Friday, October 2, 2009
Bull Trap Bull Trap Bull Trap
Good to see a few article todays at least pointing to the inevitable falls to take the market back to where ordinary folk can afford to enter it. Eventually the message has to sink in that a market that is bottoming let alone recovering needs FTB's / sensible loan to incomes (especially in a market where interest rates are rising) and money for lending . Good to see the IMF are back to saying: " the typical housing boom lasts six years and sees house prices in real terms go up by about 50%. Downturns last five years, during which time house prices in real terms fall about 24%. ...prices in the UK, Spain and Denmark all probably have quite a long way further to fall - in the UK's case, maybe another 12-13% in real terms."