House prices will not recover to their 2007 peak until 2024

homelessskilledworker

House prices will not recover their pre-crisis peak until 2024, according to analysis by PricewaterhouseCoopers. The warning that the UK housing market is only at the start of a 17-year, inflation-adjusted slump came as the accounting firm predicted that the economy will flat-line this year before growing just 1.7pc in 2013. Average house prices will have bounced back to their 2007 high in cash terms by 2017, PwC said, but will need another seven years to catch up with inflation. By 2020, headline prices will be up 30pc but still 7pc below their real terms peak.

mystic_trev

The housing market is stuck in ‘the doldrums’ and prices will not return to the pre-crisis peak until the middle of the next decade, a top firm of accountants warns today.

PricewaterhouseCoopers suggest that Britain’s 18million homeowners are only five years into a punishing 17-year slump.

http://www.dailymail.co.uk/news/article-2172322/House-prices-stuck-17-year-slump-says-PricewaterhouseCoopers.html

What do the 'Sages' on here think? Using their criteria I reckon we're about halfway through with another five years to go, not another twelve!

System

They seem to be predicting 2007 crazyness all over again in 2027, personally I don't ever see that happening.

Long term predictions are a waste of time imo.

mystic_trev

http://www.dailymail.co.uk/news/article-2172322/House-prices-stuck-17-year-slump-says-PricewaterhouseCoopers.html

edit - and here

http://www.telegraph.co.uk/finance/economics/houseprices/9393170/Twelve-more-years-for-house-prices-to-recover.html

Using their criteria, I reckon we're halfway through with another five years to go, not another twelve!

IveSeenTheLight

homelessskilledworker wrote: »

House prices will not recover their pre-crisis peak until 2024, according to analysis by PricewaterhouseCoopers. The warning that the UK housing market is only at the start of a 17-year, inflation-adjusted slump came as the accounting firm predicted that the economy will flat-line this year before growing just 1.7pc in 2013. Average house prices will have bounced back to their 2007 high in cash terms by 2017, PwC said, but will need another seven years to catch up with inflation. By 2020, headline prices will be up 30pc but still 7pc below their real terms peak.

Very plausible. Especially with the economy as it is.

Interesting that the think that it will flat line before growing slowly in the next few years.

Looks like the bottom was 2009 if this prediction turns out to be true

Graham_Devon

It's difficult to take any long term predictions with anything but a pinch of salt.

The criteria for me would be to ask "have we fixed any of the problems that led to the state we are now in".

My answer would have to be no. We've just reduced interest rates, borrowed more, and created around £500bn worth of sterling (QE + the latest version of QE they didn't want to call QE).

Government's keep u-turning, and if theres an unexpected windfall, it seems to be spent willy nilly on vote buying quicker than they can figure out just how much there is.

If you look at the Eurozone, they just keep extending the resolution. For example, Spain have just got more money, but had yet another extension, rolling the problem into 2013. By 2013, are we sugesting Spain won't have borrowed any more money, but will be on track to actually start fixing their issues? My best is they will have borrowed more.

Until we, and this includes the EU block stop simply creating and borrowing more money, we can't fix the underlying issues. To fix the underlying issues we need to start paying debt down, not increasing it with sums unheard of 5 years ago being simply drempt up weekly and loaned around the block.

So yes, I believe it will be a LONG time if these plans actually work, and prevent a full on crash.

It's interesting watching the US at the moment, as they did seem to have a crash which was more aligned with expectations and haven't done as much kicking of cans.

moneyinmypocket

HKW I bet you took a lot of glee in posting this

moneyinmypocket

Even if this was true home owners shouldn't fear - sit tight, prices ate to rise soon again still much better than renting

IveSeenTheLight

moneyinmypocket wrote: »

HKW I bet you took a lot of glee in posting this

Why?
It's not predicting that prices will lower?

homelessskilledworker

moneyinmypocket wrote: »

HKW I bet you took a lot of glee in posting this

Did I

And what evidence do you base that on?

moneyinmypocket

The headline is a dull one - when you read facts as you pointed out its not that bad - I just new when I read this this morning hkw or graham would have some morning wood over the headline