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Debate House Prices


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When will the correction come to house prices?

I know some will say there will never be a next correction, but for the more sensible on when do you think it will be?

I can see the bubble getting bigger for years yet before the next correction but I could be wrong, it could be in the next few years.
The thing about chaos is, it's fair.
«13456720

Comments

  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    We have just started to come out of the credit crunch. The correction has already happened.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 5 March 2014 at 11:40AM
    When the economy next hits crisis point.

    When that will be I don't know, but everything is being setup in order to create the problems and we haven't really fixed any of the existing problems. Instead we've bailed out, increased government borrowing, created schemes, created money and kept borrowing rates at record lows.

    The EU problems are not fixed. Greece is on it's 144th bailout or something like that. It's just these things are almost seen as normal now. The US is hitting their debt ceiling quicker and quicker each time it's raised.

    When will the party stop? Don't know. Who or what will stop the music. Don't know.

    What we do then? Negative interest rates? Dunno!
  • The-Joker
    The-Joker Posts: 718 Forumite
    AndyGuil wrote: »
    We have just started to come out of the credit crunch. The correction has already happened.


    Ha does anyone really believe green shoots of recovery this time around? I didnt think so.

    Yes there was a little correction in 2008, so my question is when will the next one be? I would guesstimate sometime between 2016-2020

    or maybe sooner?
    The thing about chaos is, it's fair.
  • The-Joker
    The-Joker Posts: 718 Forumite
    When the economy next hits crisis point.

    When that will be I don't know, but everything is being setup in order to create the problems and we haven't really fixed any of the existing problems. Instead we've bailed out, increased government borrowing, created schemes, created money and kept borrowing rates at record lows.

    The EU problems are not fixed. Greece is on it's 144th bailout or something like that. It's just these things are almost seen as normal now. The US is hitting their debt ceiling quicker and quicker each time it's raised.

    When will the party stop? Don't know. Who or what will stop the music. Don't know.

    What we do then? Negative interest rates? Dunno!


    Spot on Graham.

    When the music stops there is not enough chairs.
    The thing about chaos is, it's fair.
  • purch
    purch Posts: 9,865 Forumite
    Ah Ha.

    Good to see you have remembered the password for this particular username :T
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • racing_blue
    racing_blue Posts: 961 Forumite
    I think correction is a dynamic process. It occurs in terms of migration, population, in residents per unit of housing / multi generational living, employment patterns, other social patterns.

    To what extent do you think price is cause of these changes, to what extent effect?
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 5 March 2014 at 12:16PM
    The-Joker wrote: »
    Ha does anyone really believe green shoots of recovery this time around? I didnt think so.

    Yes there was a little correction in 2008, so my question is when will the next one be? I would guesstimate sometime between 2016-2020

    or maybe sooner?
    The cycle is around 10-12 years. So 2018-2020. However this crunch has been drawn out a bit so a longer downturn can be followed by a longer up turn. So more realistically it would be 2024. Then it will be a slight fall followed with futher increases.
  • mayonnaise
    mayonnaise Posts: 3,690 Forumite
    The-Joker wrote: »
    I know some will say there will never be a next correction, but for the more sensible on when do you think it will be?

    I can see the bubble getting bigger for years yet before the next correction but I could be wrong, it could be in the next few years.

    Why do you ask questions you previously answered yourself?

    This one from May 2012:
    The-Joker wrote: »
    I always said a 50% crash from top to bottom. Depending on how much the currency supply gets abused in the next 3 years then £135K would constitute around 50% real term crash.

    There you have it. 50% off by May next year and houses at 135K. :rotfl:

    How's the gold/house price ratio doing, by the way? :rotfl:

    http://forums.moneysavingexpert.com/showpost.php?p=53060587&postcount=39
    Don't blame me, I voted Remain.
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    A correction appears to be happening now, and it is upwards. Appears houses have been underpriced for a while.
  • BillJones
    BillJones Posts: 2,187 Forumite
    The-Joker wrote: »
    Ha does anyone really believe green shoots of recovery this time around? I didnt think so.

    Green shoots? It's less green shoots, and more huge great forests springing up up and down the land. The green shoots were eighteen months ago, and we are now the fastest growing major economy in the world.

    How can you pretend otherwise?
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