Fitch bullish on UK property

macaque_2

.... by 70% club benchmarks

House prices are still overvalued by around 25%

http://www.citywire.co.uk/money/uk-house-prices-still-25-overvalued-says-fitch/a521510?re=15742&ea=174368&utm_source=BulkEmail_Money_Daily&utm_medium=BulkEmail_Money_Daily&utm_campaign=BulkEmail_Money_Daily

the_flying_pig

Fitch probably moonlight as EAs in their spare time.

Pimperne1

The last time Fitch forecast a 20% drop was in October 2009. Both Nationwide and LR are higher now than they were then (and Halifax which is a bit lower is pretty unreliable, even they admit that).

http://www.thisismoney.co.uk/money/mortgageshome/article-1681350/Fitch-House-prices-will-fall-another-20.html

Graham_Devon

Pimperne1 wrote: »

The last time Fitch forecast a 20% drop was in October 2009. Both Nationwide and LR are higher now than they were then (and Halifax which is a bit lower is pretty unreliable, even they admit that).

http://www.thisismoney.co.uk/money/mortgageshome/article-1681350/Fitch-House-prices-will-fall-another-20.html

Probably why they say still overvalued.

Pimperne1

Graham_Devon wrote: »

Probably why they say still overvalued.

Well they keep saying it but nothings happening.

Le_Chuck

Pimperne1 wrote: »

The last time Fitch forecast a 20% drop was in October 2009. Both Nationwide and LR are higher now than they were then (and Halifax which is a bit lower is pretty unreliable, even they admit that).

http://www.thisismoney.co.uk/money/mortgageshome/article-1681350/Fitch-House-prices-will-fall-another-20.html

the report isn't predicting a drop, just saying that they're over priced by 25%, which they are.

Graham_Devon

Pimperne1 wrote: »

Well they keep saying it but nothings happening.

Keep saying it?

You've just said the last time they said it was 2 years ago?

Pimperne1

Graham_Devon wrote: »

Keep saying it?

You've just said the last time they said it was 2 years ago?

I said the last time they forecast a 20% drop. Anyway if they aren't forecasting a drop then they're not overpriced.

Pimperne1

Le_Chuck wrote: »

the report isn't predicting a drop, just saying that they're over priced by 25%, which they are.

http://www.ft.com/cms/s/0/6209faa4-b34d-11de-ae8d-00144feab49a.html#axzz1X7E71my2

"The recent gains in UK house prices are likely to prove only a temporary respite before a further steep fall next year, according to Fitch, the global ratings agency".

Link not working so this was the headline from FT on 7 Oct 2009:

Fitch forecasts steep house price falls

"By Daniel Thomas, Property Correspondent
Published: October 7 2009 15:41 | Last updated: October 7 2009 18:48

The recent gains in UK house prices are likely to prove only a temporary respite before a further steep fall next year, according to Fitch, the global ratings agency".

Thrugelmir

Pimperne1 wrote: »

Well they keep saying it but nothings happening.

While prices themselves may not have changed significantly. The game is in play so to speak. As low interest rates have met the headwinds of squeezed disposable income which has resulted in stagnation. Which will return first, sound economic growth resulting in real wage increases or higher interest rates as credit contraction tightens.

Either way not a time to be highly leveraged. Cash is king !