Halifax HPI October 2010 +0.6%

des_cartes

Although falling house prices are good for people buying properties and for the economy generally, i am concerned that falls of this magnitude, if replicated in future months, may panic those with houses and in particular those with high mortgages into behaviour that is incompatable with economic recovery. If the rate of falls in house prices becomes vastly more than the rate at which those with mortgages can pay off debts then the decline in spending will become too large. The government want house price reductions but not too quickly. Lower house prices are part of the plan to change the UK economy to one that relies on producing wealth through exporting and manafacturing rather than the artificial wealth from illusionary house prices. The transition however needs to be manageable, probably 10% a year decline in house prices over 3-4 years would probably be the governments desire. 30% over one year sounds good but could lead to mass panic amongst the heavily mortgaged, a collapse in spending and possibly panic in government preventing an orderly transition from ahigh house price, high consumer debt economy to a lower house price, lower consumer debt economy. The transition from the fake economy where people relied on increasing house prices to fund their lifestyles to a real economy where the UK pays it's way in the world and people earn real money to finance their lifestyles cannot happen overnight.

torontoboy45

I can't resist bumping this up - as a warning to newbies that time-wasting, misleading threads such as this are just as pathetic as the 70% fall claims.

forex's credibility now lies in ruins - how could they get it so spectacularly wrong?

Graham_Devon

HOUSE_PRICE_CRASH_GHOULS wrote: »

Oh dear. Crash over. Oh yes the crash that never happened is now officially over. Keep waiting bears keep waiting because you've got landlord mortgages to finish paying off. http://www.forexfactory.com/calendar.php

CloudCuckooLand

Oops......

ILW

THE_GHOULISH_CONSIPRACIES wrote: »

No reason to laugh. 1 months statistical anomilie doesn't make a crash you ghouls.

It is a step in the right direction though.

dopester

des_cartes wrote: »

i am concerned that falls of this magnitude, if replicated in future months, may panic those with houses and in particular those with high mortgages into behaviour that is incompatable with economic recovery.

Sounds very much like you're describing a deflationary crash there, des_cartes.

I hope you might have the same sort of concern for those of us who refused to take on massive mortgages (recoiled from the dangers) and saw houes prices continue to rise. It works both ways.

Aberdeenangarse

THE_GHOULISH_CONSIPRACIES wrote: »

No reason to laugh. 1 months statistical anomilie doesn't make a crash you ghouls.

I don't won't to be rude mate, but I don't think you're going to be around for long?

ILW

Aberdeenangarse wrote: »

I don't won't to be rude mate, but I don't think you're going to be around for long?

Not with that name anyway.

ILW

THE_GHOULISH_CONSIPRACIES wrote: »

I'm new here so maybe you'd care to explain.

At least you have a sense of humour.

FATBALLZ

HOUSE_PRICE_CRASH_GHOULS wrote: »

Oh dear. Crash over. Oh yes the crash that never happened is now officially over. Keep waiting bears keep waiting because you've got landlord mortgages to finish paying off. http://www.forexfactory.com/calendar.php

You plonker.