House prices wont Crash/interest rates wont rise...

B_Blank

WHich makes me very sad but there it is...

Those firm in the belief that house prices will crash are living in crazy world, there are too many powerful people who dont want this to happen - not least the government.

Interest rates wont rise as much as expected this year (or as often) for exactly the same reasons. The banks and the government need an extended peroid of low rates to allow themselves and the overindebted population a chance to pay down their debts to more manageable levels before rates rise. Thus rates wont rise untill they start to go up slowly at the end of this year or maybe next year.

The future of house prices will be simple, they will continue the current trend of stagnating/going down very slowly for the next 5 years, and beyond that who knows. Houses will become more affordable compared to wages but they wont get smaller in nominal terms (or they might very slowly).

There seems to be alot of chat on here and on HPC about there being an "inevitable crash" when it simply wont happen.

Is it fair that house prices are so high? No. Is it good for 95% of people (No - except those who bought 2006-2007 and some landlords). Will house prices crash? - not a chance in hell.

Those of you who seem to have talked yourselves into a house price crash are deluded, and those of you who love the current high prices are either naive or lucky to be one of the very few who truely benefits.

Add to this the fact that this government seems intent on driving through NIMBY legislation which will create a significant housing shortage in the UK and it is easy to be sceptical that even a real terms fall in house prices (by them stagnating for many years) will come to pass. Espicially as the UK population is projected to grow over the next few years quite significantly.

It sucks, I have no pleasure in pointing out why all the House price crash brigade are all suffering from wishful thinking, but thats the reality I am afraid.

Its bad for the young people because the fact that the prices wont correct themselves will continue to shift wealth to the people currently owning property - i.e. overwhelmingly 35+.:o

smamst

"Those firm in the belief that house prices will crash are living in crazy world"

Well we do live in a crazy world, there is nothing at all sane about the world we live in at the moment, so by that very statement, it's goodnight Vienna on house prices.

and fair play to you at least you have some better imagination than the Chucky's sock puppets.

Sibley

The OP poster has got it right.
There is nothing else to say the post is spot on.

dlk

The housing shortages can only get worse with the lack of building taking place. This is being made worse by the lack of bank lending to businesses. One example is a friend of mine who owns a medium size building company. They own some land on which new housing was planned. Unfortunately the bank won't lend until the housing is completed (even though only borrowing a reletively small amount in relation to the total costs) which is pretty much when they don't need the loan anymore!

CloudCuckooLand

B_Blank wrote: »

there are too many powerful people who dont want this to happen - not least the government.

It is strange that those powerful people failed to stop the 2008 'crash/correction', then.

Its a (fairly) open market. Anything can happen. The extremes most likely will not. But no-one knows for sure.

Asheron

House prices will Crash, interests rates can't rise because it will increase unemployment

Sibley

It is strange that those powerful people failed to stop the 2008 'crash/correction', then

Where was this crash then? Mars?

doire_2

Ohh look sibley freaking about about a rise in IR. Now where have i seen that before?

shupufski_2

I think the events in North Africa/Middle East should serve as enough warning that the future will be full of surprises.

Nothing is certain in the housing market and no one should be making statements that a crash definitely won’t happen.

It may happen, it may not.

the_flying_pig

The OP contains exactly the same number of useful insights as it does apostrophes [try holding down shift & one of the other keys such as @, m8].

CloudCuckooLand

Sibley wrote: »

Where was this crash then? Mars?

Short memory some people. -16.7% peak to trough.

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=E&W-ALL&s=01 September 2007&e=01 June 2009&t=1[/IMG]