Debate House Prices


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70% club predicts a flood of positive news storys

The 70% club is predicting an avalanche of upbeat predictions about house price rises over the next few weeks. These will be primarily aimed at calming the housing market in an effort to prevent panic selling.

Why could there be panic selling?
  1. House prices are too high
  2. Incomes and access to credit are falling
  3. The rental market is set to lose £10s billions
  4. Interest rates can only go in one direction
When the recent credit crunch started to close in on us, we saw an avalanche of upbeat storys about future house price rises. On that occassion, tax payer's money was used to bail out the property market. This time however, the public purse is empty.

For a more realistic picture of our current situation, please read this:

http://www.moneyweek.com/investments/property/quantitative-easing-uk-property-house-prices-04504.aspx

Comments

  • Sibley
    Sibley Posts: 1,557 Forumite
    Ninth Anniversary Combo Breaker
    I think the guy who wrote that is way off the mark. Probably a renter himself.

    This comment summed it up perfectly and made me laugh.
    House prices will never crash - just stay about the same that's all. Us homeowners will never sell at less than what we paid for our properties and so if we're not selling at a loss then there's no chance you can buy at your fairytale 'pound shop' prices. The market will just stagnate that's all. Those of us that own houses will just stay put and live in them. Those that don't own houses will just continue to rent.
    :rotfl:
    We love Sarah O Grady
  • treliac
    treliac Posts: 4,524 Forumite
    macaque wrote: »

    Why could there be panic selling?
    1. House prices are too high
    2. Incomes and access to credit are falling
    3. The rental market is set to lose £10s billions
    4. Interest rates can only go in one direction
    When the recent credit crunch started to close in on us, we saw an avalanche of upbeat storys about future house price rises. On that occassion, tax payer's money was used to bail out the property market. This time however, the public purse is empty.

    For a more realistic picture of our current situation, please read this:

    http://www.moneyweek.com/investments/property/quantitative-easing-uk-property-house-prices-04504.aspx


    All dopester's ships will soon be coming in. :)
  • Heyman_2
    Heyman_2 Posts: 1,819 Forumite
    Dear Macaque,

    I thought I'd better let you know that I was trying to login to my account at the 70% Club website and it appears the site has been hijacked by some Chocolate club -

    http://www.seventypercent.com/

    Could you let me know if this is intentional and if the 70% club has indeed gone off in a new direction and that the monthly meetings will now be monthly tastings?

    Thanks
    H.
  • N1AK
    N1AK Posts: 2,903 Forumite
    Part of the Furniture 1,000 Posts
    Sibley wrote: »
    This comment summed it up perfectly and made me laugh.

    It's the same 'sound bite' friendly but utterly vacant nonsense you've been selling on here for months. The argument if true would mean house prices never crash, given that we have seen numerous, including a reasonably sized one just recently it makes you look embarrassingly single minded.

    What I hadn't thought of before is how your contradictions on renters and owners. You keep saying that people who rent should 'get on with their lives' rather than waiting for price falls, yet suggest that people who own will (by your logic) 'put their life on hold' and refuse to sell even though they want to move.

    You'd think as someone who spends so much time arguing against price falls you'd have come up with a couple of remotely water-tight arguments by now.
    Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...
  • macaque wrote: »
    1. House prices are too high
    2. Incomes and access to credit are falling
    3. The rental market is set to lose £10s billions
    4. Interest rates can only go in one direction

    1 - In principle, agreed. But I would ask, too high for what?
    2 - In relative terms, it appears some incomes will fall, but not all. Personally I feel that access to credit is not falling, but credit is more expensive than it has been in recent history. The impact of this remains to be seen I feel. Will credit become more available as the economy steadies a bit more?
    3 - Is it? I don't think the rental market is going to lose that amount. Some areas may see fallling rents. Other areas may become even more desire-able, & therefore see a rise.
    4 - Agree, kind of. The important question is when.
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Sibley wrote: »

    This comment summed it up perfectly and made me laugh.

    :rotfl:


    You wrote it you daft muppet!

    Is this how desperate you are getting now sibley? Quoting a quote that you wrote but passing it off as someone else?
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