Thursday, Nov 12, 2009

Succinct roundup of why prices will fall

This Is Money: Why Britain's house price crash is far from finished

'In Britain house prices remain 170% higher than they were in 1997, but average earnings have risen by only 55% in the same period.'

Posted by dohousescrashinthewoods @ 08:27 PM (1801 views)
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5 Comments

1. This comment has been removed as it was found to be in breach of our Blog Policies.

 

2. alan said...

Couldn't get in. Link may have been changed. Try:

http://www.thisismoney.co.uk/property-prices

Basically, what this site has said for the past 3 months....

Thursday, November 12, 2009 10:37PM Report Comment
 

3. dohousescrashinthewoods said...

Odd one, sorry about that. The plain link is:

http://blogs.thisismoney.co.uk/this_is_money_blog/2009/09/why-britains-house-price-crash-is-far-from-finished.html

and hopefully as a clickable one:

http://blogs.thisismoney.co.uk/this_is_money_blog/2009/09/why-britains-house-price-crash-is-far-from-finished.html

Thursday, November 12, 2009 10:48PM Report Comment
 

4. keith thomas said...

If the Government chucks enough money at the economy and continues to bail out the mortgage payers with low interest rates maybe prices will never fall. Eventually wages will catch up and in real terms house prices will have fallen but the public won't notice. It's not that house prices always goes up - it's the value of money always goes down.

Friday, November 13, 2009 08:24AM Report Comment
 

5. sybil13 said...

And this is the point isn't it http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2009/10/house_prices_too_good_to_be_true.html
article said: "the IMF's conclusion in its latest World Economic Outlook, out yesterday says 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%.

The IMF folk compare that historical picture with what's happened in individual markets so far. They then go back and run more complex models with measures of affordability and other data. The conclusions are broadly the same: prices in the UK, Spain and Denmark all probably have quite a long way further to fall "


Taking the Nationwide’s figures, the 1997 to 2007 boom saw prices rise by 147 per cent in real terms. Within that, prices rose 76 per cent between 2001 and 2007. So of previous boom / crashes saw property go up 50% and fall 24% what is really going to stop this market adjusting?

Friday, November 13, 2009 08:42AM Report Comment
 

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