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IMupNorth

Inflation And The Crash

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Curiously in my area - and by your moniker, yours too, IMUpN - asking prices fell by 5% last month according to Rightmove. Yes, you read that correctly. By 5% in one month.

I actually track asking prices quite closely in my area and its fair to say I didn't see a fall in asking prices in the past month - they seem to be pretty flat and there are practically no reductions in asking price going on either. My area by the way is between Leeds and York.

Personally, I'm inclined to favour the ODPM stats as the nearest to reality. Although they are a couple of months behind the others. For the moment, I'm taking notice of what they say - and on the figures just released there was a fall in prices in Oct - whilst, all the others Rightmove, Halifax etc said they went upwards.

Can't see a crash happening though.

Bye for now.

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http://investing.reuters.co.uk/investing/f...-53_ONS001653:1

Looks like the only thing crashing downwards round here is inflation and in due course, interest rates.

;)

Bye bye, Crash.

Yep, looks like IRs are not going up in the near future. The news doesn't paint a very healthy picture of the UK economy does it? Therefore, I also can't see house prices rising in the near future.

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Sickening X2 :(

Plan B anyone?

What are you talking about. Forget IR's for the moment. Inflation would destroy our deposits and get everyone out of hoc. Effectively this 10 year debt binge would be written off - and all our self discipline will be have been for duck!

Deflation is what we want to see. The debt burden is large enough now and is creating a spiralling contraction of money supply.

Who is going to buy this hugely expensive housing stock tomorrow eh ? Well, the next generation (and much of this one) are already bankrupt (thanks in part to the education scandal)

Inflation BAD, BAD, BAD. Deflation GOOD.

Regards.

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I agree with you re inflation and deflation.

The debt issue was always more likely to cause a massive, but very slow, realignment of house prices.

Inflation will cause a large, but relatively quick, realignment of prices.

The BofE fear deflation more than they fear inflation - rates will be cut next year. Inflationary pressures were always considered to be temporary so long as 2nd round effects were nullified.

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Huge increases in IVAs reported recently. I don't think this is due to people's inability to pay. I think its due to people's absolute boredom and frustration at the debt levels and repayments. The debt won't melt away like it did in the 70s and 80s... people will either have to live with it for a decade or more, or ditch it. I've said it before - very low inflation, stagflation and finally deflation are all silent killers of the housing market.

The HPC will be relegated to a slow decline... just like Japan.

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  • 333 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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