MSE News: Nationwide says house prices at 2008 levels

mewbie_2

Cleaver wrote: »

Are we still talking about house prices? It sounds like Terminator 5.

I thought it was slightly OTT. I just couldn't be bothered to argue with Chucky and this is going to sound really terrible, and letting the side down... but I didn't care if he'd 'won' or not. My heart wasn't in it.

Maybe I am defeated, but if you cut these veins open then you'd see MSE written inside.

carolt

Dan: wrote: »

Mewbie has been defeated. The war is coming to an end with a BULL victory.

Was there a war?

Which war?

Did I miss it?

Which playground are we in again?

Really2

JonnyBravo wrote: »

Eh? The OP? I was commenting on your response to Mr Mumble.

Mr Mumble commented thus....



You responded by decrying this as we only deal in £'s.


He is clearly getting at the fact that your £ buys less than it used. Whilst our houses have recovered to 2008 levels in nominal terms that would buy far less of "an average item" than it would have in 2008.
Now obviously you can point and say but the gas has gone down 10% since then but elsewhere it has gone down by 30%. We can all find items it doesn't apply to or applies to to a lesser degree but the average still holds true. We are "poorer" for our £ being worth less, it just doesn't feel too much like it as it affects everyone in the country.
The fact remains, we are worse off in total relative terms because the pound is worth less.
I agree it is difficult to measure this, or to even feel its effects, seeing as most of us really only deal in £'s but its true.

The reason I disagree is inflation was much higher this time last year.
My cost of living as decreased this year even excluding mortgage payments so I would argue we are not actually really feeling the cost of the £ falling as much as we should have if it was in the boom (because of deflation in goods and comodoties).

The only items I have seen vastly inflate is bigger ticket items..
But lets face it they are not monthly purchases for most of the UK (especially on here)

I presumed that MR mumble was stating house prices had fell if you transfer their cost in to other country currancys compared to this time last year. (they have but not really that important to most of the population unless they are selling up and moving abroad)

The point was not clear stating house prices then showing a exchange rate graph.

But yes of course I agree the £ as devalued. But it is not QE that did that look at the level it was at pre QE. It has gained ground since QE not slipped further.

nollag2006

So much for the doomsayers predicting that nominal prices would take 5 years to get back to the 2007 peak from the nadir at the start of 2009. Looks like we'll be back at boom time prices by mid-2010.

Happy days are here again... !!!

treliac

A friend posted this link elsewhere. A fuller picture perhaps!

http://www.investorschronicle.co.uk/Columnists/ChrisDillow/article/20091002/ae27a24e-af45-11de-ad49-00144f2af8e8/More-doubts-on-house-prices.jsp

I've gotta say that I've seen a few 'sold' boards up locally - only to be replaced by 'for sale' again.

I remain a wary sceptic of the propaganda of self-interest.