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House Prices Set To Rise In 18 months
pickledpink
Posts: 763 Forumite
Looks like house prices are set to rise in 18 months......
http://news.bbc.co.uk/1/hi/business/7601461.stm
http://news.bbc.co.uk/1/hi/business/7601461.stm
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'HBOS chief Andy Hornby told the BBC it would take 18 months before US house prices started to rise again.' We're lagging behind the US in this property cycle.No reliance should be placed on the above! Absolutely none, do you hear?0
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He also said:
Mr Hornby added that there was "no doubt" that the UK was to see house price deflation on a scale not seen since the early 1990's.
But he added that unemployment - a factor which underpins people's abilities to pay their mortgages - would not reach the highs of that era.0 -
Many more years of falls for the UK then (US has been dropping for two and half years so far and their boom wasn't as boomy as ours). Looks like even the bank bosses are buying into it being 12-14 years before the UK gets back to 2007 prices.0
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What the man said:pickledpink wrote: »Looks like house prices are set to rise in 18 months......
About two-thirds of wholesale funding received by UK banks comes from overseas - primarily from the US. And the HBOS chief said that US money-market investors would not resume channelling of money to UK banks for mortgage-lending until US house prices started to recover - a process he said was set to last well into 2010.
"My personal view, for what it's worth, is that it will take 18 months to play through the system," Mr Hornby told our business editor in the latest of his Leading Questions programmes.
"It's going to take 18 months before US house prices have started to rise again - which is what's required for banks to have the confidence to start lending again. It will take a long time to play out."
So I make that well into 2010 before US house prices start to recover and only after that will the US investors start channelling money to the UK. And then it will take 18 months to channel through the system. And even then it will take a long time to play out. Pickled, you have let yourself become confused and you think all of the 18 months are the same 18 months. The picture is not as bleak as you paint it.
Before any of this money comes through, the banks and house buyers generally are going to have such a cautious view, that no one will lend or borrow without a fair chunk of equity being saved up already and then to cautious income multipliers.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
pickledpink wrote: »Looks like house prices are set to rise in 18 months......
http://news.bbc.co.uk/1/hi/business/7601461.stm
Like a man falling 80 feet onto a tin roof.0 -
lol, i nearly p**sed myself when I saw the title of this thread. I thought hey up, who as forgot to take their medication.:D.0
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"My personal view, for what it's worth, is that it will take 18 months to play through the system,"
This is purely an opinion, qualified as it may be but still a personal opinion and you know what they say about opinions...they are like ****holes, everybody has one!!!0 -
When the market collapsed in 1990 it took almost eleven years to recover.
Can`t see why it should be any different this time.
Think they call it a "cycle".0 -
If true, then buy in 17 months everyone!!
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