MSE News: Nationwide says house prices at 2008 levels

the_ash_and_the_oak

I'm not presumptuous enough to suggest I knew that things would manifest themselves the way they have this year in the way that they have and in that time frame but (with the hindsight we have now) its not surprising that if you drop rates hugely for existing owners (and have low-foreclosure strategies) that supply will reduce hugely (and that if you restrict credit to large sections of potential buyers) that demand will reduce hugely. and here we have the low transaction figures

What I don't really get is why this would necessarily change an overall perspective (either bull or bear) (well I see why it would change a bear perspective largely centred on rising resposessions via high IRs)

Also I don't agree w chucky that the crash only exists in the minds of those who 'want it to happen'. The main problem w debate here is too often that people focus too much on what an "opponent" wants to happen (ironically its this that I actually read MSE for - as barometer of popular sentiment - quite good for that imo - esp re:emotional investment)

chucky

the_ash_and_the_oak wrote: »

Also I don't agree w chucky that the crash only exists in the minds of those who 'want it to happen'. The main problem w debate here is too often that people focus too much on what an "opponent" wants to happen (ironically its this that I actually read MSE for - as barometer of popular sentiment - quite good for that imo - esp re:emotional investment)

i refer to future movement in prices in the short term regardless of 'opponents' as you like to call them.

there is nothing to say (quite the opposite actually) that house prices will drop to lower levels than they have already. that's where the delusional HPCer comment is directed at.

the_ash_and_the_oak

I put opponents in inverted commas not because I see it that way (I don't) but because most posts manifest themselves that way (debt-slave, living with mom and dad, making money out of others etc). Quite a moral dimension to many posts - v emotive imo!

Going to have to sign up for the delusional camp as well I think because I still think they'll drop to levels below what we have seen earlier this year

Mr_Mumble

Bulls are celebrating that their timeshare on the Titanic has recovered in value!

Sterling vs other currencies over the past year:



By chucking money out of the proverbial helicopter (QE and negative real interest rates) the BoE have managed to increase nominal prices. Anyone who thinks the value of their property is back to September 2008 levels has been duped.

Graham_Devon

Degenerate wrote: »

Prices Peaked in September 2007. Northern Rock went pear-shaped in September 2007. This is not a coincidence. The credit crunch was underway. Northern Rock failed due to lack of wholesale funding combined with a stupid business model that made them absolutely dependent on it.

Extremely simplistic view to say Northern Rock failed in September, therefore that same month prices started to fall. Then stating funding is back therefore house prices have risen, ignoring they been rising since feb before funding was back to anywhere near todays level.

It takes time for price falls to filter through after an event such as that.

Neither was funding all withdrawn that week from other lenders.

House price increases had fallen from pretty much 1%+ each month to fractional increases, less than we see today in May 2007, well before Northern Rock problems.

House prices were falling in the US before bank problems.

Really2

Mr_Mumble wrote: »

Bulls are celebrating that their timeshare on the Titanic has recovered in value!

Sterling vs other currencies over the past year:



By chucking money out of the proverbial helicopter (QE and negative real interest rates) the BoE have managed to increase nominal prices. Anyone who thinks the value of their property is back to September 2008 levels has been duped.

Lost me on that one, I thought the vast majority earn and pay £'s in this country.
As QE hit borrowers yet. I thought most of the QE was sitting in banks balance sheets doing not a lot.

chucky

Mr_Mumble wrote: »

Bulls are celebrating that their timeshare on the Titanic has recovered in value!

Sterling vs other currencies over the past year:

By chucking money out of the proverbial helicopter (QE and negative real interest rates) the BoE have managed to increase nominal prices. Anyone who thinks the value of their property is back to September 2008 levels has been duped.

celebrating would imply that there is a party, a celebration or even people rejoicing.
the only place this may be happening is in your mind :rolleyes:

as for people earning £££'s and losing value on their UK property - i refer to my comment above

yorksrabbit

House price statistics provided by outfits in the business of talking up the market so as to boost their turnover and profit are as needed by consumers as Custer needed more Indians. When the UK brings in VAT at 19% and interest rates climb again the question of 'national demand' will be as irrelevant then as it was when the crash began: affordability was not sustainable and there's no sign of it being sustainable for a long time yet.

chucknorris

Mr_Mumble wrote: »

Anyone who thinks the value of their property is back to September 2008 levels has been duped.

Yes this is a good point, sorry guys but you are no longer allowed to use the smallest bedroom in your property (if owned), it's not my fault, but as stated your property is not worth what it was so obviously you can't enjoy your home as you did pre-crash.

Does anyone mind if my dog continues to sleep on the lounge floor, he much prefers it to his box in the kitchen.

JonnyBravo

Really2 wrote: »

Lost me on that one, I thought the vast majority earn and pay £'s in this country.

Of course and anyone completely insulated to this can say they've had no effect from it.

Question is who can say that?

Anyone who eats some imported food can't. Anyone who buys an imported car can't etc etc.
In short imports get more expensive in £'s.
Lots of stuff you use day to day is imported.... yet we don't really think about it. eg half the gas for the coming winter is going to be imported