UK house price slump to persist until 2012

chucky

i am very surprised that none of these people that complain about house affordability haven't posted this...

The National Institute of Economic and Social Research (Niesr) expects that prices will keep falling because the availability of mortgages has shrunk by 65pc and is unlikely to pick up soon.

“There has been talk of stabilisation and some recovery in the housing market, but we don’t think this is the case,” Simon Kirby, an economist at Niesr, said. “We only see growth in the housing market returning in 2012.”

http://www.telegraph.co.uk/finance/economics/houseprices/5884166/UK-house-price-slump-to-persist-until-2012.html

mbga9pgf

Getting bored of it now. Been talking about this for 18 months now, you think the professionals would have twigged by now...

Thrugelmir

Nothing new. A lack of wholesale funding for mortgages was mentioned back in January 2009. Once the October 2008 crash became understood.

Yet know one appears to want to accept that its reality for the foreseeable future.

Conrad

Or another way of wording it "prices to stabilise until 2012"

Economists are always so late, I pay little attention to them.

nearlynew

It's nice to see something positive for a change.

I'm fed up with all the doom and gloom of rising prices.

IveSeenTheLight

the article also refers that the recent stabalisation is as a result of limited supply.
I'm wondering what will be the stimulus for increased supply?
Granted there will always be people who need to move / reolcate /be repossessed, but will this be sufficient to flood the market with supply greater than the demand from buyers?

The prediction comes as the latest surveys from Halifax and Nationwide show that the rate of decline in prices is easing. However, Niesr cautioned that the limited supply of properties for sale was behind the recent stabilisation.

“The temporary rise in prices is probably the result of limited supply,” a report from Niesr published on Wednesday said.

Dan:_4

What is this forum coming to....Chucky having to do the work for the bears!

inspector_monkfish

Why is it referred to as a House Price 'Slump' ??

Its not.
Its a 'Correction'

Dan:_4

inspector_monkfish wrote: »

Why is it referred to as a House Price 'Slump' ??

Its not.
Its a 'Correction'

Because house prices are 'slumping'

IveSeenTheLight

inspector_monkfish wrote: »

Why is it referred to as a House Price 'Slump' ??

Its not.
Its a 'Correction'

Statistics would show that it has corrected to the long term trend.

I guess what is being discussed is if there will be an overshoot as per previous histrocial evidence and if so by how much.

Graham_Devon

Conrad wrote: »

Or another way of wording it "prices to stabilise until 2012"

Economists are always so late, I pay little attention to them.

Why would they word it stabalise when they are specifically stating falling?!