Monday, November 13, 2006

Housing market surges toward collapse.

House Prices Surge Toward A 'Tipping Point'

Asking prices for UK homes jumped up by 1.3% in November, according to the latest Asking Price Index report from Home.co.uk. This further rise in the national average means that house prices have increased for three months in succession and is a sure sign that sellers' confidence is growing. A three month rally in asking prices signals an up-lift in market sentiment and a new upward trend, but the timing couldn't be worse.

Posted by tinecu @ 10:53 AM (421 views)
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6 thoughts on “Housing market surges toward collapse.

  • george monsoon says:

    hmm.. .. How can such a well informed experienced group of bankers ( ! ) on the MPC make such a monumental mistake with the interest rates, unless the inflation increase has been engineered?

    I read the whole article posted on the weekend blog, regarding the Federal reserve. One portion of the article pointed at inflation as being a revenue generator for the government…

    Does anyone have any comments?

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  • George

    If you can get hold of the acclaimed documentary ‘The Money Masters’ (I think part of it is on Google Video) you may get the bigger picture.

    Regards

    Milly

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  • Dohousescrashinthewoods says:

    These days nothing would entirely surprise me.

    It’s an interesting theory – Gordon props up the economy by goading people into debt and then, when debt increases start to stagnate, props up the economy by engineering a rate increase (could the inflation figures be being massaged to prod the BoE?)

    If this were true, then what would be the next logical step? Presumably we will see increasing bankruptcies (interesting that that has already been feathered as the route of choice by changing legislation and refusing to regulate IVAs)

    So how does lots of bankruptcies prop up the economy?
    And can anyone see the next step after that?

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  • As I recall, to cure their ills the Japanese emergency inflation busting interest rate rise of the early 90’s came to 2.5%.

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  • George – I also read the article, and I agree with what it was saying, but the article was still a little disappointing. It didn’t say enough.

    I’m not particularly into conspiracy theories, although I must admit that most don’t seem too absurd. And it has been mentioned on this blog before that a boom/bust housing market does result in many people being enslaved to their mortgage repayments. If you were a bank and wanted to maximise profits, and you were in any way able to influence the market, a boom/bust market would be the most profitable. Particularly given the ‘creation of money’ theory in the fed article.

    I feel like I’m a long way from properly understanding it, but can’t help feeling that I’m thinking along the right lines.

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  • Really portrays it out in laymans terms. So there are two ways this will go, infinite HPI or massive crash, which would you back?

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