Jump to content
House Price Crash Forum
Sign in to follow this  
TwentyOneEleven

House Prices Fall As Higher Rates Bite...

Recommended Posts

http://business.timesonline.co.uk/article/...2322642,00.html

Times 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?

Share this post


Link to post
Share on other sites

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!

Share this post


Link to post
Share on other sites

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'...

Share this post


Link to post
Share on other sites

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???'

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.