House prices 'face 2008 slowdown' -Nationwide (BBC)

BettiePage

House prices 'face 2008 slowdown'

Nationwide predicts large regional variations next year

House price growth is set to stall next year as the market witnesses a "significant slowdown", building society Nationwide has warned. It predicts that annual house price inflation in the UK will slump from its current level of 9.7% to 0% by this time next year.
Nationwide blames a slower economy, stretched affordability, tighter credit conditions and lower buy-to-let demand. Almost all surveys suggest the market has been cooling since the summer.

http://news.bbc.co.uk/1/hi/business/7097813.stm

sarkin

It looks like sentiment may be changing.

dannyboycey

When the eternally over-optimistic Nationwide 'expect a slowdown' - you know something big is about to unfold.

Get the cigars out! :beer:

poppy10_2

0% House price growth and 4.2% inflation rate = house prices falling by 4.2% in real terms. And that's an optimistic forecast.

Romani_Ite_Domum

dannyboycey wrote: »

When the eternally over-optimistic Nationwide 'expect a slowdown' - you know something big is about to unfold.

I wonder how many analysts it took to come up with an exact figure of 0% YOY? Perhaps they always round up negative numbers to zero?

warrend

dannyboycey wrote: »

Get the cigars out! :beer:

for what exactly???? The economic slowdown and potential resession?

pamaris

warrend wrote: »

for what exactly???? The economic slowdown and potential resession?

No, sanity/ equilibrium returning to the market. No one wants a recession but we've made our own bed; now we have to lie in it.

JohnInDebt

warrend wrote: »

for what exactly???? The economic slowdown and potential resession?

As the house prices come down the rungs of the 'ladder' become a lot closer enabling people to buy a bigger and better home.

warrend

Unfortunately this wouldn't be happening unless there was a general economic slowdown, whilst the rungs on the ladder get closer together - people will find that their wages will still not increase and potentially decline in real terms as inflation and a weakening of the pound that will follow will push up energy and import prices, whilst doing comparatively little for manufacturing (as there is very little left).

pamaris

The slowdown is coming whether we find it palatable or not, and it will be like any other recession/ slowdown in that some people will do just fine, and some will lose their jobs. Even in a recession the vast majority of people are employed. We can only hope to be part of that majority.

dannyboycey

warrend wrote: »

for what exactly???? The economic slowdown and potential resession?

The implications of things carrying on as they have done would be a lot worse. An ever increasing gap between rich and poor / haves and have-nots is not something to aspire to.

When hardworking young teachers, nurses and doctors cannot afford to buy their first home without taking huge financial risks, that is a clear indication that you are living in a country which is in a complete mess.