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S K Y: House Prices To "soar By 25%" But Data Says Otherwise


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HOLA441

http://uk.biz.yahoo.com/28072008/140/house...es-soar-25.html

House Prices 'Will Soar by 25%'
By Sky News
| | |
House prices fell for the 10th month in a row during July
- but there are claims the property market will bounce back stronge than ever.
Homes in England and Wales
lost a further 1.2% of their value during the past four weeks
, new figures show.
The average cost of a home has now
slumped by 4.4%
during the past year.
That is the
fastest annual rate of decline
since property intelligence group Hometrack first launched its index in 2001.
But separate research carried out for the National Housing Federation predicted that the house prices in England will rise by 25% during the coming five years.
Hometrack reported price falls in 65 postcode districts of England and Wales during July, adding the average home now cost just £168,500, the same as in October 2006.
It said
demand from potential buyers had continued to fall
during the month, with the number of
people registering with estate agents slumping
by 6.4%, following a drop of 5.7% in June and one of 6.7% in May.
At the same time the
number of properties on the market rose
by 1.1%, while the average time it takes to sell a home further increased to 11 weeks.
Homeowners are now getting an average of just 90.9% of their asking price - well down on levels of 95.1% 12 months ago.
East Anglia saw the
biggest drop in prices
during the month, with the average cost of a home falling by 1.4%, while slides of 1.3% were recorded in Greater London, the South East, South West and East Midlands.
Despite the gloomy figures, National Housing Federation (NHF) research claimed the current market downturn would be over by 2010, leading to a return of rising prices.
It predicts the average home in England will cost £274,700 by 2013, with prices rising by 5.2% during 2011 and by more than 9% a year in both 2012 and 2013.
In the short-term, it expects prices to fall by a further 2.1% in 2009, before beginning to increase in 2010, edging ahead by 1.3%.
The research, by Oxford Economics, showed despite the current crisis, demand for property is still growing, while the supply of new housing is falling.

Despite evidence to the contrary house prices will soar by 25%? Likewise, despite the recent local election and by-election results Gordon Brown is set to win the next GE by a comfortable margin.

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HOLA442
Guest DissipatedYouthIsValuable

When salaries start soaring, I'll believe it.

Otherwise the best long term defence against abusive tyranny against the greater populace is to drive down house prices as far as possible, do away with the need for social housing altogether.

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HOLA443
3
HOLA444
When salaries start soaring, I'll believe it.

Otherwise the best long term defence against abusive tyranny against the greater populace is to drive down house prices as far as possible, do away with the need for social housing altogether.

Tories tried that but it didn't stop another speclative boom in ex-council houses. What we need to do is to regulate LIAR LOANS so that the market governs price which will always be in direct proportion to earnings. With "miracle" economics the ordinary laws of supply and demand are distorted by artificially stimulating demand through imprudent lending patterns. Reign in credit to a reasonable relationship to earnings and eliminate LIAR LOANS and away goes boom and bust in House prices.

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HOLA445
http://uk.biz.yahoo.com/28072008/140/house...es-soar-25.html
House Prices 'Will Soar by 25%'
By Sky News
| | |
House prices fell for the 10th month in a row during July
- but there are claims the property market will bounce back stronge than ever.
Homes in England and Wales
lost a further 1.2% of their value during the past four weeks
, new figures show.
The average cost of a home has now
slumped by 4.4%
during the past year.
That is the
fastest annual rate of decline
since property intelligence group Hometrack first launched its index in 2001.
But separate research carried out for the National Housing Federation predicted that the house prices in England will rise by 25% during the coming five years.
Hometrack reported price falls in 65 postcode districts of England and Wales during July, adding the average home now cost just £168,500, the same as in October 2006.
It said
demand from potential buyers had continued to fall
during the month, with the number of
people registering with estate agents slumping
by 6.4%, following a drop of 5.7% in June and one of 6.7% in May.
At the same time the
number of properties on the market rose
by 1.1%, while the average time it takes to sell a home further increased to 11 weeks.
Homeowners are now getting an average of just 90.9% of their asking price - well down on levels of 95.1% 12 months ago.
The research
, by Oxford Economics, showed despite the current crisis, demand for property is still growing, while the supply of new housing is falling.

%? Likewise, despite the recent local election and by-election results Gordon Brown is set to win the next GE by a comfortable margin.

Ha Ha, they call that research?

Maybe they should publish the raw data. :lol:

Demand is growing by minus6% per month in the strongest months of the year.

Full marks for trying to deceive the public just to save their businesses though.

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HOLA446

Could happen with a 50-60% decline in the value of the pound. That would mask the remaining falls and provide for a 25% gain in nominal terms.

If peak oil is really here, then our trade deficit will look like a train wreck in a few years. This could precipitate such a sterling crash. Basically, even with a current account deficit at 5% of GDP as we have now, sterling would have to devalue by 50% to bring that down to zero. Mind you, we've never balanced the books in the UK...

Edited by AvidFan
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HOLA447

'it really infuriates me when newspapers write stuff like "seperate research indicates" with absolutely zero figures or data to back it up.

A similar article last year could have at least plastered the shiny HPI graph all over the front page, but at this point, there's nothing.

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HOLA448

Are the NHF (who represent housing associations) trying drum up more money for housing associations, highlight the shortage of housing or celebrate rising prices? I doubt it's the last one, but whatever their intention, the HPI addicts will always look at this as another way to keep their money spinner going.

Edited by bobed
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HOLA449
http://uk.biz.yahoo.com/28072008/140/house...es-soar-25.html
House Prices 'Will Soar by 25%'
By Sky News
| | |
House prices fell for the 10th month in a row during July
- but there are claims the property market will bounce back stronge than ever.
Homes in England and Wales
lost a further 1.2% of their value during the past four weeks
, new figures show.
The average cost of a home has now
slumped by 4.4%
during the past year.
That is the
fastest annual rate of decline
since property intelligence group Hometrack first launched its index in 2001.
But separate research carried out for the National Housing Federation predicted that the house prices in England will rise by 25% during the coming five years.
Hometrack reported price falls in 65 postcode districts of England and Wales during July, adding the average home now cost just £168,500, the same as in October 2006.
It said
demand from potential buyers had continued to fall
during the month, with the number of
people registering with estate agents slumping
by 6.4%, following a drop of 5.7% in June and one of 6.7% in May.
At the same time the
number of properties on the market rose
by 1.1%, while the average time it takes to sell a home further increased to 11 weeks.
Homeowners are now getting an average of just 90.9% of their asking price - well down on levels of 95.1% 12 months ago.
East Anglia saw the
biggest drop in prices
during the month, with the average cost of a home falling by 1.4%, while slides of 1.3% were recorded in Greater London, the South East, South West and East Midlands.
Despite the gloomy figures, National Housing Federation (NHF) research claimed the current market downturn would be over by 2010, leading to a return of rising prices.
It predicts the average home in England will cost £274,700 by 2013, with prices rising by 5.2% during 2011 and by more than 9% a year in both 2012 and 2013.
In the short-term, it expects prices to fall by a further 2.1% in 2009, before beginning to increase in 2010, edging ahead by 1.3%.
The research, by Oxford Economics, showed despite the current crisis, demand for property is still growing, while the supply of new housing is falling.

Despite evidence to the contrary house prices will soar by 25%? Likewise, despite the recent local election and by-election results Gordon Brown is set to win the next GE by a comfortable margin.

It's enough to drive a man to chocolate hob-nobs.

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