Five reasons house prices will plunge further

nearlynew

the underlying problems have still not been resolved.

i.e. there is too much debt in the system

More debt will not solve the problem. House prices have alot further to fall before we get to position of a stable and sustainable economy.

Higher lending will not be the solution.

IveSeenTheLight

macaque wrote: »

Hello?



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!

You need to go back to summer school.

If something is 100 and drops 20% it's now 80.
If that 80 halves then the new figure is 40
That means a 60% club, not 70%

tommy75

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.

Isn't it a bit premature for vested interest again though? I can understand it if the average price dropped to something in the region of 3.5 x wage pa (I know you can bring regions into equation) and VI's jumped in then to try and stop it undershooting but why do they jump in early when unemployment is shooting up in what has been described supposedly as the worst year of the recession before we come out in 2010 (Alistair Darling not me).
It again looks way to early just inviting cash rich in for the few decent rate deals available.
I rang an estate agent about a house this week that had been on the market (nice but about 1/3 overpriced) for 6 months and her words were "its been on six months but we have had alot of interest in it these last two weeks"
History repeating yet again?

macaque_2

IveSeenTheLight wrote: »

You need to go back to summer school.

If something is 100 and drops 20% it's now 80.
If that 80 halves then the new figure is 40
That means a 60% club, not 70%

I was waiting for that one. For that very reason my committee instructed me to use the phrase "twenty something per cent" (we have already overshot 20%) in my post.

'But "twenty something" only takes us to the mid 60s'. The 70% club welcome anyone in who is within +/-10%.

torontoboy45

macaque wrote: »

I was waiting for that one. For that very reason my committee instructed me to use the phrase "twenty something per cent" (we have already overshot 20%) in my post.

'But "twenty something" only takes us to the mid 60s'. The 70% club welcome anyone in who is within +/-10%.

60% will do me just fine, thanks.

I read a lot of wind and p1ss from the bulls here but the first point made in reason 5 - earnings to advance ratios that remained pretty stable for 18yrs compared to the lunatic ratio x4 + for the following 6 - ought to convince the speculators to embrace the SADA principle (Shock, Anger, Denial, Acceptance). most of the bulls have reached stage 3. stage 4 can't be far off.

crazygaijin

I loved this, can I please use it as my sig?