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Debate House Prices


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OBR – House prices to rise further 22% by 2014

http://dofonline.co.uk/blogs/the-edge/inflation/rising-house-prices-234324/
The OBR reckons house prices will rise by 5.9 per cent this year, 1.6 per cent next year, 3.9 per cent in 2012 then 4.5 per cent in each of the two following years. Assuming the same rate for the final two years may suggest the forecasters have no view on whether the rate will be rising or falling by then, but they are certain there will be no double dip. Indeed, not only will there be no fall, there will no decline in real terms in any year – not even in 2011, because general inflation is forecast to dip to 1.6 per cent then too.
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Comments

  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 17 June 2010 at 10:37AM
    not unrealistic - worked it out in my head and think that it would be just over 4% compounded until 2014. not a huge amount of HPI so it's is posssible.

    but... anything can happen in 2011, 2012, 2013 and 2014 so it's just a prediction - nothing more...
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What are they up so far this year so far? Just wondering what they are forecasting from now until the end of the year?
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • paul1964_2
    paul1964_2 Posts: 280 Forumite
    And here is my prediction.......


    The OBR will never predict a downturn in house prices. They are a government body and are not in the business of knocking confidence in the housing market.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    paul1964 wrote: »
    And here is my prediction.......


    The OBR will never predict a downturn in house prices. They are a government body and are not in the business of knocking confidence in the housing market.
    Paul can i ask you a question?

    where you born in 1964?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The OBR will revise all its forecasts after the June 22nd budget.

    Deficit reduction measures will impact them materially.
  • paul1964_2
    paul1964_2 Posts: 280 Forumite
    chucky wrote: »
    Paul can i ask you a question?

    where you born in 1964?

    The Midlands. Why?
  • kriss_boy
    kriss_boy Posts: 2,131 Forumite
    House prices aint going anywhere- definately not here in scotland.

    Cuts in the private sector along with already ridiculously overpriced property = no rise.

    Take a look around- me and my friends represent some of the better off individuals in our demograph (late 20s) yet none of us will be able to afford a nice family home for many, many years.
  • Rinoa
    Rinoa Posts: 2,701 Forumite
    kriss_boy wrote: »
    House prices aint going anywhere- definately not here in scotland.

    Cuts in the private sector along with already ridiculously overpriced property = no rise.

    Take a look around- me and my friends represent some of the better off individuals in our demograph (late 20s) yet none of us will be able to afford a nice family home for many, many years.

    You still need a home. Whether you or your landlord buys it is not important, as eveidenced by the recent rises in scottish indices.
    If I don't reply to your post,
    you're probably on my ignore list.
  • kriss_boy
    kriss_boy Posts: 2,131 Forumite
    Sure but prices are driven up my demand.

    Theres a couple of absolute bargains on the market in my town. 3 bed semis with 2/3 reception rooms, about 30% cheaper than they sold for in 2007.... yet there are no takers whatsoever...

    I take all these stats with a pinch of salt.

    The fact remains there is property that cant shift despite being considerably cheaper than it would have sold for 2 years ago.
  • useless
    useless Posts: 404 Forumite
    kriss_boy wrote: »
    Sure but prices are driven up my demand.

    Theres a couple of absolute bargains on the market in my town. 3 bed semis with 2/3 reception rooms, about 30% cheaper than they sold for in 2007.... yet there are no takers whatsoever...

    I take all these stats with a pinch of salt.

    The fact remains there is property that cant shift despite being considerably cheaper than it would have sold for 2 years ago.

    are these houses in a sketchy area? or got other significant problems? There are flats in my town (south east) which fetched ridiculous amounts on a promise of shops and private swimming pool (which never materialised) and they have been gradually dropping in sale price since 2004 - despite what was happening in the rest of the town. Just a thought, I think there will always be some places that buck an upward trend. And unfortunately, probably always some that will buck a downward trend because they are so desirable.
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