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Easter Boom Or Suckers Market?

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Surprising article [for Sunday Times] peppered with pretty bearish comments

Easter boom beckons - Are localised price rises the start of a steady upward trend or a short-lived spike?

This weekend marks the real start of the spring househunting season — but are eager buyers about to fall victim to what some property insiders are calling “a suckers’ market”?
“There is a view that we’re in a suckers’ market. That is, that these signs of growth may not be sustainable. This is not our central prediction, and we’re not saying there will definitely be price falls, but they are a possibility.”

Barnes is not the only property analyst who believes we may already be at the top of the latest property mini-boom.

Jim Cunningham, chief economist at the Council of Mortgage Lenders, agrees the market in the southeast of England may be fuelled by unjustified optimism.

The most recent testing of the market by the Royal Institution of Chartered Surveyors (Rics) tends to lend weight to the “sucker” theory. It says wider economic issues will deter price rises in general and may lead to small falls.

And the articles' conclusion?

Richard Donnell, who uses data from 3,500 estate agents’ offices to compile the Hometrack house-price index.......says this indicates that even with a short-term price surge in some areas, there is now no more room for price growth in the market as a whole — possibly for the next year or more — because so many areas have become unaffordable.

His view is simple: “The housing market is fully valued.”

Edited by jp1

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His view is simple: “The housing market is fully valued
.”

With rising unemployment and IR what may be fully valued today will be over valued tomorrow. The all important market confidence factors must also be considered and with today's good news from RICs it seems that the sellers are outnumbering the buyers.

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  • 302 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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