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House Prces And Shares Up... Front Page Of Daily Express

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As predicted here, today's front page of Daily Express, after yesterday's Halifax figures. :rolleyes:

http://www.express.co.uk/posts/view/209657/House-prices-and-shares-up/

HOUSE PRICES AND SHARES UP

AN unexpected raft of positive economic news provided a boost for homeowners, pensions and businesses yesterday.

The stock market soared to its highest level in more than two years, adding thousands of pounds to the value of workers’ pension funds. Sterling reached a nine-month high against the dollar. And house prices rose at their fastest rate for 18 months.

The 1.8 per cent jump in October pushed the cost of the average home to £164,919 – 6.6 per cent above the trough reached in April 2009, according to the Halifax.

Alongside the Bank of England’s decision to leave interest rates at a record low of just 0.5 per cent for the 19th consecutive month and better than expected manufacturing data, Britons worried about mortgages and their jobs were offered a glimpse of light at the end of the longest recession in history.

The stronger economic figures will also deliver a fillip to David Cameron, who is counting on a sustainable recovery to justify the massive programme of cuts announced in the Comprehensive Spending Review.

More good news... FSTE at 2-year high and Sterling hits a 9 month high against the Dollar and house prices bounce back..

http://news.sky.com/skynews/Home/UK-News/Fridays-Papers---Newspaper-Front-Page-On-Friday-November-5-2010/Media-Gallery/201011115795381?lpos=UK_News_Left_Promo_Region_0&lid=GALLERY_15795381

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so taking inflation into account:

real prices have risen 0-2% in 18 months.

Woo!

I think the HPC we get from here on in will be modest falls (5-10%) coupled with high RPI to cause a stealth devaluation. A bit like last time in that respect.

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Everything is positive now including:

1. Stocks

2. House prices and BTL

3. Sterling

4. Gilts (thanks to IMF rave review of Koalishon cure for the Brown years)

5. Services growth and GDP generally.

If all of these indicators remain in the positive trend what is to stop our No.1 industry from taking off again? That is, HPI?

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Don't worry, HPI is finished as a driver of the economy. Mortgages are becoming more sensible, Interest rates will rise over the next few years. The correction is moving slowly since the peak in 2007, I would expect the trend to continue until prices drop back to the long term income multiple, Another 10-20% nominal + Inflation over the next 3-4 years.

This good news is the best way to get rates up, no more QE and prices down in the long term. To much bad news and we will see the BOE protecting the market with the printing presses running full steam ahead.

More real economy, less HPI please.

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disapointed to note they fail to show that the house my father bought in 1961 for £3200 is now 100 times more expensive.

shame on them

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Everything is positive now including:

1. Stocks

2. House prices and BTL

3. Sterling

4. Gilts (thanks to IMF rave review of Koalishon cure for the Brown years)

5. Services growth and GDP generally.

If all of these indicators remain in the positive trend what is to stop our No.1 industry from taking off again? That is, HPI?

Obviously whenever the deflation that you have been going on about endlessly kicks in. :lol:

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so taking inflation into account:

real prices have risen 0-2% in 18 months.

Woo!

I think the HPC we get from here on in will be modest falls (5-10%) coupled with high RPI to cause a stealth devaluation. A bit like last time in that respect.

No that's wrong. Actual Halifax YOY figure is 0.0% so with CPI at 3.1% that would make a -3.1% real fall.

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I am thinking about giving up. How can HP be going up? How can shares be going up when long term interest rates are low... when long term rates are low, its means expectations of weak growth, meaning low wage increases, meaning low increases in aggragate demand... meaning poor long term prospects for the economy... am i the only one seeing this?!!??!?!

How can house prices be back to normal when supply restrictions of mortgages - the main way people buy houses in this day and age are as strict as ever...

Complete madness.

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I am thinking about giving up. How can HP be going up? How can shares be going up when long term interest rates are low... when long term rates are low, its means expectations of weak growth, meaning low wage increases, meaning low increases in aggragate demand... meaning poor long term prospects for the economy... am i the only one seeing this?!!??!?!

Long term rates are low for two reasons 1. Central Banks cutting short term rates close to 0% and even printing money to force long term rates lower and 2. lack of risk appetite.

1 is very prominent at the moment and is likely to cause further asset bubbles down the line.

