EA's Trying To Control The Market

BettiePage

Rkelly wrote: »

Gordon Brown cannot afford it with the next election in the not too distant future.

So how are 'they' going to stop it?

btloptingout

Rkelly wrote: »

I am under no illusion that house prices wont fall in the future. But when and by how much? It won't be an early 90s style crash thats for certain. Gordon Brown cannot afford it with the next election in the not too distant future.

So how is Gordon Brown going to stop it, wave a little magic wand? You just can't buck the market (though you can delay the inevitable slightly). Don't you think Major "wouldn't have allowed it" if he could?

Brown is highly likely to opt for an Autumn election whilst he still has some feel good factor left. Once he secures that he can hold onto power until 2012. He'll see some rough times through that period (chickens coming home to roost)....but 2012 will be a great year to hold an election with the Olympics - plenty of feel good factor.

ManAtHome

I'm sure that everyone flogging anything would prefer interest rates at 0% and 30% inflation a few years down the road (after they have made their "graceful exit" of course).

A bit like the sub-prime floggers leaving the rest of the world to pay for their 12 pieces...

ManAtHome

nelly wrote: »

i am in frqnce btw and this keyboard is weird some of the letters are in strqnge places

Bleedin ell, that's all we need Nelly+AZERTY...

cells

Rkelly wrote: »

Just like the people who put off buying in 2003 and 2004 because the crash was "Just around the corner"?

i don’t know who though that they where going to crash then, but it makes sense now


interest rates are higher, and prices are higher too.
now BTL is UNPROFITABLE, you cant buy and the tenant cover the mortgage (at least in places i have looked)


so this massive demand from btl has dried up completely, there are no first time buyers since it is too expensive.


the only people buying are those that have recently sold.



it will crash hard within a few years (unless interest rates go down by at lest 1%)

kingkano

Doc_N wrote: »

Or the ones who did exactly that in 1989 and bought a house a bit later for a third less perhaps?


http://www.housepricecrash.co.uk/graphs-average-house-price.php


http://www.youtube.com/watch?v=2t8YTvdYXws

'a bit later' being 3 years of course not 'within the next year'. that was also practically the bottom of the market (prices dropped another 5k after that). Accurately calling that is like trying to catch a dropping knife as they say.

Lomion

cells wrote: »

so this massive demand from btl has dried up completely, there are no first time buyers since it is too expensive.

Got 1 coming around to view my flat this afternoon.

JoJoArmani

Good luck with the viewing Lomion - we have only had 3 FTB view our house in 13 weeks! The others were all "investors" - wish I had their money to "invest" lol!

Doc_N

Yet another story - 'House prices on the brink of a fall?' And this from a property website too, with a vested interest in seeing prices rise.

http://www.findaproperty.com/displaystory.aspx?edid=00&salerent=0&storyid=20727

More and more of these predictions now, with the inevitable effect on confidence in the market. Exactly how the falls happened in 1989, the only differnce now being that people are even further stretched than they were then by rising interest rates.

Just wait till all the buy to let brigade have to start offloading to keep afloat!

smugbear2007

1. credit tightning will bring HPI to a shuddering halt, even if FTB want to spend daft money they wont BE ABLE to....and isnt the ladder fuelled from the bottom up?ie no FTB = people above them cant sell, so they cant buy from people above them etc etc= stagnation. the rest a monkey can figure out.
2. Interest rate rises exacerbate the above.
3 economy not looking as strong as it did, maybe recession on the way which will affect how much people can spend.
1,2 and 3 are economic/lending/spendidng reasons for HPC......lets