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Realistbear

Wonderfully Bearish Article In Birmingham Post

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http://icbirmingham.icnetwork.co.uk/birmin...-name_page.html

The Birmingham Post

Housing market weakens - BankJun 1 2006

By Nevill Boyd Maunsell, Economics Editor

Signs that the housing market may be coming off the boil have strengthened after the Bank of England reported a sharp drop in the number of mortgages approved in April, while Nationwide said house prices rose only modestly for a second month in May.
"Even arch-hawk Mervyn King (governor of the Bank of England) cautions that continued strong house price growth should not be taken for granted given the level of house prices relative to incomes."

Bottom line: The Press and Mervyn are calling an end to HPI. :)

Edited by Realistbear

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More bearishness from various sources:

http://www.qck.com/19441.html?searchsite=news-now

Experts predict house price dip, but no crash

01/06/2006

New data from the Bank of England (BoE) "suggests that housing market activity may be starting to lose some momentum", according to a chief economist.
Howard Archer, from consultancy firm Global Insight, says that there could be a downturn in the market after BoE figures indicate mortgage approvals were down in April.
The Royal Institution of Chartered Surveyors (Rics), also predict "modest slowdown in the housing market", according to their chief economist, Milan Khatri.
Mr Khatri indicated "
that new enquiries from would-be buyers rose in April at the slowest pace in almost a year
".
He said: "Some easing in mortgage activity levels is not surprising as the boost to confidence from the interest rate cut last August is fading, while affordability conditions for prospective buyers remain difficult, particularly for first-time buyers."

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THE MEDIA is now turning Bearish,

and this will help to reinforce the slowdown.

Looks like those Builders gave a nice early warning - once again

The question is this:

Are we witnessing a new market which acts like a well crafted pressure valve, with periods of gentle release (say summer 04 - summer 05) and then modest pressure increases (Autumn 05 - spring 06) followed by another gentle release and so on?

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The question is this:

Are we witnessing a new market which acts like a well crafted pressure valve, with periods of gentle release (say summer 04 - summer 05) and then modest pressure increases (Autumn 05 - spring 06) followed by another gentle release and so on?

We are dealing with sheeple not pragmatic economists. They panic when they see their equity go negative and job losses creates the stench of fear in their nostrils. That is what fuels boom and bust economies like the UK. Gordon Brown has created such an enormous debt mountain that the fear factor is very high and will cause many to act irrationally--panic selling and walking away from houses will repeat again as it did in the 90's.

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The question is this:

Are we witnessing a new market which acts like a well crafted pressure valve, with periods of gentle release (say summer 04 - summer 05) and then modest pressure increases (Autumn 05 - spring 06) followed by another gentle release and so on?

I don't think so. The next few months will be critical.

If we see a few months of increasingly negative press, coupled with a couple of base rate rises (not that these actually make much difference, but the muppets care about them), we will be looking at some nominal falls later this year.

This mini-boom has been spun by the media and VI's all on the promise of monetary policy loosening. In fact, these morons have been chanting this utter dross and ignoring the fact that financing costs have been steadily increasing the whole time.

The muppets will be feeling nervous and blame the media, who will lose credibility for more spin. Also, it seems the new labour machine is starting to smoke heavily and they are seemingly starting to lose a little of the media grip they had.

One or two more scandals, a war, or anything and the media will turn very against this government and stories will be spun from an increasingly negative angle, which will compound the dropping sentiment from Joe Muppet.

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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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