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Boe’S Bean Says Can’T See Signs Of Housing Boom Emerging

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http://www.bloomberg.com/news/2013-08-26/boe-s-bean-says-can-t-see-signs-of-housing-boom-emerging-in-u-k-.html

Bank of England Deputy Governor Charlie Bean said he isn’t worried the U.K. housing market is poised to suffer a new bubble.

“We wouldn’t want to see a house price boom emerging which would have potential problems further down the road,” Bean said in an interview with Bloomberg News published yesterday. “I can’t say we see signs of that at the moment. At this stage, you certainly wouldn’t say there’s a problem.”

With housing having struggled during Britain’s recession, signs are mounting that a recovery in the property sector is now underway, partly because of government measures to boost demand. A home-value gauge compiled by the Royal Institution of Chartered Surveyors rose to the highest in almost seven years in July.

Speaking during a Federal Reserve Bank of Kansas City conference in Jackson Hole, Wyoming, Bean said the central bank would like to see an increase in housing transactions and that home prices were for the moment increasing in line with general inflation.

“I don’t think that we’d want to see a situation where house prices are running ahead at an unsustainably rapid rate,” he said. “Clearly it’s one of the things to look at as all the activity indicators pick up -- are there any signs of excesses starting to emerge?”

How nice he doesn't think we'd want to see house prices running at a unsustainable rate yet somehow house price increases running at inflation now would be!

Is this an official denial about a housing boom?

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Given that the dyscalculic charlatans at the BoE failed utterly to identify the last housing bubble the likelihood of them being able to detect a second must be slight.

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Given that the dyscalculic charlatans at the BoE failed utterly to identify the last housing bubble the likelihood of them being able to detect a second must be slight.

They don't actually mean what they say. They just tell market actors whatever they want to hear. "Interest rates will stay low forever, inflation will stay low forever, high asset prices are sustainable, blah blah blah"

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Climbing house prices are spurring consumer confidence and growth in a country where two thirds of homes are owned rather than rented.

They can say what they like and they often do even when not credible.

It's equally valid to say that climbing inflation and moronic economic policies are causing a lack of consumer confidence and a lack of growth.

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At 16 years of age my mates family sold their semi for £165k. Thought to myself no way I could afford that when I grew up.

Same semi up for sale £295k, if I sold our place the difference a few years back would have been £165k. So if I wanted to move into the village I would have to borrow the same amount I was looking in horror all those years ago. Not moving :D.

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At 16 years of age my mates family sold their semi for £165k. Thought to myself no way I could afford that when I grew up.

Same semi up for sale £295k, if I sold our place the difference a few years back would have been £165k. So if I wanted to move into the village I would have to borrow the same amount I was looking in horror all those years ago. Not moving :D.

Was looking for a 4 bed house in NR2 for up to 300k found one 330,000 they said no to offer, and there was no interest so they took it off the market.

Less than 3 years later similar houses are now going for 375-450,000 and quite fast.

You have to be blind not to see the issue with that in a flat economic environment.

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It's all ok, Forward Guidance on interest rates and asset purchases if there is any risk of house prices falling from today's lows. :angry:

BoE’s Bean surprised at investors’ reaction

Posted on: 27 Aug 2013 by Polly York

Speaking on the side of the US Federal Reserve’s Jackson Hole symposium yesterday Bank of England (BoE) Deputy Governor Charlie Bean gave short shrift to fears in some quarters of ‘over-heating’ in the UK housing market.

Regarding the first point Bean remarked that: ‘We wouldn’t want to see a house price boom emerging which would have potential problems further down the road (…) I can’t say we see signs of that at the moment. At this stage, you certainly wouldn’t say there’s a problem.’

In particular, he highlighted the fact that home prices were increasing in-line with general inflation, while adding that the monetary authority would like to see an increase in housing transactions.

House prices in July rose by 4.6% in the three months to July versus last year. That was the highest annual rate since August 2010, according to Lloyds Banking Group’s Halifax house price index.

The policy-maker also expressed surprise at investors’ response to the BoE’s ‘clear signal’ that it will not be raising interest rates anytime soon.

