neon tetra Posted May 2, 2019 Share Posted May 2, 2019 In Carney’s forward guidance today, this: What is the outlook for the housing market? The Bank expects a fall in UK house prices this year, with property values predicted to fall by 1.25%. It says some households are likely to have delayed moving house because of Brexit uncertainty. It also says that affordability is also slowing the market, particularly in areas where prices are high, such as London and the South East. Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted May 2, 2019 Share Posted May 2, 2019 1.25% - so precise of them, again trying to give the impression that they can predict and control the falls. Still, if they're now admitting they expect a fall this year, that indicates prices are already falling and they've realised they can't hide the fact anymore. Quote Link to comment Share on other sites More sharing options...
Spindler Posted May 2, 2019 Share Posted May 2, 2019 (edited) 36 minutes ago, dpg50000 said: 1.25% - so precise of them, again trying to give the impression that they can predict and control the falls. Still, if they're now admitting they expect a fall this year, that indicates prices are already falling and they've realised they can't hide the fact anymore. 1.25 that is the equivalent of parting a gnats hairline with a rifle bullet at 100 yards ! Edited May 2, 2019 by Spindler Quote Link to comment Share on other sites More sharing options...
Spindler Posted May 2, 2019 Share Posted May 2, 2019 1.25....It just looks like a so stupid figure...... so I guess they think we are all stupid after all.... But acceptance of downwards trajectory is that the equivalent of them dropping breadcrumbs so they can point to the trail where they mentioned falls......? Quote Link to comment Share on other sites More sharing options...
rollover Posted May 2, 2019 Share Posted May 2, 2019 31 minutes ago, Spindler said: 1.25....It just looks like a so stupid figure...... so I guess they think we are all stupid after all.... But acceptance of downwards trajectory is that the equivalent of them dropping breadcrumbs so they can point to the trail where they mentioned falls......? I was thinking the same, he can't get the figure right. But more important is the message: Interest rate increases could be "more frequent" than expected if the economy performs as the Bank of England is expecting and property values predicted to fall by 1.25% Quote Link to comment Share on other sites More sharing options...
Staffsknot Posted May 2, 2019 Share Posted May 2, 2019 Sounds like he is trying to talk down ideas of a large fall. Would be intrigued to know how they reached this figure as seems as finger in the air as Nationwide or Halifax. Crucially though it is in all the papers and that might be good enough to push a few reductions Quote Link to comment Share on other sites More sharing options...
bear.getting.old Posted May 2, 2019 Share Posted May 2, 2019 The Fing bloke hasn't a sodding clue. "Interest rate increases could be "more frequent" than expected if the economy performs as the Bank of England is expecting" Talk about contradicting yourself! Quote Link to comment Share on other sites More sharing options...
zugzwang Posted May 2, 2019 Share Posted May 2, 2019 4 hours ago, dpg50000 said: 1.25% - so precise of them, again trying to give the impression that they can predict and control the falls. Still, if they're now admitting they expect a fall this year, that indicates prices are already falling and they've realised they can't hide the fact anymore. Three significant figures! Comedy gold. Quote Link to comment Share on other sites More sharing options...
longgone Posted May 2, 2019 Share Posted May 2, 2019 surely 12.5% this year and for the next 5 years no ?? That pesky decimal point. Quote Link to comment Share on other sites More sharing options...
Spindler Posted May 3, 2019 Share Posted May 3, 2019 when buying and selling does anyone put in an offer 1.25% below asking ? Would any seller(i would) be perplexed at receiving such an offer ? You'd know the buyer was an idiot just from that... Quote Link to comment Share on other sites More sharing options...
hurlerontheditch Posted May 3, 2019 Share Posted May 3, 2019 8 hours ago, longgone said: surely 12.5% this year and for the next 5 years no ?? That pesky decimal point. that wont happen. too many people in power with too much skin in the game to let that happen. Quote Link to comment Share on other sites More sharing options...
longgone Posted May 3, 2019 Share Posted May 3, 2019 5 hours ago, hurlerontheditch said: that wont happen. too many people in power with too much skin in the game to let that happen. when you cut yourself wound turns to scab then scab turns to new skin ? Quote Link to comment Share on other sites More sharing options...
scottbeard Posted May 3, 2019 Share Posted May 3, 2019 20 hours ago, dpg50000 said: 1.25% - so precise of them, again trying to give the impression that they can predict and control the falls. Still, if they're now admitting they expect a fall this year, that indicates prices are already falling and they've realised they can't hide the fact anymore. 5 hours ago, Spindler said: when buying and selling does anyone put in an offer 1.25% below asking ? Probably the median output of a stochastic model, rounded to the nearest quarter of a percent. An expected value of -1.25% doesn't actually mean you genuinely "expect" (in everyday language) exactly that number, "expected value" in statistics just means the sum of all possible outcomes multiplied by the probability of that outcome. A fall of -1.25% wouldn't occur because everyone suddenly offers (or ends up paying) precisely £197,500 on every £200,000 asking price. It would occur when a large number of increases and falls all averaged out end up averaging out to that level. It's like saying the (statistically) expected temperature of an August day is 21C - no-one would "expect" every day to be exactly that, it's just a forward looking average value. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted May 3, 2019 Share Posted May 3, 2019 They dont want falls. So admitting a fall is a big deal. 1.25% I wager will feel like circa 5% out there in the real world. Quote Link to comment Share on other sites More sharing options...
Spindler Posted May 3, 2019 Share Posted May 3, 2019 2 hours ago, scottbeard said: Probably the median output of a stochastic model, rounded to the nearest quarter of a percent. An expected value of -1.25% doesn't actually mean you genuinely "expect" (in everyday language) exactly that number, "expected value" in statistics just means the sum of all possible outcomes multiplied by the probability of that outcome. A fall of -1.25% wouldn't occur because everyone suddenly offers (or ends up paying) precisely £197,500 on every £200,000 asking price. It would occur when a large number of increases and falls all averaged out end up averaging out to that level. It's like saying the (statistically) expected temperature of an August day is 21C - no-one would "expect" every day to be exactly that, it's just a forward looking average value. so a load of old baloney then really ? Sounds lke something Mr Logic from Viz would cough up Quote Link to comment Share on other sites More sharing options...
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