Wednesday, January 2, 2008

Big guns predict big falls

Correction in property on its way

Julian Le Grand of the London School of Economics said prices could fall to 5x average earnings from the current 9x. John Van Reenen and Willeim Butier, also of the LSE, predicted house price falls of 20-30% over the next couple of years. Philip Booth at the Institute of Economic Affairs sees price falls of 10 per cent in 2008. James Knightley at ING said mortgage equity withdrawal could "grind to a halt." Lombard Street Research, which conducted the survey of 52 leading economists, said falls of 4% should bge expected in 2008.

Posted by little professor @ 02:40 AM (1353 views)
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6 thoughts on “Big guns predict big falls

  • little professor says:

    The Daily Telegraph/Lombard Street Research Housing Affordability Index shows they are at their most overvalued since early 1991 – when prices were plunging, causing hundreds of thousands to have their homes repossessed.

    The index, in which 100 points represents the average affordability level since the early 1960s and a lower figure means prices are more overvalued, is now at 82.9 points – some 12 per cent worse than this time last year.

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  • I don’t think anyone is going to buy in a climate like this….

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  • Funny how when you remove the vested interests from the panel of ‘experts’, there’s no mention of stagnation or a soft landing.

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  • national minimum wage x average house price = this is the way the world ends , not with a bang but a whimper, or perhaps houses rise and fall
    crumble, extended, in my beginning is my end and in the end my beginning……catch phrase for 2008, ”
    “spent my house “.innit?…cold, grey damp, miserable unaffordable, violent ,overcrowded and who says policy doent make politicians is undemocratic.

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  • Hmmm 5x earnings? I still think 3x is more likely.

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