'House prices in Britain rose last month, confirming that the slump levelled

RDB

'House prices in Britain rose last month, confirming that the slump in the south of England has levelled out, according to the Halifax,' ran the story in The Times. 'The Halifax's latest quarterly survey shows that prices in general rose by 0.5%, and the indications are of a definite bottoming-out'.


The above statements were not made this week or last week. In fact, they were made in October 1990. House prices didn't bottom for another four years.


http://www.moneyweek.com/investments/property/what-we-can-learn-from-the-last-housing-crash-14794.aspx

PasturesNew

I liked this bit:

If you have property that you are not particularly keen on, the next few months are, in my view, your last chance to get out.

dopester

This next chart shows the ratio of house prices to earnings for the average first time buyer. As you can see, we are still above the peak levels of 1988!

Wages are deflating. Still tickles me all those arguments !!!!!! and I had... his insistence no one would take a pay-cut and "standby for mega inflation."

Millions face pay cuts as deflation hits record low

May 20 2009 By Ruki Sayid

--
Experts estimate seven million workers, including 2.5million public sector staff - from nurses and midwives to junior civil servants and prison officers - now face wages hell.

Funny you like that part Pastures. Love or hate your property, the next few months may be the last chance to get out, with a good price. Some people have a real education coming, and will regret not cashing in.

skap7309

I was just about to have a rant on why that piece is so wrong.................then i saw the bit at the bottom.

For someone to say the HPC is over because 'last months figures are positive' and 'indications' are showing a bottoming out is ludicrous. Hang on..........where have we heard things like that before?

I love this peice in the Times article - But the crown jewel came from property advisers Assetz - i didnt need to read any further because i am pretty sure of what i said.

Thankyou for digging it out, an interesting point to have made.

cubegame

RDB wrote: »

'House prices in Britain rose last month, confirming that the slump in the south of England has levelled out, according to the Halifax,' ran the story in The Times. 'The Halifax's latest quarterly survey shows that prices in general rose by 0.5%, and the indications are of a definite bottoming-out'.


The above statements were not made this week or last week. In fact, they were made in October 1990. House prices didn't bottom for another four years.


http://www.moneyweek.com/investments/property/what-we-can-learn-from-the-last-housing-crash-14794.aspx

One thing you forget in a comparison to 1990 is the influence of the media over us as a populace.

We are now much more manipulated in our 24 hour news society and the effect of confidence in the house market of a few "breaking news" stories and full page tabloid headlines will far outweight the effect of economic downturn.

We will see a gentle +1-2% mom rise and a dramatic upward ramping of house prices about a year after economic growth is restablished.

Dan:_4

Yes but prices had only fallen by around 8% by October 1990, so the crash hadn't really started by that point. And it's only 1 month - the last quarter of 1990 saw a -1% drop.

So far in 2009 prices have been stable - it's now much more then just a 1 month blip. and a far cry from the predictions banded around at xmas that 2009 would be worse the 2008.

the_ash_and_the_oak

Dan: wrote: »

Yes but prices had only fallen by around 8% by October 1990, so the crash hadn't really started by that point. And it's only 1 month - the last quarter of 1990 saw a -1% drop.

So far in 2009 prices have been stable - it's now much more then just a 1 month blip. and a far cry from the predictions banded around at xmas that 2009 would be worse the 2008.

kinda feeling pretty in line with predictions that (belated) govt policy would stem the tide of forced sales and mitigate falls in the meantime tho tbf

mewbie_2

RDB wrote: »

The above statements were not made this week or last week. In fact, they were made in October 1990. House prices didn't bottom for another four years.

I remember the 90's crash. I don't remember a single headline about crash or falling prices. Always recovery, although we had not apparently had a crash in the first place.

Course we didn't have the internet then. Now you can hear about recovery 24/7.

System

3rd time it's posted.

Just as stupid. Was this posted in 1990 after a 5 month period with a net result of an increase?

mewbie_2

Joeskeppi wrote: »

3rd time it's posted.

Just as stupid. Was this posted in 1990 after a 5 month period with a net result of an increase?

Course we didn't have the internet then...

System

mewbie wrote: »

Course we didn't have the internet then...

Actually we did, but you can use the word published instead.