UK house prices not set to recover for another ten years, says PWC

Really2

Graham_Devon wrote: »

So which is it?

Can we get a concensus?

The BBC's concensus, as per the article title, is falls. But what's the MSE concensus, just so we know and we can all argue on the same level.

Real term falls are falls after inflation is taken out. So could be nominal rises or stagnation other wise they would say nominal falls.
Unless you get wage inflation you are no closer or could be further away from owning. In the mean time any nominal rises erode the debt (debt is nominal and does not increase with inflation)

Good job we have never been over this before.

chucky

Really2 wrote: »

Real term falls are falls after inflation is taken out. So could be nominal rises or stagnation other wise they would say nominal falls.
Unless you get wage inflation you are no closer or could be further away from owning. In the mean time any nominal rises erode the debt (debt is nominal and does not increase with inflation)

Good job we have never been over this before.

they just don't get it...

if there are 'real' house price falls the most affected people are the wannabe FTB's...

Graham_Devon

LOL this is amusing

StevieJ

If they can't get the history correct what hope for their forecasts :eek:
They must have forgotten about the 90's

After 30 years of almost uninterrupted house pricerises, Britons have piled in £3,500bn into bricks and mortar. Only pension contributions equal the 39pc of total net private wealth that is invested in the property market.

System

Graham_Devon wrote: »

So which is it?






Can we get a concensus?

The BBC's concensus, as per the article title, is falls. But what's the MSE concensus, just so we know and we can all argue on the same level.

Prices continue to rise in money terms but fall in real terms.

I'm not aware of any way I can make this clearer.

Really2

Joeskeppi wrote: »

Prices continue to rise in money terms but fall in real terms.

I'm not aware of any way I can make this clearer.

Still not clear enough for some, like those that think prices fell 40% in the last crash in terms of £'s (nominal) when looking at the nationwide graph.:)

chucky

Graham_Devon wrote: »

LOL this is amusing

Joeskeppi wrote: »

Prices continue to rise in money terms but fall in real terms.

I'm not aware of any way I can make this clearer.

i don't think he does understand

Graham_Devon

Joeskeppi wrote: »

Prices continue to rise in money terms but fall in real terms.

So to sum up. In essense, its called a fall.

We are, after all, all dealing in a currency in real terms. So were back to what the article was saying all aong. Good.

carolt

Joeskeppi wrote: »

Prices continue to rise in money terms but fall in real terms.

I'm not aware of any way I can make this clearer.

You don't need to because nowhere do they claim there will be rises in real terms.

Here's exactly what PricewaterhouseCooopers said:

"our analysis suggests that house prices remain vulnerable to setbacks. "The possibility of a renewed fall in house prices over the next few years, particularly in real terms, cannot be ruled out as mortgage interest rates start to rise again," Hawksworth added."

That's fall, particularly in real terms. NOT a rise, but a fall in real terms.

Really2

Graham_Devon wrote: »

So to sum up. In essense, its called a fall.

We are, after all, all dealing in a currency in real terms. So were back to what the article was saying all aong. Good.

No currency is nominal, if you can count your money in your pocket today it is nominal.
What that would be in 10 years time or 10 years ago is real term. (so if you took out a mortgage today it would be in nominal terms. The house price today would also be nominal)

We have explained how we read it and what "real" means how can you not get it?