Tuesday, May 31, 2011
Why on earth does anyone think the same won’t happen here?
Us house prices just keep on falling
I expect house prices in the uk to follow suit from any even higher level than the US...the question is when.I'm beginning to think god help us when it does
Posted by taffee @ 05:46 PM (1067 views)
7 thoughts on “Why on earth does anyone think the same won’t happen here?”
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box thinker says:
America is just ahead of us, we will be next and the fun will begin. Anyone ready for the end of fiat money?
drewster says:
In the UK, we’ve seen a sharp disconnect between London prices and the rest of the country. Is there a similar pattern in America, i.e. New York and Washington D.C. remain buoyant while the rest of the country is sinking?
Crunchy says:
2. drewster
I wonder who the culprits are, ‘who benefits’ is always the first question.
Skeptical First Time Buyer says:
@box thinker – not fully
confidence in paper definately seems to be declining.
I think we will return to a partially backed currency. I’m not sure a full end to FIAT is possible, is there availability of precious metals in the world to make a feasible currency given the size of the world population?
If we do go fully PM, then I think prices will have to rise considerably
I think Bretton Woods 2 is on the cards within the next 10 years, but we will go to a basket solution of paper currencies pms and other resources. I think there is a battle on between backing the dollar, and switching to a new currency (SDR), and S K was a casualty
alan says:
Much of London’s house price growth is fuelled by foreign cash. Gadaffi and his family bought some as “an investment”, Lots of hot money ends up in London. it’s not the same for the rest of the UK, of course.
The big EAs are very focussed on foreign money. I’ve seen several articles on the subject.
Take a look at our premiership football clubs – bought with hot (or very warm) money from abroad!
it_is_going_with_a_bang says:
The US is a different story to the UK. Do not expect much to change in the UK.
I would say nothing will really change with rates at 0.5%.
Many borrowers and landlords included had limits set in their Base Rates that most people could only dream of these days.
You would need a change of base rates to 2% to have any real effect on prices and that won’t happen anytime soon.
The BOE simply will not make a change like that. The only possible risk to house prices in the short to medium term is large job losses across the country.
it_is_going_with_a_bang says:
I will just add to that … everyone should expect volatile prices of maybe +5% to -15% from where it is now.
But I just cannot see it changing much more over the next 2 years.
More of a sparkle than a bang … unfortunately.