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I am thinking about giving up. How can HP be going up? How can shares be going up when long term interest rates are low... when long term rates are low, its means expectations of weak growth, meaning low wage increases, meaning low increases in aggragate demand... meaning poor long term prospects for the economy... am i the only one seeing this?!!??!?!

How can house prices be back to normal when supply restrictions of mortgages - the main way people buy houses in this day and age are as strict as ever...

Complete madness.

You can't give up after nine posts and two months on this forum!! Have you no stamina?

Houseprices are crashing BUT so few transactions are making the indexes unreliable on a month to month basis.

These headlines are sheer desperation they ignore the falls and shout about the rises these papers and their owners have a lot to lose.

DONT WORRY ITS STILL FULL ON TURBO CHARGED HPC the market can't be turned now and its heading for the rocks.

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I am thinking about giving up. How can HP be going up? How can shares be going up when long term interest rates are low... when long term rates are low, its means expectations of weak growth, meaning low wage increases, meaning low increases in aggragate demand... meaning poor long term prospects for the economy... am i the only one seeing this?!!??!?!

How can house prices be back to normal when supply restrictions of mortgages - the main way people buy houses in this day and age are as strict as ever...

Complete madness.

f these are asking prices then we all know the new sellers are putting there houses on the market with inflated prices, as they know they will have to accept low offers, so halifax figures are useless.

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I am thinking about giving up. How can HP be going up? How can shares be going up when long term interest rates are low... when long term rates are low, its means expectations of weak growth, meaning low wage increases, meaning low increases in aggragate demand... meaning poor long term prospects for the economy... am i the only one seeing this?!!??!?!

How can house prices be back to normal when supply restrictions of mortgages - the main way people buy houses in this day and age are as strict as ever...

Complete madness.

Full marks for giving it a good go (Joined 4 September 2010, "thinking about giving up" 5 November 2010)

I think there's quite a lot on this site - that you may not yet have got round to reading - that will tell you exactly why prices are NOT going up. Search for any thread containing references to "Daily Express" and you'll see that why they pump out this selective bilge, every time there's anything they can take entirely out of context.

As someone's mentioned earlier on this thread, the "must have it now" mentality is what has caused a lot of the damage to UK plc - the real recovery will only come when a more balanced and long-termist approach becomes the norm, and when the population at large learns to weed out the real facts from the VI propaganda.

Patience Grasshopper ;)

B

PS. That's my kind, balanced, and "assuming value" response. The other obvious possibility is that you're a multi-ID faux-bear troll, in which case the appropriate response is "feck off and stop being a tool..." :D

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saw it on the garage shelf on my travels today.had to laugh.

quite.give doommongering a chance.do you think we all became this pessimistic over a couple of weeks.takes years dude.

Quite right. I'm a newbie in HPC terms. Some of this lot have been at it for years, man and boy.

I remember the heady days of '06, the ****-eyed optimism that HPC was just around the corner.......

Edited by Mancghirl

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I am thinking about giving up. How can HP be going up? How can shares be going up when long term interest rates are low... when long term rates are low, its means expectations of weak growth, meaning low wage increases, meaning low increases in aggragate demand... meaning poor long term prospects for the economy... am i the only one seeing this?!!??!?!

How can house prices be back to normal when supply restrictions of mortgages - the main way people buy houses in this day and age are as strict as ever...

Complete madness.

House prices going up? Where did you hear that down the EAs office?

I don't know how many times I have to keep saying this to people but:

According to Halifax

Prices over the last three months -1.2%

prices over the last year 0.0%

prices since the end of 09 -2.3%

Hardly rising are they.

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The rag is owned by a property investor .... a conflict of interest? Never. The Daily Shower is for the hard of thinking. MAKE EM ANGRY! MAKE EM FEEL GOOD! No wonder mental illness is so common these days!

Edited by Home_To_Roost

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The Daily Exaggeration didn't quite go for the 22% increase per year or the prices to double in 3 years YET but give 'em time. Give them credit the Standard's doing a bit of rearguard action on that one. No there's none of that top to bottom US endemic fraud in the UK :lol:

AN unexpected raft of positive economic news provided a boost for homeowners, pensions and businesses yesterday.

Oh lor now it's an "unexpected raft" :lol:

All the unexpected rafts I've ever seen in the movies end up going rapidly over a waterfall.

Edited by billybong

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  • 261 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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