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Realistbear

Telegraph: Much Evidence To Show Market Must Crash Now

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http://www.telegraph.co.uk/property/main.j...13/ixpmain.html

Word on the street: baffled by the boom

(Filed: 13/05/2006)

In the first of a series of incisive weekly columns, the Daily Telegraph Economics Editor offers expert inside knowledge of the housing market

Are we in the midst of another housing boom? If you've read all the stories about falling house-price inflation over the past year, you might consider such a question ridiculous. Recent figures suggest otherwise. The Halifax said last week that house prices rose by 2 per cent in April - the highest monthly increase for two years.
It is clear that houses are still overvalued. This means that, at some point, either prices must fall or the rate at which they increase must slow to below the rate of wage inflation - about 4.5 per cent.
The Bank of England, which is aiming for the latter, looks likely to raise interest rates later this year, hoping this will bring prices back under control.
The problem is that this is not the way that markets usually behave.
For all Gordon Brown's promises to bring to an end the traditional boom and bust of the economy, there is much evidence to suggest that markets need to crash now and then to remind investors of the risks associated with buying into them.
Let us hope, then, that we have all become wiser and more circumspect investors since the early 1990s, for this is something no statistics can prove.

Factor in the collapse of confidence in the stock market, overpriced commoditities, Japan intiating an IR surge, political instability, rising unemployment and debt, an overvalued and uncompetitive pound and it would seem the time is right for a fall.

Edited by Realistbear

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In the first of a series of incisive weekly columns, the Daily Telegraph Economics Editor offers expert inside knowledge of the housing market

Seems the press are turning more bearish. At last the sheeple will read something other than VI property ramping in the likes of the Daily Express! :)

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In the first of a series of incisive weekly columns, the Daily Telegraph Economics Editor offers expert inside knowledge of the housing market

Seems the press are turning more bearish. At last the sheeple will read something other than VI property ramping in the likes of the Daily Express! :)

nah, turncoats, the lot of 'em

wait till Rightmove reports on monday and watch them all jump on the "prices up and away" bandwagon again !

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nah, turncoats, the lot of 'em

wait till Rightmove reports on monday and watch them all jump on the "prices up and away" bandwagon again !

WHat will Rightmove claim as the chnage in "asking prices?" Up 3.5%?* :lol:

*Factoring in a few 6 million pound studio flats and the odd job lot of run down BTLs for 18 million etc.

Edited by Realistbear

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Anyone else find this hilarious:

"In the first of a series of incisive weekly columns, the Daily Telegraph Economics Editor offers expert inside knowledge of the housing market

Are we in the midst of another housing boom?"

Ooh, ooh, are we, are we? Tell us, tell us, Mr Journo - we don't know!! :blink:

Yes, incisive, hard-hitting, ground-breaking stuff - grr, watch out people, you're in for a dose of TERUTH!!

Next week: Do bears actually defecate in the woods?

To be followed by our muck-raking, no-holds-barred investigation into the rumours that the pope is catholic.

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This is the bit I like

For all Gordon Brown's promises to bring to an end the traditional boom and bust of the economy, there is much evidence to suggest that markets need to crash now and then to remind investors of the risks associated with buying into them.

For those who daid they'd be a "Gradual slowdown" there obviously hasn't - HPI has continued its Spring bounce. We are now due for a bloody almighty CRASH

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"Yes, incisive, hard-hitting, ground-breaking stuff" NOT

which is why i look Builders Shares for the real up-to-date story, without spin

US builder's site--some VI ramping but also some reality articles:

http://www.builderonline.com/

E.G.:

http://www.builderonline.com/industry-news...rticleID=301774

Foreclosures Spike in First Quarter of 2006
Source: The Atlanta Journal and Constitution
Publication date: 2006-05-12

http://www.builderonline.com/industry-news...rticleID=301809

'For Sale' Signs Outpacing Sold Homes: Prices Still Higher
Source: The Milwaukee Journal Sentinel
Publication date: 2006-05-12

Some of the articles make delightful Saturday afternoon reading. Pity there is not more honesty in the UK.

Edited by Realistbear

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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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