Interest Rates could hit 6% very soon!

sortofok

Melissa177 wrote: »

Also, Saint - why are you obsessed by me and property programmes?

Actually, I'd love a job presenting a TV programme like that. I used to do quite a bit of TV and radio work, and I love DIY. I'm also opinionated enough to do it I suspect and wouldn't mind telling some moron buyers that they've paid way over the odds for a piece of rubbish!

Do you know what empathy means Mel?

Does one need experience of a situation in order to comment?




Your economic analysis of the housing market is insightful my friend.



Did you think it up all on your own?


Do you know any estate agents Mel?

or lawyers perhaps.




Can the banks really topple the market Mel?

Can they?

how would they do it?


Do you know their secret Mel?

prudryden

The crash will come when they lower rates, not raise them as bizarre as that sounds. Markets of every kind rise on a wall of worry, but crash when everyone is bullish. Always catches us out when you least expect it.

mr.broderick

probably post of the evening.....

sortofok

I concur mr b

This man is wise.




And he knows the banker's secret.

Do not cross him my friend

Romani_Ite_Domum

Melissa177 wrote: »

It is possible that a HPC could come as part of a self-fulfilling prophecy. I'm still thinking about this, so bear with me whilst I work through the logic of this argument.

There have been a lot of HPC stories in the press/on radio recently, which I'm sure will have some owners nervous. Many will be thinking of selling/downsizing perhaps as a result.

So on to the market comes a glut of homes, which then don't shift, and the people on the rung below are nervous about making the next move up. So the prices drop, and house prices "deflate".

However, all these people who are moving have to find somewhere else to move to - be it rental or buying somewhere.

Net: the market will stagnate, and the only people who will move will be the ones who have to.

For a HPC, you'd need a major economic f***up where people were FORCED to sell their properties, at whatever price. I don't foresee that happening.

However, I can see the market stagnating, and slowing down. All this HPC talk will not result in a crash, but a growth slow down.



Feel free to pick holes in my argument. Unless you choose to make silly comments like "our friend" Sortofok.

If the latest house price boom has been part of a self-fulfilling prophecy why shouldn't it also be when the tide turns?

The economy has been built on HPI (Debt) and stagnation has been occurring in many parts of the country.

Stagnation in it's self, could cause prices to drop without there being a "Crash" (something that we have yet defined on this board). I would call a drop in prices of 20-30% in the next 2 years a "correction" in house prices rather than a crash.

I think that is what is needed.

sanfrancisco

Romani_Ite_Domum wrote: »

Stagnation in it's self, could cause prices to drop without there being a "Crash" (something that we have yet defined on this board). I would call a drop in prices of 20-30% in the next 2 years a "correction" in house prices rather than a crash.

Who cares what its called. 20/30% would cause absolute carnage, and would lead to recession.

meanmachine_2

sanfrancisco wrote: »

Who cares what its called. 20/30% would cause absolute carnage, and would lead to recession.

But we've had 20/30% inflation in the last few years in London and FIFTY % in N Ireland, which, for people out of the market has "caused carnage".

You can't have it both ways.

Stop being so greedy.

aardvaak

pinkshoes wrote: »

6% is nothing!! If they get up to 15% then maybe... unless lots of people have been foolishly borrowing to their limit with no back up money... but that would just be crazy!!

15% That would be good like in the early 90's it was nice to earn all that interest

sanfrancisco

meanmachine wrote: »

But we've had 20/30% inflation in the last few years in London and FIFTY % in N Ireland, which, for people out of the market has "caused carnage".

You can't have it both ways.

Stop being so greedy.

Hey mm,

I was questioning why 20/30% was called a correction, and how just a correction will cause a mess.

I am one of the ones who has been born too late, and am priced out.

Bring the crash on.

I can't wait for all the greed to stop and for us all to live again where we care a bit more about each other, and less about money.

thesaint

meanmachine wrote: »

But we've had 20/30% inflation in the last few years in London and FIFTY % in N Ireland, which, for people out of the market has "caused carnage".

You can't have it both ways.

Stop being so greedy.

People "Out of the market" have experienced carnage?

Come on.