Precisely in that regard, in his speech at Jackson Hole, on the 24th, he noted the risk that markets might see tightening moves in one country as an indication that tightening may occur elsewhere.

‘It was such concerns that prompted the Monetary Policy Committee (MPC) to offer explicit forward guidance on the future path of interest rates and asset purchases,’ he went on to explain.

http://www.ifamagazine.com/news/boe-s-bean-surprised-at-investors-reaction-281679

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Yes, this message is not saying there is no house price boom, its saying don't worry rates are staying low.

Whilst they would bemoan a price boom publicly, in reality its what they are desperate for.

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http://www.bloomberg.com/news/2013-08-26/boe-s-bean-says-can-t-see-signs-of-housing-boom-emerging-in-u-k-.html

How nice he doesn't think we'd want to see house prices running at a unsustainable rate yet somehow house price increases running at inflation now would be!

Is this an official denial about a housing boom?

might be because we've already had one, and therefore prices are at "a permanently high plateau"

heard that before somewhere,can't think when :rolleyes:

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might be because we've already had one, and therefore prices are at "a permanently high plateau"

heard that before somewhere,can't think when :rolleyes:

I think they are if rates stay this low at least until the old start popping off.

I have looked at some commercial property 75% ltv really and mostly do not want to led more than 50% on anything risky. Your then looking at 3-3.5 over base and repayment over 25 years maybe 30 but those are the average offers.

This means that often you can now get 10%+ if you can get the tenants which is not easy.

Now if those "sensible" terms applied to residential 25% deposit 30 years repayment and 3.5 percent.....I think we are looking at 30% off right away. There is no coincidence in my area that FLS etc etc has just added 20% to the price of a house within a year. The agents tell you its the recovery but it cannot be it must just be increased LTV and reduced rates.

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I think they are if rates stay this low at least until the old start popping off.

I have looked at some commercial property 75% ltv really and mostly do not want to led more than 50% on anything risky. Your then looking at 3-3.5 over base and repayment over 25 years maybe 30 but those are the average offers.

This means that often you can now get 10%+ if you can get the tenants which is not easy.

Now if those "sensible" terms applied to residential 25% deposit 30 years repayment and 3.5 percent.....I think we are looking at 30% off right away. There is no coincidence in my area that FLS etc etc has just added 20% to the price of a house within a year. The agents tell you its the recovery but it cannot be it must just be increased LTV and reduced rates.

nope, the gameplan of the powers that be is going to be a very sharp ramp-up in interest rates to curb inflation(generated by the attack on syria which will spread to lebanon/jordan/saudi arabia/iraq/egypt and iran...which will push the oil price up hugely, and severaly hamper(or even temporarily halt) oil supply from the entire region.

the ensuing civil unrest being (rather attempted) to import draconian measures on the populace...and also the widespread looting/robbery being used for a period of time by the ptb to bump off the elderly and infirm.

that is precisely ho evil these people are...they are desperate to get/maintain control.

but there is bad news for them......they are known about and their plan will be successful only temporarily( about 6 months)........then they get their asses well and truly kicked by US/UK and canada.

bond markets are already in massive bubble terrirtory.....and this will surely be the blow-off.

I think people are beginning to realise that the credit-merchants/bankers have been behaving like crack cocaine dealers....and are getting rather angry.

the others that thought that "buying" a house(s) and trying to pay a mortgage consuming 40% of your salary at rock bottom base rates are in for a nasty shock.

the withdrawal symptoms are going to be very painful.

however, at the end of this we will almost definitely see some of the bigwigs literally swinging from lampposts...and those that thought they were safe picking fights and then running away to paraguay (or hiding in bunkers)etc once the real shooting starts will be hunted men.

...future political/corporate/banking practice and their practicioners will be much more limited, and much more humble...what is allowable practice and what is not forcibly defined from then on.

...at least in the northern hemishpere...which is going to go through some quite major political change too.

holy roman empire EU with 1 civic and 1 political despot not on the agenda.......it will be north-south split with the north divided into 4 governships.

Edited by oracle

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