Sticky housing
House prices are rising - oh really - I don't think so!
The problem is in a falling market, buyer expectations on price collapse much faster than seller's. The reverse is true in a rising market.
With falling real incomes, interest rates due to rise (as sterling hits a crisis of confidence anytime now due to the Brown debt splurge) consumers moving slowly from spend to save mode and unemployment set to soar; house prices have another 40- 50% to fall from here over the next few years.
When the average house is selling for £75, 000 (in 2011/12) we'll know we've hit the bottom of the house price declines.
Until then - all else is fantasy so stay away if you're a buyer
The problem is in a falling market, buyer expectations on price collapse much faster than seller's. The reverse is true in a rising market.
With falling real incomes, interest rates due to rise (as sterling hits a crisis of confidence anytime now due to the Brown debt splurge) consumers moving slowly from spend to save mode and unemployment set to soar; house prices have another 40- 50% to fall from here over the next few years.
When the average house is selling for £75, 000 (in 2011/12) we'll know we've hit the bottom of the house price declines.
Until then - all else is fantasy so stay away if you're a buyer
posted by Alan Beeson at
23:35
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home