Boomed! - House prices surge ahead post Northern Rock

[King Cnvt]

'There is clear evidence that disposable incomes are getting squeezed by higher living costs and the credit crunch and possibility of higher mortgage repayments is making consumers increasingly wary. As a result confidence is slipping.'

b-b-b-but the government says inflation is only 1.8% and is falling like a stone?

Are we being misled?

[Bagpuss]

The best time to have cash, i.e. when everyone else has none.

Back to the time of proper discounts for hard currency
Proper interest rates for savings accounts

Roll on the bust

[sasguru]

Price increases assume purchasers have other peoples money to spend or can afford to spend other peoples money. BoE may have set rates at 5.75, but the banks are setting them significantly higher, the cost of money has significantly risen, the rentable values of properties have fallen in real terms.



Purchaser says yes but Computer says no, so how can the boom continue?


This is the End,
my Buy to let friend, the End,
The End of rises and mug punters,
the end of self declaring street cleaners,
this is the End

Can't wait. It will be time to make a killing

[Bagpuss]

Price increases assume purchasers have other peoples money to spend or can afford to spend other peoples money. BoE may have set rates at 5.75, but the banks are setting them significantly higher, the cost of money has significantly risen, the rentable values of properties have fallen in real terms.



Purchaser says yes but Computer says no, so how can the boom continue?


This is the End,
my Buy to let friend, the End,
The End of rises and mug punters,
the end of self declaring street cleaners,
this is the End

[alreadypacked]

Current Property worth magnitudes (well 2 and a half times at the mo') than mortgage!

Property is only worth what someone has paid you for it.

I had a simular talk with an uncle of mine. Bought place for £55000.00 estate agent says 1.3M, place empty for the last 9 years.

He now says he won't sell for less than 3M

[Bagpuss]

The oprative word being currently

Halifax calculates that someone with a £114,000 fixed rate mortgage will typically see their payments rise by £102 a month to £771.35 by switching to another fixed rate.

- or 1500 a month for a flat in the south east, I didn't notice many renting for that much when I worked in Bucks.

However, some analysts have warned of much higher increases - up to 60per cent - if the borrower is reclassified as a high risk as a result of changes to lending rules in the wake of the credit crunch.

There is mounting evidence that higher interest rates, the rising cost of fuel and modest wage rises are making life tough for consumers.

A new survey of shopper numbers in the high street by analysts SPSL shows the figure in September was down in 8.9per cent on August and by 0.5per cent on the same month last year.

Industry leaders fear the crucial Christmas trading period could be disastrous for many high street stores.

'There is clear evidence that disposable incomes are getting squeezed by higher living costs and the credit crunch and possibility of higher mortgage repayments is making consumers increasingly wary. As a result confidence is slipping.


Major house price falls on the way!

[zathras]

House prices surge ahead as the average London home costs more than £300,000

We're in the money,
We're in the money;
We've got a lot of what it takes to get along!
We're in the money,
The sky is sunny;
Old Man Depression, you are through,
You done us wrong!

We never see a headline
'Bout breadline, today,
And when we see the landlord,
We can look that guy right in the eye .

We're in the money
Come on, my honey
Let's spend it, lend it,
Send it rolling around!

Current Property worth magnitudes (well 2 and a half times at the mo') than mortgage!

[alreadypacked]

0.6 % ah on top of a 2% drop in August looks like prices could fall 10-15% in a year.

The bottom is usually 34% drop form the previous peak.

[BlasterBates]

0.6 % ah on top of a 2% drop in August looks like prices could fall 10-15% in a year.

[NoddY]

Doomed!

1/the article title is... House prices suffer biggest drop in six months as Bank holds rates at 5.75pc

2/Britain's biggest mortgage lender, the Halifax, said house prices fell in September by 0.6per cent on the previous month, with further falls now in the pipeline.

Looks like the Daily Mail have updated their site since this morning.

We've gone from Boomed! to Doomed! in less than 6 hours. You've got to be quick flipping houses these days.

[Bagpuss]

House prices surge ahead as the average London home costs more than £300,000

http://www.dailymail.co.uk/pages/liv...n_page_id=1770

"Average house prices in London have risen above £300,000 for the first time"

...


"The market appears to have shrugged off last month's Northern Rock debacle..."


Halifax: "there is no concrete evidence that the global credit crunch is having an impact on the housing market" ... "not expecting there to be a widespread drop in house prices."



Boomed! Forever and ever. Amen!

1/the article title is... House prices suffer biggest drop in six months as Bank holds rates at 5.75pc

2/Britain's biggest mortgage lender, the Halifax, said house prices fell in September by 0.6per cent on the previous month, with further falls now in the pipeline.

[_V_]

It's a good point. If the market for "normal" property has stagnated, then the only property that is actually selling is the top end of the market bought mostly by non-doms using offshore tax free money. Hence the "average" price goes through the roof.

Think, in a few months, only one house will sell, and it will be a Russian buying a £10M house in London and the headlines "Average property in London now £10M".

[alreadypacked]

House prices surge ahead as the average London home costs more than £300,000

http://www.dailymail.co.uk/pages/liv...n_page_id=1770

"Average house prices in London have risen above £300,000 for the first time"

Halifax: "there is no concrete evidence that the global credit crunch is having an impact on the housing market" ... "not expecting there to be a widespread drop in house prices."



Boomed! Forever and ever. Amen!

We all know the rich are getting richer.

If the volume of sales has slowed, and Joe Bloggs is not buying, the average price is going to rise.

The Halifax need to spin this, they have seen what happened to NR.

[BlasterBates]

...and NR's shares sent up by 10%.

[NoddY]

House prices surge ahead as the average London home costs more than £300,000

http://www.dailymail.co.uk/pages/liv...n_page_id=1770

"Average house prices in London have risen above £300,000 for the first time"

...


"The market appears to have shrugged off last month's Northern Rock debacle..."


Halifax: "there is no concrete evidence that the global credit crunch is having an impact on the housing market" ... "not expecting there to be a widespread drop in house prices."



Boomed! Forever and ever. Amen!