affordable since the third quarter of 1989, when rising energy prices and higher Federal Reserve interest rates last coincided with a bursting bubble, Rosenberg wrote in a research note this week. ``New home sales plunged 20 percent in the ensuing year as demand responded to the affordability erosion,'' he said.

deja-vu?

oh, i forgot, it's different this time.

and

``Bubbles usually end, not necessarily because of higher interest rates, but because you eventually reach a price point where the bids dry up,'' wrote Rosenberg at Merrill. ``When you treat your rising home price as a bonus to be spent every year, and that source of so-called income dries up, so does your economic activity.''

i think a lot of folk on here should work for Merrill - this has been said on here for ages.

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  • 335 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%



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