Sunday, Aug 06, 2006

The softening up process begins

Daily Telegraph: Nine out of 10 of us believe our home will fare better than the rest of the market over the next year. Smug indeed, and plain silly to boot.

Economics is mostly about perceptions and expectations. One tiny interest rate change and everyone is suddenly talking about things going pear-shaped. Although his contract probably requires him to end on a more positive note, by that time his message is clear - be prepared for your home to fall in value, whoever you are, wherever you are. \r\n\r\nGreat to see the grand opera of life following the tried and tested format.

Posted by bidin'matime @ 08:55 AM (428 views)
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8 Comments

1. The Bald Man said...

Good articel. All my friends say the same thing. Their houses will never go down in value and will outferform the market. People are still entering the buy to lose market because their investment will grow in value.

Sunday, August 6, 2006 11:13AM Report Comment
 

2. paul said...

This is a month old, bidin.

Sunday, August 6, 2006 11:20AM Report Comment
 

3. Bigwave said...

Interesting piece. It got across the ostrich mentality which always accompanies a bubble market shortly before it goes "pop". I disagree with the author's conclusion however (that there will not be a crash) because the overall debt burden is so huge that it is bound to end in tears. Just look what's happening in Australia: interest rates are historically low but just a little nudge upwards in the interest rates and the overvalued house market takes a tumble.

Sunday, August 6, 2006 05:48PM Report Comment
 

4. bidin'matime said...

Not so, Paul. Yesterday's Telegraph.

Sunday, August 6, 2006 06:57PM Report Comment
 

5. sebastian said...

We definately read something similar a month back, or was that something like 9 out of 10 of homeowners think their area is up and coming?

Monday, August 7, 2006 08:15AM Report Comment
 

6. inbreda said...

You're right Sebastian - there was a very similar piece from an equally lazy journalist a month or so ago.

However, the title is "...over the next year" so it is still relevant now - perhaps more so due to the changing sentiment currently. Always good to revisit these things.

Monday, August 7, 2006 09:12AM Report Comment
 

7. denzil said...

Those Journos are lazy. This is about the third time I've read this same piece.
Great read though none the less.

Monday, August 7, 2006 09:30AM Report Comment
 

8. Bfskinner said...

interesting quote from this article

"I'm still not convinced there will be a crash. It would take a few more interest-rate hikes and another spike in unemployment - neither of which look particularly likely right now."

he is talking about the UK isnt he?

BFS

Tuesday, August 8, 2006 11:30AM Report Comment
 

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