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Halifax - The Reason For The Housing Slow Down Is....

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http://www.bbc.co.uk/news/business-30723704

The Halifax is blaming poor growth in wages for a continuing slow-down in house prices.

The lender said that prices in 2014 rose by 7.8% - well down from the peak in July, when prices went up by 10.2% compared with a year earlier.

In the three months to December, the cost of a home went up by just 0.3% - marking five months of declining quarterly inflation.

It said that slow growth in real-terms wages was one of the main reasons.

Martin Ellis, the Halifax's chief economist, highlighted "earnings growth that has been consistently below consumer price inflation until very recently".

Average weekly earnings overtook inflation in September 2014, for the first time in five years.

Luckily it has nothing to do with prices exceeding wages.

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Slowdown? Ellis was on Today just yesterday (or was it Tuesday) saying everything's great. And @simonjacktoday lapped it up. God he is abominable

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There is no slowdown.

1/4 mile of me there are 34 properties inc SSTC.
Take SSTC away and there's 18..

Ok, some of them have been SSTC for about 8 months now...

And there's one that's on at 85k and offers over 70k so I assume that's a repo.

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I just phoned the estate agents dealing with out purchase, answered within 1 ring. :D

You could play a little game, pick random estate agents phone numbers from rightmove and see how many rings it takes. Could be a good market guage.

Edited by Wurzel Of Highbridge

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So what they're saying is we need wages to keep up with house prices, not the other way round?

When was the last time we had 10% wage growth? 1976? 1977?!

Is it a shock to anyone these guys went bust and need to be taxpayer subsidized?

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I just phoned the estate agents dealing with out purchase, answered within 1 ring. :D

You could play a little game, pick random estate agents phone numbers from rightmove and see how many rings it takes. Could be a good market guage.

The EAs in Foxtons East Dulwich looked like they were twiddling their thumbs (or playing candy crush) when I went past their office the other day. I even took a photo, as it cheered me up to see the place empty. Must be time for a few of them to be seeking alternative employment soon.

Edited by ticket2ride

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Slowdown? Ellis was on Today just yesterday (or was it Tuesday) saying everything's great. And @simonjacktoday lapped it up. God he is abominable

Isn't he just. Financial journalists should be subject to investment disclosure rules with provisions similar to insider trading legislation.

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Wages must rise to support housing market......

Who knew!

Trouble is that`s not happening and there`s no sight of it happening on the horizon ,,,think it`s something to do with this deflation stuff

When we had high inflation BOE was happy with that as long as it was not wage inflation this would cause them to wake up an do someting to counter it but all other inflation is ok

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When houses in our village come onto the market they sell quite quickly...................... or they did

Now there are 6 for sale, nothing selling some been stuck for 6 months or more and prices are reducing

Another 75% off would be fabulous

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Surprised the MSM isn't all over the 0.9% MoM rise (which is actually a big NSA fall and takes prices lower than any time since April 2014)

Is there a link to the Non-adjusted figures?

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According to the economic Zeitgeist he's got things the wrong way round. House prices should be forced to increase more and wages will rise to follow (one of these days).

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According to the economic Zeitgeist he's got things the wrong way round. House prices should be forced to increase more and wages will rise to follow (one of these days).

Only bankers' wages. Everybody else is worse off. Steve Keen's Minsky model has been used to demonstrate this relationship explicitly.

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