Monday, Oct 12, 2009

People Remain Long Term Property Bulls

The New York Times: A Bounce? Indeed. A Boom? Not Yet

I'm sure it's the same in the UK. People think property always goes up (fast) over the long term, and any falls are short term only.
In our survey, we ask, “On average over the next 10 years, how much do you expect the value of your property to change each year?” The average answer among 311 respondents in 2009 was an increase of 11.2 percent.
In our survey data from one year earlier, when prices were falling at an annual rate of nearly 20 percent, buyers were still expressing long-term optimism. Then, the average answer to the question about expected yearly increases in home values was 9.5 percent a year.

Posted by ontheotherhand @ 12:12 PM (863 views)
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1. inbreda said...

maybe they understand about money printing and inflation?

Monday, October 12, 2009 01:16PM Report Comment

2. str 2007 said...

Interesting how mass opinion can become a self fullfilling prophecy.

Monday, October 12, 2009 02:07PM Report Comment

3. house said...

I cannot understand the people who expect the prices to go up by 11.2%.
This means that a property bought for £150000 will be worth £425850 in 10 years time. This is at the rate of 11% compounded.
People must be very stupid o do not understand simple percentage calculations.
Can anybody dispute my figures ? It is simple mathematics.

Monday, October 12, 2009 02:20PM Report Comment

4. refusetobuy said...

150 000 * (1.11^10) = 425 913.15*1.11^10

Monday, October 12, 2009 03:53PM Report Comment

5. crunchy said...

2. str 2007 said...Interesting how mass opinion can become a self fullfilling prophecy.

The first rule of mass manipulation, and we all pay into it like a blindman loyaly feeds his lead dog.

Monday, October 12, 2009 04:43PM Report Comment

6. clockslinger said...

House @ 3, possible I fear if Blanchflower economic doctrine continues to hold sway as it has done up to now. ourse the pound will be 75 european cents / 80 yen and food/oil/utility bills will be have incresased accordingly. But, of course, that is the pretty much declared aim of the BoE right now, isn't it? Inflate away their debt and that of the people with half million fact it will make the latter look very sharp puppies indeed on your figures.

Monday, October 12, 2009 07:34PM Report Comment

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