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Realistbear

U K Headed Toward Bottom Of League For H P I

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http://uk.us.biz.yahoo.com/ft/060813/fto08...33885.html?.v=1

FT.com

Property prices leap in eastern Europe

Sunday August 13, 12:55 pm ET
By Steve Johnson in London
Property prices are rising faster in the buoyant economies of eastern Europe than anywhere else in the world, according to a global index compiled by Knight Frank, the UK estate agency.
However, Japan continues to battle against property price deflation of 2.7 per cent, even as its central bank has started to raise interest rates. Prices are also falling in Hong Kong as a powerful boom has turned to bust.
Overall, the index shows global property price inflation running at 8.5 per cent in the year to June,
below the 12.3 per cent in the year to June 2005 but sharper than the 6.1 per cent inflation rate recorded in March.
The overall picture from the survey is one of moderating growth, with house price inflation in the US falling from 14.1 per cent a year earlier to 9.4 per cent, that of France slipping from 15.3 to 9.4 per cent, China from 8 to 5.8 per cent, Italy from 11.2 to 5.2 per cent and the
UK from 6.1 to 4.8 per cent.
"The most notable trend is that house price growth is continuing to slow across the globe," said Liam Bailey, head of residential research at Knight Frank. "Many commentators have been concerned that the boom in
house prices which has been seen in many countries would end in tears
. However, in these markets price growth has begun to slow."

Poor E European countries last to get onto the greatest pyramid scheme the world has ever seen. :o

UK now among the slowest markets in the world with de-acceleration from double digits down to a comparitive screeching halt at 4.8%. We are now at about half the global average which suggests the madness is well and truly over :o

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It also suggests that investors are taking their money away to more profitable areas ie E Europe! That would take away the last support for the UK housing market :)

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How about....?

"U K Headed Toward Top Of League For Real Inflation,

Rising more dramatic here than in other parts of world and outstripping HPI"

Edited by dnd

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How about....?

"U K Headed Toward Top Of League For Real Inflation,

Rising more dramatic here than in other parts of world and outstripping HPI"

Nice combo brewing: slowest HPI coupled with fastest CPI. The dreaded stagflation monster emerges from the HPI-MEW swamp to devour all in its path... :o

BTW, Gordon is keeping his head below the parapets recently. Not a dicky bird coming from him.

CPI out tomorrow. What's the betting they will conjur up a decrease from the recent mythical 2.5%? THEN we will see Gordon emerging from No. 11 beaming and swaggering over to the gathered press to reassure the sheeple that the Miracle lives.

Edited by Realistbear

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Looks like a few UK regions are already in crash mode if you take inflation into account:

http://www.housefund.co.uk/2006/08/house-p...ts-to-slow.html

The UK house price inflation rate fell from 5.6 per cent in May 2006 to 5.2 per cent in June 2006 according to official figures from the Department for Communities and Local Government (DCLG)......./
Inflation rates were lower in other parts of England, in North West (4.9%), West Midlands (4.4%) and South East (4.3%).
Inflation rates were lowest in the East (2.8%) and East Midlands (1.9%)
.

Assuming inflation is above 2.9%. :)

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CPI out tomorrow. What's the betting they will conjur up a decrease from the recent mythical 2.5%? THEN we will see Gordon emerging from No. 11 beaming and swaggering over to the gathered press to reassure the sheeple that the Miracle lives.

The CPI will now ONLY track iPod prices and is to be forthwith know as the IPI

:lol:

Edited by dnd

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The CPI will now ONLY track iPod prices and is to be forthwith know as the IPI

:lol:

I don't get these conspiracy theories. If GB was fiddling things like you say, why did IRs rise 5 times between late 2003 and 2005, and why did they rise last month? You all accuse the MPC/GB/ONS of fiddling when it doesn't go your way, and pretty much congratulate them when it does!

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I don't get these conspiracy theories. If GB was fiddling things like you say, why did IRs rise 5 times between late 2003 and 2005, and why did they rise last month? You all accuse the MPC/GB/ONS of fiddling when it doesn't go your way, and pretty much congratulate them when it does!

(copied)

Last months IR rise is part of a bluff - there is no way they are going to raise IR to levels that'll crash the housing market

Reducing consumer demand by surpessing wage inflation through immigration hasn't worked - people were still borrowing to bridge the gap between their static wages and rising prices

So he's nudging up IR to scare people into stopping borrowing/spending - problem with that is that they've let real inflation climb so high for so long that people are now borrowing to LIVE

Personally, I think another couple of IR rises and their bluff will be called as people continue to borrow/spend - they'll simply back off and redefine/hide 'inflation' again...

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(copied)

Last months IR rise is part of a bluff - there is no way they are going to raise IR to levels that'll crash the housing market

why should they, it's not part of their brief!

So he's nudging up IR to scare people into stopping borrowing/spending - problem with that is that they've let real inflation climb so high for so long that people are now borrowing to LIVE

Indeed. His best hope is that the fear of higher IRs will be enough to change spending habits, such that he won't need to actually increase them. This would be his ideal scenario.

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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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