Thursday, July 12, 2012
House price stalemate
Twelve more years for house prices to recover
House prices will not recover their pre-crisis peak until 2024, according to analysis by PricewaterhouseCoopers. The warning that the UK housing market is only at the start of a 17-year, inflation-adjusted slump came as the accounting firm predicted that the economy will flat-line this year before growing just 1.7pc in 2013. Average house prices will have bounced back to their 2007 high in cash terms by 2017, PwC said, but will need another seven years to catch up with inflation. By 2020, headline prices will be up 30pc but still 7pc below their real terms peak.
Posted by quiet guy @ 01:55 AM (2559 views)
7 thoughts on “House price stalemate”
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Rebecca says:
So that’s just the 18 year rise and fall cycle completing its usual turn.
stillthinking says:
But the base nominal price doesn’t stay constant i.e. prices usually drop with progress so if the basket of goods changes from 100 GBP to 105GBP that does not mean necessarily that there has been 5% inflation.
These prices should be dropping in real terms, not staying the same.
mark wadsworth says:
A most gloomry report, according to this, houses will never become affordable, ever.
phils says:
Why should house prices ever “recover” to their peak?
mark wadsworth says:
Phils, you have to ask? Because the Home-Owner-Ists want them to, and unfortunately they are in charge.
general congreve says:
They can predict such price movements in pounds sterling and they may well be right. Makes little difference to me, as when the time comes I will be chipping off a sov or two and buying at very affordable real prices.
rumble says:
Crash becomes slump? That will really piss me off.