The Masked Tulip Posted October 17, 2010 Share Posted October 17, 2010 The housing market is heading for a double dip and will take five years to recover, a leading economist has claimed.Peter Spencer, chief economic adviser with leading financial forecasters Ernst & Young Item Club, said property values would fall by 5 per cent over the next 12 months. The predictions are based on the Treasury’s own forecasting models. And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers. He said: ‘We have been very bearish on the housing market for some time. Demand from first time buyers is drying up because there are only so many that can call on “the bank of mum and dad” for a large deposit. ‘What really matters for the housing market is the number of people who can get a decent 80 per cent or 90 per cent mortgage.’ Mr Spencer added that young people were opting not to even try to step onto the property ladder because of the high costs involved. ‘My generation has been planning to sell our houses at over-inflated prices to our children – but many of them are not interested. The game has changed.’ Mr Spencer said that price increases earlier this year were due to a shortage of houses on the market, but that these had encouraged more people to try to sell their home. He added that property values had also been buoyed by cash buyers who did not need to raise a mortgage, but said: ‘There are only a finite number of those.’ Read more: http://www.dailymail.co.uk/news/article-1321381/House-prices-face-double-dip-recovery-years.html#ixzz12ejPr2g8 Quote Link to comment Share on other sites More sharing options...
moonriver Posted October 17, 2010 Share Posted October 17, 2010 Interestng, and as we have been saying on here for some time....eventually the cash buyers will dry up, as will the bank of mum and dad. Quote Link to comment Share on other sites More sharing options...
billybong Posted October 17, 2010 Share Posted October 17, 2010 The housing market is heading for a double dip and will take five years to recover, ... At least 5 years to bottom out more like. Quote Link to comment Share on other sites More sharing options...
Fairies Wear Boots Posted October 17, 2010 Share Posted October 17, 2010 Five percent over 12 months. I'll be very dissapointed if thats all we get. Quote Link to comment Share on other sites More sharing options...
Si1 Posted October 17, 2010 Share Posted October 17, 2010 At least 5 years to bottom out more like. +1 Quote Link to comment Share on other sites More sharing options...
timmy2000 Posted October 17, 2010 Share Posted October 17, 2010 well no one saw that one coming did they and suprize suprize people are puting prices up now i wonder whos telling them to do that ????????????????? I looked at a repo flat last week avertised as a two bedroom when we got there it was a 1 bedroom and a hallway not 3 foot wide whitch the last people used as a bedroom where the door to the garden was anyway not being the ea biggest fan at the best of times i let the little tit have it and he tried to blame the lender who repod it saying that they said it had to be avertised as a two bedroom!! he must think im as stupid as he is lol anyway its good to see them getting desperate i was in town today waiting for the missis looking in the window of an ea and they actully came out and asked if they help me and i said yes lower your prices down to reality as you are obvisly deserate and he went back in looking upset he new what i ment and this is in west sussex where aprantly prices havent dropped its true they are still the same price just no one is buying them. 2 ea gone in town already hopefully loads more to follow after all they are only a wart on face of britain left over from the days of easy money Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 17, 2010 Author Share Posted October 17, 2010 well no one saw that one coming did they and suprize suprize people are puting prices up now i wonder whos telling them to do that ????????????????? I looked at a repo flat last week avertised as a two bedroom when we got there it was a 1 bedroom and a hallway not 3 foot wide whitch the last people used as a bedroom where the door to the garden was anyway not being the ea biggest fan at the best of times i let the little tit have it and he tried to blame the lender who repod it saying that they said it had to be avertised as a two bedroom!! he must think im as stupid as he is lol anyway its good to see them getting desperate i was in town today waiting for the missis looking in the window of an ea and they actully came out and asked if they help me and i said yes lower your prices down to reality as you are obvisly deserate and he went back in looking upset he new what i ment and this is in west sussex where aprantly prices havent dropped its true they are still the same price just no one is buying them. 2 ea gone in town already hopefully loads more to follow after all they are only a wart on face of britain left over from the days of easy money A couple of Eas in my part of the world that had begun opening on Sundays again weren't open today Quote Link to comment Share on other sites More sharing options...
timmy2000 Posted October 17, 2010 Share Posted October 17, 2010 yer its even better when they dont open for the other six days though Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted October 18, 2010 Share Posted October 18, 2010 And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers. Phew! For a minute I thought the problem might have been that houses were too expensive, but it's just the banks refusing to give 7-10 times salary loans Those nasty banks refusing to give people ludicrous amounts of credit in the biggest depression since the 1930s. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted October 18, 2010 Share Posted October 18, 2010 And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers. Actually they are ONLY lending affordable loans now. Is that a bad thing? Nob! Quote Link to comment Share on other sites More sharing options...
Giordano Bruno Posted October 18, 2010 Share Posted October 18, 2010 At least 5 years to bottom out more like.A lot more than 5 years to bottom out, imo. Judging from past behaviour. Quote Link to comment Share on other sites More sharing options...
Umaguma Posted October 18, 2010 Share Posted October 18, 2010 Actually they are ONLY lending affordable loans now. Is that a bad thing? Nob! +1 - Laughable It's a problem for the feckless and shysters that the banks are not lending irresponsibly bring it on Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 18, 2010 Share Posted October 18, 2010 So they expect a price recovery in 5 years? Quote Link to comment Share on other sites More sharing options...
timmy2000 Posted October 18, 2010 Share Posted October 18, 2010 So they expect a price recovery in 5 years? more like 50 years Quote Link to comment Share on other sites More sharing options...
richc Posted October 18, 2010 Share Posted October 18, 2010 At least 5 years to bottom out more like. It's close to 20 years now since the peak in Japan and prices are still falling. Quote Link to comment Share on other sites More sharing options...
Colin Posted October 18, 2010 Share Posted October 18, 2010 "And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers." Perhaps Mr Spencer could persuade the banks to offer me an affordable loan for a private Island in the Bahamas. Quote Link to comment Share on other sites More sharing options...
Traktion Posted October 18, 2010 Share Posted October 18, 2010 ‘My generation has been planning to sell our houses at over-inflated prices to our children – but many of them are not interested. The game has changed.’ Oh, I bet that truth hurts! Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted October 18, 2010 Share Posted October 18, 2010 Oh, I bet that truth hurts! Yes, that was the line that leapt out of the page at me too. And so very true. Quote Link to comment Share on other sites More sharing options...
Michael Posted October 18, 2010 Share Posted October 18, 2010 yes, i have always wondered why even the most bearish house price forecasts say prices will take as short a time as 4 or 5 years to recover........ ...how about 20 years? Quote Link to comment Share on other sites More sharing options...
Si1 Posted October 18, 2010 Share Posted October 18, 2010 A couple of Eas in my part of the world that had begun opening on Sundays again weren't open today could this be turning into another one of those 'really mundane' threads? Quote Link to comment Share on other sites More sharing options...
Si1 Posted October 18, 2010 Share Posted October 18, 2010 yes, i have always wondered why even the most bearish house price forecasts say prices will take as short a time as 4 or 5 years to recover........ ...how about 20 years? +1 Quote Link to comment Share on other sites More sharing options...
fellow Posted October 18, 2010 Share Posted October 18, 2010 . Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.