Slow motion Crash?

Mallotum_X

Some like property because it is a solid, visible asset, but David Kauders, a respected economist, investment manager and author, is not among them.

The downturn he describes in his book, The Greatest Crash (£12.99, Sparkling Books), has, he believes, barely begun, notwithstanding the credit crunch and global recession of the past three years.

Kauders thinks house prices rose from the Seventies onwards mainly because the flow of fresh mortgage lending into the system grew more or less uninterruptedly.
Now, he says, we have reached 'system limit'. The supply of credit cannot grow further, but instead will start to dwindle and continue to shrink for decades.
'There will be small rallies, as we see today, where lending appears to be reviving,' he says. 'But these periods will be followed by greater mortgage contraction. And each time, the value of property will fall, reaching a new, lower level. It will be a slow-motion crash - so slow that many commentators will not even see it. They will observe only the shorter-term trends.'

http://www.dailymail.co.uk/money/mortgageshome/article-2047375/David-Kauders-house-price-prediction-Were-set-crash-slow-it.html

Personally this is where I see this going, slow falls until the economy sorts itself out. Quite how long that will be, I would assume 5 years or so, Cant quite see this being a 20 year thing like the author.

But regardless of the content the fact this is in the Mail shows some sentiment has changed.

blisk3

Of course we are in a Slow motion Crash.

Pimperne1

I don't think too many owners would object to a "Slow Motion Crash" - we had been promised House Price Armageddon.

DervProf

Pimperne1 wrote: »

I don't think too many owners would object to a "Slow Motion Crash" - we had been promised House Price Armageddon.

Only by a few. The majority saw "a slight blip", followed by "back to normal". Normal being 10%+ HPI.