Nationwide: House prices up 3.9% in a year

[Martin@AS Financial]

House prices are currently around 12 per cent higher than the lows seen in the midst of the financial crisis, though they are still around 10 per cent below the all time highs recorded in late 2007.



Nationwide: House prices up 3.9% in a year | News | Mortgage Strategy

[CoolCat]

Quantative easy is basically printing money. The governement is printing money and there is no increase in national assets, so each pound in existance is worth less real asset. The government is devaluing the currency. The government is also manipulating interest rates, keeping them artifically low, to steal from savers and prop up mortgage holders. The government also has several market manipulations in place to prop up house prices, special schemes and so much more.

But of course house prices are unsustainably high. The average house is worth no more than 3 or 3.5 times the average salary. Once interest rates go back to sensible levels (which they will have to do), there will be a correction.

Houses have never been a one way bet. A correction is long overdue. And especially with the government doing our own sub prime crisis its inevitable.

[DimPrawn]

As long as the LibLabCon artists can keep up the illusion of wealth based on ever increasing house prices, the proles will vote them in.

[lilelvis2000]

As long as the LibLabCon artists can keep up the illusion of wealth based on ever increasing house prices, the proles will vote them in.

Its all about the boomers. Keep them happy with short term, short sighted policies and you're in.

[Martin@AS Financial]

As long as the LibLabCon artists can keep up the illusion of wealth based on ever increasing house prices, the proles will vote them in.

Dim Prawn - did you see this bit:

"With house prices likely to rise in the second half of the year, now is the time for any homebuyer who can afford a deposit to spring into action.”

Thought you would fall off your chair when you saw this piece of advice from one of the commentators.

[DimPrawn]

There is no difference between a helicopter drop of free money and everyone's house going up in value. It has the same effect. It weakens the currency, creates an artificial boom in spending that has no lasting effect on a country's wealth.

I know a few people that are already planning to withdraw equity from their house again when they go up in a new taxpayer backed boom. New BMW, Disneyland for the kids again like the good old days. After all, it's free money 'innit?

Meanwhile India/China/Far East builds more factories, invests in R&D and expands it's business ventures...

[DimPrawn]

Dim Prawn - did you see this bit:

"With house prices likely to rise in the second half of the year, now is the time for any homebuyer who can afford a deposit to spring into action.”

Thought you would fall off your chair when you saw this piece of advice from one of the commentators.

It's probably good advice if you can wangle this Help for Vote Buying (I mean Home buying), then sell up at a good profit. Why not eh? Saving rates are negative and this scheme is tax payer backed. It's like the old Index Linked Certs NS&I used to sell. Govt backed no lose investing.

Fill yer boots! Free freshly printed money falling from that helicopter.....

[sasguru]

I love it when you poor, immature cretins pontificate about the economy and wish for a "perfect" one rather than making the existing one work for you. Typical IT geeks.

[DimPrawn]

I love it when you poor, immature cretins pontificate about the economy and wish for a "perfect" one rather than making the existing one work for you. Typical IT geeks.

No I agree with you. Govt is basically saying "Keep your money in cash and we will rob you through taxation on the interest coupled with inflation. Stick the money into property and we will reward you with large capital gains, which if you are careful you can shelter from taxation."

Your choice plebs....

[sirja]

Quantative easy is basically printing money. The governement is printing money and there is no increase in national assets, so each pound in existance is worth less real asset. The government is devaluing the currency. The government is also manipulating interest rates, keeping them artifically low, to steal from savers and prop up mortgage holders. The government also has several market manipulations in place to prop up house prices, special schemes and so much more.

But of course house prices are unsustainably high. The average house is worth no more than 3 or 3.5 times the average salary. Once interest rates go back to sensible levels (which they will have to do), there will be a correction.

Houses have never been a one way bet. A correction is long overdue. And especially with the government doing our own sub prime crisis its inevitable.

I think it's a mistake to use the historical 3.5 times salary argument to predict what will happen with house prices. There are some fundamental differences in the market today. For example Buy-to-let, freelancers , foreign buyers. I just don't see house prices in London/SE falling significantly anytime soon. Rather I can see Banks starting to offer even longer term mortgages soon (35/40 year deals) to make the monthly payments affordable. Outside London and the SE it's quite possible that house prices will be more sensitive to interest rate hikes, so we could see a correction in those areas