Five reasons house prices will plunge further

tommy75

http://www.moneyweek.com/investments/property/five-reasons-house-prices-will-plunge-further-43827.aspx

tommy75

Q: This article doesn't include the impact of VI. How much impact can the vested interest we are currently seeing have? Can it infact hold a bottom on the market now or will it be short lived through the summer as more bankruptcys, redundancys and fall in sales are reported everyday?

cardsharps

Only 5 reasons?

tommy75

cardsharps wrote: »

Only 5 reasons?

Thats a good point.

mewbie_2

tommy75 wrote: »

Q: This article doesn't include the impact of VI. How much impact can the vested interest we are currently seeing have? Can it infact hold a bottom on the market now or will it be short lived through the summer as more bankruptcys, redundancys and fall in sales are reported everyday?

VI has been present all the way through the pre boom years, the boom and the bust. And to be fair you can't blame them for trying to pump up the market, the volumes, etc. It's their livelihood.

But if the buyers and loans aren't there, and the glitz has gone for a few years, then all the puff in the world isn't going to stop falling prices.

ad9898_3

mewbie wrote: »

VI has been present all the way through the pre boom years, the boom and the bust. And to be fair you can't blame them for trying to pump up the market, the volumes, etc. It's their livelihood.

But if the buyers and loans aren't there, and the glitz has gone for a few years, then all the puff in the world isn't going to stop falling prices.

I wouldn't mind VI if it was the whole truth, the issue at the moment is a sow's ear is being presented as a silk purse, and people are falling for it. Will it hold the market ?, mmmmm sentiment can be a powerful thing, however in the case it won't be enough, too much bad economic news going forward, you only have to take today's news on job losses as proof.

Robert Peston was on 5 Live not so long ago saying next year, after the election the public sector recession will begin, as all this money Labour are blowing has to be repaid, and the public sector will be the fall guy.

macaque_2

tommy75 wrote: »

http://www.moneyweek.com/investments/property/five-reasons-house-prices-will-plunge-further-43827.aspx

Hello?

If history repeats itself, "house prices could more than halve from here".

House prices have fallen by twenty something per cent. If David is saying they could halve again, that means..... thinking ......... thinking .........sssssssh ........ give me more time .............. Ah!!! Welcome to the 70% club David Stevenson!

chucky

the article should have had the headline - 5 reasons why Houses prices won't rise.

i think only the 5th reason is the one that can push high prices lower really.
you would then have to look at affordability by regions too not on a national average - affordability on a national level can be skewed when you're including London House prices and salaries in the south-west in the same calculation.

mewbie_2

This isn't really a reason, just a headline, but I thought bloody hell when I read it. It's still getting worse out there.

70,000 jobs at risk...

http://news.bbc.co.uk/1/hi/business/8091298.stm

Oh yeah, I know it's Germany, but we're all part of Europe.

chucky

mewbie wrote: »

This isn't really a reason, just a headline, but I thought bloody hell when I read it. It's still getting worse out there.

70,000 jobs at risk...

you're so predictable Mewbie but at least you make things easy - the 70,000 jobs at risk. will that just impact home owners?

i'd check the Thomas Cook share price today - up 10%.
http://uk.finance.yahoo.com/q?s=TCG.L
i don't think the UK will have any issues with Thomas Cook...

mr.broderick

chucky wrote: »

you're so predictable Mewbie but at least you make things easy - the 70,000 jobs at risk. will that just impact home owners?

i'd check the Thomas Cook share price today - up 10%.
http://uk.finance.yahoo.com/q?s=TCG.L
i don't think the UK will have any issues with Thomas Cook...

As the end nears a sentence that couldn't be further from the truth appears in front of me.