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Danish government prices will drop!

However the Minister for Business and Economic Affairs, Bendt Bendtsen, says there will be no helping hand offered to house owners if they do find themselves in trouble when prices drop.

“People must get used to the idea that house prices are going to be significantly lower in the coming years than they have been,” he said,

The Danes don't beat about the bush!!!!!!!!

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now that's what I call honest government.

no bullsh1t,no spin....tell it like it is.

I think the danes wil actually fare better than th UK in this downturn.they seem to have a pretty straightforward way of talking the market down.

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Guest rigsby II
The Danes don't beat about the bush!!!!!!!!

No they don't, but from the same article...

the Ministry for Business and Economic Affairs says it will not be a catastrophe.

A report from the Ministry concludes that even if interest rates do inevitably soar and house prices drop, most home owners can rest assured that their finances will not be severely affected.

adding that the Danish economy is in good shape and that most families will be able to withstand interest rate increases and a period of lower housing prices.

Amazing what selective quoting can do...

:)

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No they don't, but from the same article...

the Ministry for Business and Economic Affairs says it will not be a catastrophe.

no it probably won't be.Their govt have done the sensible thing and not tried to paper over the cracks.as a result the danes will probably see a softer landing than we will!!!!!

uk has just tried to convince people all is rosy,when it becomes apparrent that all is not well,I think we are destined for a stampede to the exit rather than an orderly march.....if anyone here has ever dealt with crowd control at festivals or football matches,then you know what's coming up!...orderly exit is much easier to deal with!

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“People must get used to the idea that house prices are going to be significantly lower in the coming years than they have been,” he said, adding that the Danish economy is in good shape

So even though the Danish economy is in good shape, the Danish Minister for Business and Economic Affairs believes that house prices are going to be significantly lower in the coming years than they have been...!

Imagine a country where the economy wasn't in good shape...! :o

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uk has just tried to convince people all is rosy,when it becomes apparent that all is not well,I think we are destined for a stampede to the exit rather than an orderly march.....if anyone here has ever dealt with crowd control at festivals or football matches,then you know what's coming up!...orderly exit is much easier to deal with!

[snap back]181092[/snap back]

Spot on.

Anybody worth their salt knows what's coming next, a Housing Market Correction. All they {the government] can hope to do is manipulate an orderly deflation of house prices, uttering assurances of soft landings, house price stagnation and the like. As you say the last thing they want is a mad dash for the exit. The " government wont let it happen Brigade" are in for a nasty shock, governments lie Period.

The government knew the reduction in interest rates would fuel a housing market bubble. But the "City" needed "Joe Public" to put his hand in his pocket and spend spend spend, to bolster a "Financial Market" in danger of collapse after Industry stopped spending.

Now Joe Public is "pigged out on credit" and house price inflation has ground to a halt. All those that have MEW'd have spent the dosh and the Treasury has pocketed the cash in higher tax receipts funded by this extra spending. However energy costs are rising, fuel is rising, soon taxes will rise, less and less money to spend in the shops in peoples pockets. Less money chasing ever higher house prices, hence the laws of the market will kick in and prices will reverse.

Of course those who bought into the mad scramble to grab their slice of easy money in the latest housing market "pyramid scheme" will watch their "perceived wealth" disappear, unfortunately though they will be left with the debt.

But once house prices correct thus enabling those hitherto locked out of the market due to a lack of affordability to enter the market. The economy will crank up again, and the spending spree brought about by a buoyant housing market will once again fill the government coffers. And we will all have experienced [many for the first time] the ebb and flow of the housing market price cycle, unless of course "Its Different This Time" :rolleyes:

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I AM CONFUSED - are prices falling or not?

This says... Not yet:

"Nationwide’s data suggest that house prices are now rising by no more than inflation, which reached 2.3 per cent on the consumer price index last month. Compared with the retail price index, which is currently rising by 2.9 per cent a year, house prices are now falling slightly in real terms.

However, property sellers preparing for the Property Investor Show this month at the ExCeL Centre in East London, poured scorn on “doom and gloom merchants” who have predicted sharp falls in house prices.

Nick Clark, managing director of the show, said: “Many so-called experts have been overly pessimistic in their predictions for the market’s future in their quest for media notoriety at the expense of sensible analysis. Double-digit house price inflation was indeed unsustainable, but wider economic conditions and the continuing high demand for housing lend themselves to a relatively strong market and, at the very worst, a stabilisation of prices.”

However, Ed Stansfield, of Capital Economics, who is one of the leading housing “bears”, said: “The big picture of slower economic growth, record housing market valuations and stretched affordability suggests that significant further falls are likely.”

He noted that the three-month house price rise recorded by Nationwide dropped from 0.6 per cent in the three months to July to 0.3 per cent in the three months to August.

Mr Stansfield also pointed to data from Australia showing that house prices fell by 0.1 per cent in the year to the second quarter of 2005, after several years of double-digit growth, as in the UK. He said the figures “cast fresh doubt on the view that somehow house price inflation has a magic floor at zero”. "

from http://property.timesonline.co.uk/article/...1761083,00.html

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I AM CONFUSED - are prices falling or not?

This says... Not yet:

"Nationwide’s data suggest that house prices are now rising by no more than inflation, which reached 2.3 per cent on the consumer price index last month. Compared with the retail price index, which is currently rising by 2.9 per cent a year, house prices are now falling slightly in real terms.

However, property sellers preparing for the Property Investor Show this month at the ExCeL Centre in East London, poured scorn on “doom and gloom merchants” who have predicted sharp falls in house prices.

you need to learn to spot a VI, dear Sir !

Edited by sign_of_the_times

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  • 301 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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