House Prices Soar By 10%

IveSeenTheLight

dopester wrote: »

You can't have a recovery without a crash - and we didn't have a crash. We had a partial mini-crash then steroid-money and rescue schemes to get values pumped back up.

The house price correction of late 2007 / 2008 resulted in a similar percentage drop to that of the 90's I recall.

nembot

No it didn't, adjusting for inflation the 89/96 prices from peak were down 35-38%

Get your facts right, rather than just speculating like you usually do.

Yakubu22

phew...I thought we were still in the middle of the worst depression for 3 generations. Looks like I missed the boat for the 4th time running.
Guess I'll never be able to buy because everyone else is so rich with their HPI.

Euphoria1z

are we at average peak of 2007 yet?

ess0two

nembot wrote: »

No it didn't, adjusting for inflation the 89/96 prices from peak were down 35-38%

Get your facts right, rather than just speculating like you usually do.

Lets have your documented facts,before we ponder ISTL's.

IveSeenTheLight

nembot wrote: »

No it didn't, adjusting for inflation the 89/96 prices from peak were down 35-38%

Get your facts right, rather than just speculating like you usually do.

Excuse me!!!!
Please back up your facts
Look at this data
http://www.lloydsbankinggroup.com/media/excel/080410HistoricData.xls#'All(ANN)'!A1 (Tab 6)

1989 UK price = £68,946
1996 UK price = £64,441
1995 UK price = £61,666

That's a 10.5% drop

Being more accurate: -
http://www.lloydsbankinggroup.com/media/excel/080410HistoricData.xls#'All(ANN)'!A1 (Tab 2)

1989 Q3 UK price = £70,233
1995 Q4 UK price = £61,127

That's a 12.96% drop

I don't speculate, I use fact based data.

I recalla post before where another index showed approx 18-20% (IIRC) let me dig out that data I used.

Please feel free to show your data.

ess0two

Cmon nembot lets have it,although ISTL has just shot you down big time.:rotfl:

IveSeenTheLight

IveSeenTheLight wrote: »

I recall a post before where another index showed approx 18-20% (IIRC) let me dig out that data I used.

Please feel free to show your data.

Here's the post where it worked out at 20%
http://forums.moneysavingexpert.com/showpost.php?p=25766339&postcount=34

so nominally this correction was larger with a similar drop in percentage terms

dopester

chucky wrote: »

it's absolutely spot on - it would be political suicide to remove these and push the mood of the country back to 2008.

people say that they will have no choice. however, the worse choice for any government would be to remove it.

Wouldn't people have held that 'political suicide' outlook prior to the late 80s/early 90s house price crash? And yet it still occurred.

I know quite a few home-owners who want the crash, who don't care about the value of their own home falling... to shake out those who are very over-extended in property and bring allow the market to operate without as many artificial influences involved in trying to maintain prices, as there are in this market. If only for the sake of their younger children's (non-home-owning) prospects going forwards.

Yes some of the more innocent types get hurt in the process, who believed in bubble prices were more of less able to remain stable, or were sucked into SO... but a crash hurts people who've made the wrong decisions - you can't protect everyone from their own decisions even if Gordon sings the praises of SO - just as allowing mega bubble inflating to extremes causes a lot of problems for some of the younger cautious non-owners who refused to buy at prices they felt didn't represent value due to prices/correction risks.

brit1234

chucky wrote: »

you may say inflation but it's not really valid - inflation is hitting us through the rising prices of imported goods. raising interest rates does not affect this - the pound value would. this is the more likely way to deal with imported inflation.

:rotfl:

Am I reading the above right?

Sorry but you really need to check what you have written, it makes you sound a little foolish or naive.

Yes we have a lot of inflation through imported goods, the main one is oil. Now more expensive oil/energy effects effects home grown.made items through higher assembly costs and transportation costs making home grown inflation higher as well.

Raising interest rates does effect this despite what you say as this is the method the BOE uses to strengthern the pound. Stronger pound and the better the purchasing power of it and the less foriegn goods cost including oil.