Thursday, December 20, 2007
The real effect of falls in house prices – a dent in expectation
This country is so damn obsessed with house prices, we have completely forgotten about anything that creates real wealth, like manufacturing... ''Rising interest rates made in the run-up to 2007 were already starting to bite and despite reassurances from analysts that the housing market was on firm foundations, prices did begin to fall. By the autumn Nationwide and Halifax data showed that price falls were real. There were fears that novice landlords who snapped up new build flats with the lure of incentives would get their fingers burnt. Auctioneers reported that increasing numbers of new-builds were being repossessed and were going under the hammer for 30 per cent less than the owner paid just two years earlier.''