Tuesday, June 29, 2010
Broken
The housing outlook isn’t good
Oh dear. If you track house prices and mortgage approvals figures since 1994 you see a very close correlation; as you’d expect, the one clearly driving the other in an instantly comprehensible way. But since last year the relationship has completely broken down, and last year’s mini-boom in prices went way ahead of what was happening in lending. It seems that the mini-boom may be over, though, because the special factors pushing prices higher last year – notably parental bungs to first time buyers, some foreign interest and a general shortage of “quality†stock – are wearing down now.
Posted by dill @ 07:15 PM (4268 views)
3 thoughts on “Broken”
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drewster says:
Unless you’re an aspiring FTB, in which case it’s great news.
enuii says:
Surprisingly this parent has nothing to bung to his offspring and is mortgaged up till 65, I suspect many others are likewise.
The show is over and without radical wage rises will be for many years to come!
Future interest rate rises will also shake out those who are currently highly leveraged in the mortgage stakes especially the over 40’s with mid to late teenagers who will be shortly sucking the financial living daylights out of them.
Captain Tightwad says:
Or you give a damn about the future of the UK economy, in which case it’s great news.
Or you have kids or grandkids, in which case it’s great news.