House Price to surge + Unemployment to surge - how does that work??

[Berberis]

How do you account for 2010 then, prices have been falling again, but the economy isn't in recession.

 

Cyclone mate, read what I wrote, you will see I have quoted the Annual Change and that is still up.

[vinyl]

And true to form .......................wrong again!

 

Yes you were but I think folk on the forum are used to your lies by now and make allowances.

[Obelix]

Hogwash. There's plenty of supply, not enough buyers.

 

there are currently too few buyers chasing too many properties.

 

I wouldn't place too much store in a Daily Mail headline. "Experts predict" do they? Probably the same experts that failed to predict the downturn.

 

Interests rates are likely to be going up in the summer. That's hardly going to help house prices is it?

 

No there are plenty of people wanting to move house. That's not an oversupply because if someone sells they are also buying.

 

Houses are not produced by sellers onto a market. (except first time builds). If someone sells a house, they almost certainly will also be buying a house. Hence the total *supply* of houses is zero in that situation.

[wednesday1]

Yes you were but I think folk on the forum are used to your lies by now and make allowances.

 

 

 

I understand your bitterness no one likes to be proved wrong.

[Cyclone]

Cyclone mate, read what I wrote, you will see I have quoted the Annual Change and that is still up.

 

It isn't though is it.

 

http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp

 

Saying it doesn't make it so.

[chem1st]

But it wont that's the point. Demand for houses is very inelastic and so is supply due to the capital costs. People who become unemployed dont stop living in houses - although they may not pay for them housing benefit, social/council housing etc will so the demand for housing remains more or less the same.

 

But when more housing benefit has to be paid out, and if housing benefit stays the same or rises, then there has to be losses elsewhere in the economy, to pay for the housing benefits.

 

Initially that falls on the taxpayer, but then he has less to spend, and the parts of the economy he would have spent his money then suffer, and job losses increase. And the amount of people claiming housing benefit rises further.

 

It cannot be sustained without destroying the economy.

 

The Buy To Let brigade are nothing but a parasite sucking the wealth from the economy at detriment to the whole of society.

 

These rentiers are like a plague upon our fine country. And whilst they are been kept by the state via housing benefit, then the economy can not grow, not even maintain its current capacity, production falls, we'll struggle to cope with our debt, and meanwhile government spending will rise (driven by housing benefit - the benefit that enriches landlords).

 

I for one will lose no sleep when they suffer losses, because they must, if the rest of society is to have any chance of prosperity! these people must be financially wiped out ASAP.

 

We are now in a position where we will have to inflate ourselves out of the problem. Everyone's wages and living standards shall fall because of these parasites.

[Vague_Boy]

According to todays newpaper, the house prices are expected to surge this year.

The owner of the Daily Express, Richard Desmond, has a £500 million property portfolio.

 

This may (just may) explain the proliferation of unrealistic headlines in his newspaper.