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Realistbear

D T : Houses To Fall A Further 25%

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http://blogs.telegraph.co.uk/finance/ianmcowie/100006841/why-house-prices-must-fall-by-25-per-cent-or-more/

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Nobody expects interest rates to rise soon. But what will happen to demand when they do rise? More importantly, what will happen to supply when tens of thousands of new public sector jobs created by the last government are cut by the coalition as it struggles to reduce budget deficits?
Even if we suffer a double-dip recession, most homeowners will sit out this downward correction, comforting themselves with the knowledge that their properties often gained more in value than their owners earned after tax in the good years. But rising numbers of buyers will no longer have that option if their income is terminated and they cannot afford to meet monthly bills. Some may feel forced to sell at almost any price; others will simply send the keys back.
House prices have fallen by less than a fifth – 17 per cent to be precise, as measured by Halifax – from the all-time peak they reached in August, 2007. The obvious conclusion is that they have much further to fall. A decrease of about 25 per cent in prices would bring them into line with the increase in supply we have already seen. But government spending cuts mean more sellers look set to enter the market, depressing prices further.

I could not agree more.

I am actively looking in my area and expect at least 25% off from peak NOW. Been given notice by my LL so have to move and rentals are sky-high due to demand from those who do not want or can not buy.

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  • 258 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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