Debate House Prices
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Real Terms Prices. Can we ever regain 2007 levels.
andybenw
Posts: 212 Forumite
1. We have had a house price crash. Nominal terms 12%ish.
2. We are now stagnating in nominal terms.
3. Prices are being eroded(falling) 'real terms'.
The above 3 points can all be substantiated from the various indices that pump out their figures every month.
Admittedly there is variation throughout the country and even area by area to a local level.
Obviously we will due to inflation reach 2007 nominal price levels at some stage. This will occur eventually whether or not the bulls or bears are correct in their assumptions.
However, question is will we ever reach 'real terms' 2007 prices again. Fair enough reckless lending has stopped for present. But if it returns surely we will have another bubble. Again no matter whether bulls or bears are correct short term.
Discuss.
2. We are now stagnating in nominal terms.
3. Prices are being eroded(falling) 'real terms'.
The above 3 points can all be substantiated from the various indices that pump out their figures every month.
Admittedly there is variation throughout the country and even area by area to a local level.
Obviously we will due to inflation reach 2007 nominal price levels at some stage. This will occur eventually whether or not the bulls or bears are correct in their assumptions.
However, question is will we ever reach 'real terms' 2007 prices again. Fair enough reckless lending has stopped for present. But if it returns surely we will have another bubble. Again no matter whether bulls or bears are correct short term.
Discuss.
0
Comments
-
I'm fed up hearing about all this 'real terms' rubbish.
The only thing we care about is the price on the sign. Houses haven't dropped a penny in decent areas. Spin it all you like but you know it's true. I know people who are desperate to buy a good family home and can't find one for any amount of money.
The sellers are just sitting it out.We love Sarah O Grady0 -
Salaries are heading back to 2002 levels.
So unlikely is the answer to your question.0
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