TwentyOneEleven Posted August 21, 2006 Share Posted August 21, 2006 http://business.timesonline.co.uk/article/...2322642,00.htmlTimes Online August 21, 2006 House prices fall as higher rates bite By Clare Francis The Bank of England’s decision to raise interest rates earlier this month is already having an impact on the housing market, according to the latest survey of asking prices. Rightmove, the property website, reported that prices are down 1.6 per cent in August indicating that the mini boom in house prices could already be over. [snip] The apparent speed with which this month’s rate rise seems to have affected property prices will cause nervousness about the possibility of further increases later in the year. Some economists think the Bank of England will put rates up again in November and some believe there could be a further quarter point rise next year, which would take base rate to 5.25 per cent. If this happens the housing market could stagnate... One rate hike and two weeks later articles like this are starting to appear ... what will we see if there's another later this year and one early next year? Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted August 21, 2006 Share Posted August 21, 2006 Asking prices again. This doesn't mean jack to selling prices. Maybe the difference between asking an selling as shrunk. Still at least its something for joe public to mull over! Quote Link to comment Share on other sites More sharing options...
TwentyOneEleven Posted August 21, 2006 Author Share Posted August 21, 2006 Asking prices again. This doesn't mean jack to selling prices. Maybe the difference between asking an selling as shrunk. Still at least its something for joe public to mull over! Maybe so, but surely if sellers are seen to be reducing their 'asking' prices, buyers will start to reduce their 'offers'? And if people with similar houses for sale on the same street start to undercut each other with their asking prices? 'Tick' follows 'tock' follows 'tick'... Quote Link to comment Share on other sites More sharing options...
adamUK Posted August 21, 2006 Share Posted August 21, 2006 One rate hike and two weeks later articles like this are starting to appear ... what will we see if there's another later this year and one early next year? I think the rate hike has absolutely nothing to do with the current spin. The cynic in me thinks that these press releases are not for the great unwashed like us but to try to influence Merv and the gang.... 'Now look here, Merv, we know you have control of interest rates but an increase would ruin us VIs... so here's some made-up data for you... now be a good boy and cut interest rates would you???' Quote Link to comment Share on other sites More sharing options...
simon99 Posted August 21, 2006 Share Posted August 21, 2006 this is hardly surprising given last months ludicrously big rise. Quote Link to comment Share on other sites More sharing options...
BandWagon Posted August 21, 2006 Share Posted August 21, 2006 Just wait for the next rate rise to arrive. Then the fun is really going to start. Quote Link to comment Share on other sites More sharing options...
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