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underpressuretobuy

House Price Growth At Seven Month High

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Just in case you haven't seen this:

Reuters Article

"LONDON (Reuters) - House price inflation picked up to a seven-month high in December but price gains will probably be modest this year, the nation's largest mortgage lender said on Monday.

HBOS said in its Halifax house price survey that prices rose by 1.0 percent last month, the same as in November, while the annual increase in the three months to December accelerated to 5.1 percent, the highest since May.

The data is the latest in a series of upbeat reports suggesting the housing market has achieved a soft landing and is beginning to firm, with a survey by rival mortgage lender Nationwide also showing faster house price growth last month.

Economists said these surveys, along with figures from the Bank of England which showed mortgage approvals hit a 1-1/2 year high in November, suggested house prices would continue to rise this year, albeit at a much weaker rate than in recent years.

"We continue to believe that while the recent overall firming in housing market activity will put a floor under house prices, it is unlikely to lead to sustained sharp rises in house prices any time soon," said Howard Archer at Global Insight.

Indeed, Halifax said that 2005 house price inflation at 5.1 percent was the weakest in a decade and well below the long-term average of eight percent.

Looking ahead, it predicted that subdued economic growth and high prices relative to incomes should cap house price inflation at just three percent this year.

LONDON BUCKS TREND

Against a backdrop of modest house price growth and signs that retail sales picked up going into Christmas, policymakers are likely to feel comfortable holding interest rates for now as they await news on the New Year pay round and spending data.

"Accelerating gains in house prices and retail sales volumes, the pick-up in services activity flagged by the December PMI and a solid CBI financial sector survey for Q4 all suggest that the likelihood of a near-term rate cut is falling," said Malcolm Barr, an economist at JP Morgan.

All 45 economists polled by Reuters last week expect the BoE to leave interest rates on hold at 4.5 percent at its policy meeting which concludes at midday on Thursday. However, most predict it will lower borrowing costs by June."

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I prefer this spin on the same news from SKY:

"House price growth was at its lowest level in 10 years, according to Halifax....."

http://www.sky.com/skynews/article/0,,30400-13491284,00.html

Lowest in 10 years--sounds like a nice record has just been set!

Some see this headline as bullish because it indicates a Spring Bounce, others see it as bearish because it points to a continuing trend. Its is interesting to note that, historically speaking, there has never been a plateau following a peak. The probability of a soft landing following the largest price spike in history seems remote to say the very least.

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Forget micky mouse stats. The CEO of Redrow one of the UK biggest house builders is quoted as saying

its the worst housing market for new and second hand resales in 30 years. Remember if you want or worse need to sell your property and cant at the price your marketing it at. There is only one thing you can do, that is reduce the price to one acceptable to the markect conditions. Over the next few months even the skewed, lies dam lies and statistics, trotted out by the VI's wil be heading south. This will realy chalenge their ability to spin.

Pablo Silver or Lead.

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yeaaayyy....!!! houses are back to normal. i suppose now i can go out and buy one at a fair price... weeeeeeee..!!! were saved, ect. now where did i put that deposit. i wish to use my own savings to prop up this bubble for a little bit longer.

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yeaaayyy....!!! houses are back to normal. i suppose now i can go out and buy one at a fair price... weeeeeeee..!!! were saved, ect. now where did i put that deposit. i wish to use my own savings to prop up this bubble for a little bit longer.

IwantYou.gif

yeaaayyy....!!! houses are back to normal. i suppose now i can go out and buy one at a fair price... weeeeeeee..!!! were saved, ect. now where did i put that deposit. i wish to use my own savings to prop up this bubble for a little bit longer.

golad.jpg

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haha..

wow. look what happened to dogbox when he said he wanted to STR..!!

no............. just wishful thinking on your part again, Fred! :lol:

and mine!

Edited by Michael

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  • 301 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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