We are not ready for a price correction

ViolaLass

Loughton_Monkey wrote: »

Obviously not! He wants the banks all nice and ship-shape first, by which time the economy will be growing again, all back to work, Stock Markets fully recovered..... and then he'll want his 30% crash.

I didn't know we were allowed to make requests. In that case, I would like a crash in no more than 3 years time, just before I might be buying.

Loughton_Monkey

ViolaLass wrote: »

I didn't know we were allowed to make requests. In that case, I would like a crash in no more than 3 years time, just before I might be buying.

No, no, you misunderstand.

It's not us ordinary people that can make requests. We're talking, here, of the so-called 70% club. They are a sort of clandestine 'elite' who actually control things behind the scenes. THey do this by posting every single snippet of absurd journalism that could loosely be associated with a fall in house prices.

If they could understand mathematics and basic logic, then they might be on to something...

Thrugelmir

Blacklight wrote: »

Yeah, just like last time... and the time before that... and the time before that... and, oh wait no. That's totally wrong.

Like in late 80's bought a property for £88k. Saw it peak at a value of £125k. Yet sold it 5 years after buying it for £88.5k.

Everything is relative as they say.

HAMISH_MCTAVISH

Loughton_Monkey wrote: »

If they could understand mathematics and basic logic, then they might be on to something...

If they could do that, they wouldn't be members of the 70% club.:cool:

westlothian

Inflation will lead to reduction in real terms. Some areas will see price cuts- including the town in which I work where prices have fallen as there are nicer properties in nearby areas cutting price too. I do not think we will see a big crash in cash terms.

But there will be local exceptions. Several Scottish local authority areas will see near double-digit population falls whilst others will see huge population gains- as an example.

Loughton_Monkey

HAMISH_MCTAVISH wrote: »

If they could do that, they wouldn't be members of the 70% club.:cool:

Very true.

Isn't it a sort of "MENSA" in reverse [have to have 140+ IQ]. Their IQ has to be 70 or below (and, importantly, continue to demonstrate it).

Generali

HAMISH_MCTAVISH wrote: »

We've already had the price correction.

Now we're in the "bump along the bottom" phase.

If house prices bump along the bottom then they are slowly becoming more affordable if wages are rising which they are in nominal terms. In real terms, both house prices and wages are falling. Real Wages are falling mostly because of increased tax on consumption.

I don't think there's any big gap between what you are saying and what our Cercopithecinaean friend writes above. It isn't the job of the Government to interfere in price discovery in the housing market. It is, apparently, their job to interfere in the solvency or otherwise of banks.

IMO a housing market is a reflection of the underlying economy not a cause of good or bad economic times. To seek to prop up or undermine house prices deliberately to try to manipulate the economy is to let the tail wag the dog.

Bananas all round!!!

padington

Dont know about you but I'm seeing a massive disconnect between asking prices in london and what the seller will actually take. if £350'00 is advertised the agents are saying straight away they will take £300'000 and thats before i've started negotiating. Wasn't like that 6 months ago. Also when you're searching you never see prices go up, buts lots with price reductions.

Wookster

Generali wrote: »

To seek to prop up or undermine house prices deliberately to try to manipulate the economy is to let the tail wag the dog.

Bananas all round!!!

Yet, that is exactly what is happening. Banks are under enormous pressure from government not to repossess mortgage holders in arrears. Whole rafts of economic policy are being designed to bailout those people who took on more debt (both corporates & households) than they can afford.