We are in a housing bubble

wotsthat

http://www.bbc.co.uk/news/business-25318129

Prof James Mitchell said house prices were overvalued when compared with incomes, raising the risk of a fall at some stage in the future.

Of 13 regions in the UK, he said 10 were currently overvalued.

"The results raise the risk, although not the certainty, that house prices will fall," said Prof Mitchell, although he said it was difficult to say when that would be.

"But a bubble it appears to be and we should all - householders, business people and policymakers alike - be alert to this risk."

However, most other economists believe property prices are still affordable, given very low mortgage rates.

I don't know what I'm more surprised at; the BBC for running a headline based on what they concede is an outlier or the fact the word 'bubble' got a mention and it wasn't posted here.

Graham_Devon

wotsthat wrote: »

http://www.bbc.co.uk/news/business-25318129





I don't know what I'm more surprised at; the BBC for running a headline based on what they concede is an outlier or the fact the word 'bubble' got a mention and it wasn't posted here.

Confused journalist?

Oh, and it was mentioned, by you! The article was released at 2 mins past midnight, therefore, is it really a surprise to you that it wasn't mentioned by anyone before you did!?

I'm surprised at what people find surprising

grizzly1911

Graham_Devon wrote: »

Confused journalist?

Oh, and it was mentioned, by you! The article was released at 2 mins past midnight, therefore, is it really a surprise to you that it wasn't mentioned by anyone before you did!?

I'm surprised at what people find surprising

I saw it last night but couldn't be bothered at that time then just like buses my post and wotsthat's post come along.

I did like the associated picture though. I used to take my kids round a small social housing estate, some distance away, to view how wasteful they were with precious resources.

wotsthat

Graham_Devon wrote: »

Confused journalist?

I thought that to start with but in this case it seems to be a confused economist.

PasturesNew

The trouble is .... while there are people who can afford, or can borrow, the inflated prices ... the rest of us have to suck it up and overpay for cramped/inadequate housing.

You can't just sit it out in case the ponzi scheme continues to roll for another 10 years... or forever.

If a house I could live in costs £200k and I think it's only worth £160k, I have to either walk away (homeless) or stump up.

Loughton_Monkey

wotsthat wrote: »

http://www.bbc.co.uk/news/business-25318129

I don't know what I'm more surprised at; the BBC for running a headline based on what they concede is an outlier or the fact the word 'bubble' got a mention and it wasn't posted here.

I put it down to Graham having been asleep. He missed this one (published yesterday) as well...

http://www.bbc.co.uk/news/business-25306584

Bank of England governor Mark Carney has said he is concerned about the "potential" for a UK housing market bubble, but will tighten lending requirements if necessary.

"There is a history in the housing market of moving from stall speed to warp speed," Mr Carney said. "We want to avoid that."

Meanwhile, a survey suggested house prices will continue "surging ahead".

.....

I was completely surprised that he missed it! So was he by all accounts....

Graham_Devon wrote: »

...I'm surprised at what people find surprising.

... it's only to be expected.

Graham_Devon

Blimey, criticised for posting articles. Criticised for not posting articles.

Mind you, I had rather supposed that articles from the BBC didn't count as they were written by confused journalists (unless it was about a "positive" item...in that case, the journalists had removed themselves from their confused states)....alongside articles from the Guardian and Telegraph not counting due to their bias....Need not even mention thisismoney or the Mail. Seems the BBC's confused journalists are now quoting confused economists, just to confuse things further.

Indeed, not left with much bar the Express, which, bizzarely enough, doesn't leave me much to agree with and post!

wotsthat

Graham_Devon wrote: »

Blimey, criticised for posting articles. Criticised for not posting articles.

Mind you, I had rather supposed that articles from the BBC didn't count as they were written by confused journalists (unless it was about a "positive" item...in that case, the journalists had removed themselves from their confused states)....alongside articles from the Guardian and Telegraph not counting due to their bias....Need not even mention thisismoney or the Mail. Seems the BBC's confused journalists are now quoting confused economists, just to confuse things further.

Indeed, not left with much bar the Express, which, bizzarely enough, doesn't leave me much to agree with and post!

I suppose the upturn in the economy must be limiting your raw material somewhat too.

Graham_Devon

wotsthat wrote: »

I suppose the upturn in the economy must be limiting your raw material somewhat too.

Says he, posting this "raw material" and finding it "surprising" it hadn't already been posted.

This isn't even about the material though, is it?! It's about having a pop under whatever guise neccesary!

"Oh he didn't post it".

"Oh, Groan....he posted it".

wotsthat

Graham_Devon wrote: »

This isn't even about the material though, is it?! It's about having a pop under whatever guise neccesary!

Funny how you immediately thought of yourself when imagining my surprise that this bubble thread hadn't been posted already. Wasn't my intention but I must admit to being delighted at how wound up you've got yourself.

I thought you'd be able to relax more once you bought a HTB house. House buying can be stressful though.

Graham_Devon

wotsthat wrote: »

Funny how you immediately thought of yourself when imagining my surprise that this bubble thread hadn't been posted already. Wasn't my intention but I must admit to being delighted at how wound up you've got yourself.

I thought you'd be able to relax more once you bought a HTB house. House buying can be stressful though.

Funny how you thank, rather than pulling up Loughton when he immediately comes to the very same conclusion.

Of course it was aimed at me. You forget everything else you've written before today about me posting anything with the word bubble in it.

As I said, you'll do anything to have a pop...even pretending it wasn't aimed it me, when it was, and thanking Loughton who explicitly said that very thing.

Have I bought a HTB house now?