Traders predict house prices will fall by 50% in four years

[Turion]

The slide in house prices will continue for at least three years and crush the value of a home by almost 50% in real terms, according to a key index of property price futures. Indications from futures trading on long term property prices shows that the average UK home will recover its current value only in 2017.

http://www.guardian.co.uk/business/2...et.houseprices

"This government says this housing depression will be different from the early 1990s. Yes, that's right. It will be worse."

[Platypus]

The slide in house prices will continue for at least three years and crush the value of a home by almost 50% in real terms, according to a key index of property price futures. Indications from futures trading on long term property prices shows that the average UK home will recover its current value only in 2017.

http://www.guardian.co.uk/business/2...et.houseprices

"This government says this housing depression will be different from the early 1990s. Yes, that's right. It will be worse."

Excellent

[sasguru]

50% is what I predicted last week.
HTH

[threaded]

They're always trying to talk the market up aren't they!

80% minimum is what I say.

[sasguru]

They're always trying to talk the market up aren't they!

80% minimum is what I say.

You are from the atw school of unreal economics and I claim my 5 worthless roubles.

[Bagpuss]

I was watching a house at auction (reasonable area of the south east) that was 40% below prices of the same houses being privately marketed. It didn't sell even at that price. I also noticed a flat nr Ealing with a garage for 119k that didn't sell.

The boom is well and truely over!

[Pickle2]

If an average retail price inflation rate of 4% is included in the calculation

rather bold assumption given current inflation outlook...

[DimPrawn]

50% is what I predicted last week.
HTH

A 50% fall is the same as a 100% rise.

Boomed!

[dang65]

Uh, doesn't this class as one of them "self-fulfilling prophesy" things?

If "traders" pump in endless negative comments about the housing market then people will be unwilling to buy at current prices and sellers will have to drop their prices if they want to ever move house.

It's simply the reverse of what's been happening over the last few years with "traders" saying that property is a rock solid investment, so the market value goes right up along with the confidence.

It's all a bit surreal.

These "traders" are having the same kind of impact on food and fuel prices now as well. They should all be dragged out and shot.

[DimPrawn]

Uh, doesn't this class as one of them "self-fulfilling prophesy" things?

If "traders" pump in endless negative comments about the housing market then people will be unwilling to buy at current prices and sellers will have to drop their prices if they want to ever move house.

It's simply the reverse of what's been happening over the last few years with "traders" saying that property is a rock solid investment, so the market value goes right up along with the confidence.

It's all a bit surreal.

These "traders" are having the same kind of impact on food and fuel prices now as well. They should all be dragged out and shot.

Yep. Make money on the way up and short the market on the way down. As long as prices change, there is money to be made.