Wednesday, Dec 20, 2006

15% house price increases in 2007?

BBC News: House prices 'to be 15% higher'

Lombard Street Research have predicted that there will be no slow down in house price growth in 2007. After correctly predicting a 10% increase in 2006, they estimate 15% for 2007.

Posted by jellycaster @ 12:59 PM (1722 views)
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23 Comments

1. Davros said...

So let me get this straight, my rent is 1000/month, the mortgage would be 1600/month and yet house prices arn't overvalued? A trebling of house prices over 10 years, all measures of affordability are at record levels and yet this isn't a bubble either supposedly.

This report bears no relation to reality.

Wednesday, December 20, 2006 01:18PM Report Comment
 

2. george monsoon said...

"House prices are not overvalued if you look at affordability with interest rates at just 5%," Diana Choyleva, Lombard Street forecaster, said.

Yea right.. cook my sock you ignorant witch, with your three figure income and chelsea tractor..
try living on my side of the fence, the one marked "real world" where my wage has increased 5% while houses have gone up 165%

Thats it, Im enraged yet again...

Wednesday, December 20, 2006 01:25PM Report Comment
 

3. bidin'matime said...

Reports like this are enough to turn any (well most..) remaining bears into bulls - oh goody!

Wednesday, December 20, 2006 01:40PM Report Comment
 

4. inflation is eating my savings said...

Merry Christmas everyone. Take heart. You may not have a house, but you still have your bodies and minds intact (most of you anyway). Don't stress too much about money and houses this holiday.
These things all end up owning you. Remember also that empty vessels need more money to fill them, so have some sympathy for the poor bitch.

Wednesday, December 20, 2006 01:41PM Report Comment
 

5. harold said...

This is great news for HPCers - when monkeys like this start forcasting booms a crash must be imminent. Bring on the predictions of 50% growth.

Wednesday, December 20, 2006 01:48PM Report Comment
 

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8. Gingerbread said...

Yep, exactly the same bonkers predictions came out just before the last crash!

So, yes house prices 'could' rise by 15% but just as easily they 'could' fall by 15%

it's just throwing irrelevant figures into the air. Nobody KNOWS what direction house prices will take. But at the current levels I certainly wouldn't be buying now, or anytime soon.

Wednesday, December 20, 2006 01:55PM Report Comment
 

9. paul said...

The BBC, as always have chosen a piece from a relatively unknown research company and whored it onto their front pages.

They love it don't they?

But I'm quite sure that homeowners will not currently identify with this claptrap. Something's up when anecdotal evidence doesn't ring true.

Wednesday, December 20, 2006 02:27PM Report Comment
 

10. sold 2 rent 1 said...

I am still sticking with15% HPI in the summer will be the peak.
Remember that this is Fred Harrison's "winner's curse" that still has up to 12 months to go.

If we only have one or no IR rises then this boom will last the whole year.

Save as much as you can and diversify some of that cash into gold and yen (when the time is right)

Remeber there is no HPC without high unemploment.
We won't all keep our jobs

Wednesday, December 20, 2006 02:28PM Report Comment
 

11. Taffee said...

apparently first time buyers can't afford a property.....BUT DO NOT WORRY they are not needed.NOT

These sort of predictions are confirmation of a bust around the corner....probably around 30-50% or more.

Wednesday, December 20, 2006 02:37PM Report Comment
 

12. David20040_0 said...

Unfortunately Lombard Street Research predicted a 10% increase for 2006, while many others did not and they were proved right.

I hope and pray that house prices don't go up 10% next year but I have a horrible feeling that they will.

It is now almost expected that house prices rise 10% every year bar a thermonuclear explosion wiping out humanity as we know it.

Hey guys I am 21 and even if I saved all my salary it is still wiped out by how much prices rise and I have a student loan after studying for a 2:1 Law LLB at my local polytechnic to save costs.

I doubt I will ever own a home, EVER.

Wednesday, December 20, 2006 03:42PM Report Comment
 

13. Taffee said...

you must be joking

Wednesday, December 20, 2006 04:53PM Report Comment
 

14. Wilee said...

Like Jelly I also spotted this article on the BBC News Business page and was astounded at the
predictions for 2007.

Then I noticed immediately below the article in question another from the BBC, this time entitled
"Festive fortunes improve at shops" which begins..... "Christmas trading could finally be improving
for UK retailers as evidence grows of a pick-up in sales".

At this point I recalled how only minutes ealier on tonight's ITN News it was reported that shopping
on the Internet and the recent IR rises were having the opposite effect on high street shopping this
year, with sales brought forward and with big discounts on offer, to compensate.

It just makes me smile, the different spin that can be put on the news.

Wednesday, December 20, 2006 07:21PM Report Comment
 

15. Nohpc said...

I am neither a bull or a bear. I don't think prices will boom or bust next year but I do know that they will definately boom or bust at some point in the future. I will be really annoyed if all the bears on here don't jump into the market if prices drop and then start complaining during the next house price boom again.

Wednesday, December 20, 2006 08:15PM Report Comment
 

16. paul said...

The BBC cherrypicks obscure sources to force its own biased views onto the public.

Its done it for so long that most bears and bulls I know stopped reading a while ago. State broadcast news in China uses the same methods of course, after all the BBC is the UK state's mouthpiece (more than ever).

Thursday, December 21, 2006 12:29AM Report Comment
 

17. Nohpc said...

Personally, I hope HPI does not reach 10-15% next year because it may form a property bubble which is unsustainable. Prices as they are at the moment are safe and sustainable as proven by the fact there are still lots of sales and banks are stilling willing to lend for the mortgages. If this prediction comes true it could prove dangerous.

Thursday, December 21, 2006 01:05AM Report Comment
 

18. Nohpc said...

And if house prices crash by 30 percent at the end of next year after a 15% rise all this will serve to do is wipe out the last 2 years growth.

Thursday, December 21, 2006 01:06AM Report Comment
 

19. Gingerbread said...

Just a quick note to David20040_0 to say......crikey m8, you're 21, what the heck are worrying about house prices for? You are YOUNG, live a little ;-)

Don't saddle yourself with a massive debt so early in life. Wait,save and buy when sanity returns and prices are reasonable, it WILL happen.
I'm a little longer in the tooth and remember the last crash only too well, we've been here before ;-)

Thursday, December 21, 2006 08:36AM Report Comment
 

20. bidin'matime said...

In a bubble, those who forecast rises are always proved right - right up to the point that it bursts.

Thursday, December 21, 2006 01:20PM Report Comment
 

21. the bald man said...

Remember the last crash? Wasn't everyone saying this before the bubble burst?

Thursday, December 21, 2006 03:27PM Report Comment
 

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