Grauniad: Prices could be 40% off peak by 2010

WTF?_2

http://www.guardian.co.uk/business/2008/oct/14/housingmarket

The average price of a house in the UK will not climb back to its 2007 peak until 2023, a leading academic said today.
Andrew Clare, professor of asset management at Cass business school, said the state of the housing market will get "a lot worse" before it starts to pick up again.
Using futures contracts based on the Halifax house price index, he has calculated that, in 2010, house prices will be 40% lower than their peak of £199,600 in August last year. "Worse still, according to these prices, the Halifax index will not recover to its August 2007 level until 2023," he said.
Clare said his survey was "very bad news" for anyone who bought a house in the UK last summer and predicted that negative equity would become a big feature of "our economic landscape for years to come".

No need to rush to get a bargain before the market recovers, if this guy is right.

StevieJ

!!!!!!? wrote: »

http://www.guardian.co.uk/business/2008/oct/14/housingmarket


No need to rush to get a bargain before the market recovers, if this guy is right.

Have you run out of articles and are now into recycling, a strange feeling of deja vu.

ess0two

He's trying his best to put a dampner on the latest IR cuts.

WTF?_2

ess0two wrote: »

He's trying his best to put a dampner on the latest IR cuts.

On the contrary, they are good news for me.

I lose out on savings interest but with houses dropping like a stone that's not too much of a hardship now, is it?

And since the government looks set to cut and cut again on interest rates it means with my large deposit I can actually usefully access those cheap rates, unlike most borrowers.

It means that when the time comes to buy, should I decide to go for a really nice property I'll be able to stretch myself with a low interest rate mortgage without too much trouble, provided I get a fix before inflation and high rates return bigtime. Or I can buy something that I can afford outright (I'd guess 3-bed semi by 2010) and take out an offset mortgage to gain access to really cheap credit.


It's just that these loony policies on cutting rates will wreck the general economy (even more) in the longer term and will end up hurting people more than they help them.

penguine

StevieJ wrote: »

Have you run out of articles and are now into recycling, a strange feeling of deja vu.

Have you run out of reasons for why the crash isn't going to be that bad?

pickledpink

!!!!!!? wrote: »

http://www.guardian.co.uk/business/2008/oct/14/housingmarket


No need to rush to get a bargain before the market recovers, if this guy is right.

That article was written on 14th OCTOBER! Before the interest rates were cut.

You're behind the times!!:rotfl: :rotfl: :rotfl:

dopester

The article is way too optimistic.

We're fast approaching where people realise the country is skint, so deep in debt, and with so very few profitable generators left of wealth in any sector.

I've got private banking facilities and they are on alert for me, for the type of house I want in a current price range, from what will be many over-extended and in-distress debtors. House prices are spectacular over-priced, and more so in this failing economy. I'm not even sure if I'll have to pay for the house I want, except for a token payment.

WTF?_2

pickledpink wrote: »

That article was written on 14th OCTOBER! Before the interest rates were cut.

You're behind the times!!:rotfl: :rotfl: :rotfl:

Obviously, the asset management professor who compiled the report didn't take into account the possibility that interest rates could fall before 2023 :rolleyes:

ad9898_3

Oh no too many rolling head smilies, we all know what that means

StevieJ

penguine wrote: »

Have you run out of reasons for why the crash isn't going to be that bad?

That doesn't make sense.

pickledpink

!!!!!!? wrote: »

On the contrary, they are good news for me.

I lose out on savings interest but with houses dropping like a stone that's not too much of a hardship now, is it?

And since the government looks set to cut and cut again on interest rates it means with my large deposit I can actually usefully access those cheap rates, unlike most borrowers.

It means that when the time comes to buy, should I decide to go for a really nice property I'll be able to stretch myself with a low interest rate mortgage without too much trouble, provided I get a fix before inflation and high rates return bigtime. Or I can buy something that I can afford outright (I'd guess 3-bed semi by 2010) and take out an offset mortgage to gain access to really cheap credit.


It's just that these loony policies on cutting rates will wreck the general economy (even more) in the longer term and will end up hurting people more than they help them.

Talk about contradict yourself!!!:rotfl:

You said in the 3rd paragraph:

"It means that when the time comes to buy, should I decide to go for a really nice property I'll be able to stretch myself with a low interest rate mortgage without too much trouble,"


And then you said in the last paragraph:

"It's just that these loony policies on cutting rates will wreck the general economy (even more) in the longer term and will end up hurting people more than they help them.[/quote]


:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Heloooooooooooo????:j

Didn't you get any sleep last night, !!!!!!? You're not stressed by an chance?:D