MSE news 'House price crash is over'

westv

westv wrote: »

No. Our MP's are in the City of Westminster. The "square mile" is the City of London.

Alan_M wrote: »

Ahh, so in the statistics what does "Central London" cover?

Both plus extra bits.

nearlynew

Even the queen has to ask for permission to enter the "city of london"

That tells you, more or less, everything you need to know about where power lies.

http://www.freedomdomain.com/banking/the_city.html



Having a magic money making machine and being able to print your own money, bestows a lot of power on a person or organisation.

Being the only one allowed to do it................ "legally".............. well, that is the ultimate.

GSXRCarlos

i wish halifax would keep their bloody mouths shut,

stop giving people false hope!

http://uk.news.yahoo.com/22/20090805/tuk-uk-britain-halifax-fa6b408.html

StevieJ

GSXRCarlos wrote: »

i wish halifax would keep their bloody mouths shut,

stop giving people false hope!

http://uk.news.yahoo.com/22/20090805/tuk-uk-britain-halifax-fa6b408.html

What do you mean

However, it cautioned against reading too much into July's monthly rise in prices, warning that the market remained vulnerable.
"I wouldn't want to get too excited about the improvement this month because the housing market still faces considerable headwinds," Halifax economist Martin Ellis told Reuters.
"Unemployment is rising sharply and is expected to keep rising for some time and there's a shortage of mortgage credit available and I don't see that changing dramatically in the near term

GSXRCarlos

Sorry Stevie,

I was a little bit over zealous posting the link, i'm just sick of seeing the same headlines all the time (Yahoo's fault not Halifax's)

It just frustrates me that the media is telling everyone that things are on the up, yet unemployment is the worst we've ever seen, there's no work out there and the banks refuse to start lending again (some credit is required to kick start the economy)

System

They're just telling people that house prices have gone up, which they have. Same way they were telling people they were going down, which they were. I'm not sure what people expect from a headline in these situations.

"House prices up yet unemployment is the worst we've ever seen, there's no work out there and the banks refuse to start lending again" is probably a touch long.

StevieJ

GSXRCarlos wrote: »

Sorry Stevie,

I was a little bit over zealous posting the link, i'm just sick of seeing the same headlines all the time (Yahoo's fault not Halifax's)

It just frustrates me that the media is telling everyone that things are on the up, yet unemployment is the worst we've ever seen, there's no work out there and the banks refuse to start lending again (some credit is required to kick start the economy)

On the other hand the Yahoo headlines are announcing the shocking loss by Lloyds and the shares are up 5% and 50% in the past few weeks.

Newbeginning

I found the below article very interesting as it looks at how house prices have changed during previous recessions. It also analyses the relationship between unemployment and house prices.

http://uk.biz.yahoo.com/21072009/389/job-losses-affect-house-prices.html

In the last recession, house prices fell from 1989 to 1995, so, if this is the deepest recession since the Great Depression, how can house prices already be on the up? It clearly doesn't follow.

And why do people who are convinced that house prices will now increase think that they are going to buck all previous trends? What is so different about the housing situation in the UK compared to 15-20 years ago? (That's a genuine question by the way, as I find all this stuff really interesting).

I am also interested in how the predicted cuts in public spending next year will affect unemployment and house prices.

Another article in the Telegraph today explores both current and historical ratios of house prices to average earnings.

http://www.telegraph.co.uk/finance/5957481/House-prices-are-still-falling.html

My personal view is that, at the moment house prices are being propped up with artificial measures that are unsustainable and that is why we have not yet seen the predicted drop in prices.

Quote from Telegraph article:

'Over the period June 1989 to July 1995, for example, when average house prices fell from £70,095 to £60,965 there were 23 months where prices increased and three where they were flat and 48 when they fell.'

chucky

Newbeginning wrote: »

I found the below article very interesting as it looks at how house prices have changed during previous recessions. It also analyses the relationship between unemployment and house prices.

if you just look at the last recession you could be right but no recession is comparable.

• early 1980s recession - return to peak prices happened in less than 12 months
• mid 1970s recession there was no drop in house prices
• early 1990s recession it took 5/6 years to return to peak house prices

it all depends on what you read and hwat they're trying to present to you

StevieJ

This HPC prices have dropped rapidly so may reach the bottom quicker, they have already dropped by more than your example. I don't think many people actually expect much more than stagnation for a while as a gradual increase in credit availablity is countered by increasing unemployment (or fear of).