Wednesday, April 9, 2008

House armageddon

House prices: disaster ahead

"conditions in the British housing market today are broadly similar to those in America a year or two ago. The question is whether the Bank of England and the Government will respond to the housing downturn as energetically as the Federal Reserve Board, the White House and the US Congress. The American Government has risen to the challenge of the credit crunch and housing crisis; the test for British institutions has only just begun" Absolute Tosh!

Posted by confused76 @ 11:38 PM (1035 views)
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7 thoughts on “House armageddon

  • No wonder the £ is crashing with this sort of sentiment kicking around and it’s possible implications for IRs. Anyone for a 0.5% cut this week?

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  • “In sum, any simple comparison with the recent US experience suggests that house prices here should probably fall by a further 30 per cent in the next two years”

    RIP British housing boom.

    Kirsty, start softening up that felt hat now – it’ll take some time to chew and swallow.

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  • sure…with websites like http://www.fakepaycheckstubs.com and EVERY broker having this software in thier arsonal….Yeah, at some point….something has to give!

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  • “The question is whether the Bank of England and the Government will respond to the housing downturn as energetically as the Federal Reserve Board, the White House and the US Congress. The American Government has risen to the challenge of the credit crunch and housing crisis”

    Absolute load of b*ll*cks. What effect did the ‘energetic’ rate-cutting by the Fed have on the credit crunch and the housing downturn in the US? That’s right – zilch, zero, nada, absolutely none.

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  • The chart shows that the UK could be in for a much sharper decline than the US and maybe to the ’99/’00 level if comparative parrallels are drawn between the ’90’s crash and this one. That would mean a minimum 40% drop over the next few years. Yippee, by which time the pound will have lost more than 50% against the Euro, unless Mr T decides to lower rates, and a little less against the dollar. Not a great trade off, but better than nothing.

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  • Yet another commentator missing the all important detail that on both sides of the pond, incomes have been inflated by equity withdrawal, govt borrowing and trade deficits.

    40% is the level of eventual stability, but there will be a rocky ride first

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  • To clarify – 40% drop – e.g. £250k now going to £150k

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