Realistbear Posted June 11, 2007 Share Posted June 11, 2007 (edited) http://business.timesonline.co.uk/tol/busi...icle1915552.ece From Times Online June 11, 2007 Government figures lag the reality Andrew Ellson explains why we should be sceptical of today's data showing renewed strength in the housing market The Government’s latest figures on house prices appear to suggest that the market is actually accelerating rather than cooling off. This is in contrast to expert predictions and the most recent surveys from the Halifax and Nationwide both of which indicate that the pace of house price growth is slowing....../ But the reality is that house price growth is now slowing and we can expect the Government’s survey to reflect this over the coming months...../ So today’s Government figures add little new to the debate about what is happening to the housing market. It is very unlikely that house price growth has actually started accelerating again. In fact, outside of London, price growth is likely to stall completely as the four quarter-point increases in interest rates of the last year finally take affect. The same thing happened in 2004 when the Bank of England last raised rates. The BoE say new mortgage applications are dropping sharply which does add credence to the Time's view. Edited June 11, 2007 by Realistbear Quote Link to comment Share on other sites More sharing options...
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