Well with government printing money in a desperate measure to try and stop the economy, then we could see sky high interest rates as a result as printing money basically IS inflation.

If you think more currency in the system, but pretty much finite number of assets, then it will take more money to buy each asset, so price goes up - but really price is the same and value of each pound is falling.

What's worrying is that if Sterling continues to slide, then the price of imports like oil (which is priced in dollars) will rocket - we get 'hyperinflation' and as a result interest rates could go through the roof (well over 20%)

Defo going to be an interesting few years ahead!...

 

It is certain that the Interest Rate will be much higher within a few months ..... remember that it was only 5 months ago when Interest Rates were 10 times higher than they are today!

It will not take much at all to see rates shoot up well past 5%

This is what could shoot the new house buyers down - borrow now at 2.7% .... but watch payments go up to about 9% by winter 2009. That will kill the housing market once more (and why we need the FSA 3x Salary Limit implementing now).

 

That said, wherever happens in the US we will follow as night follows day - and it's starting to look up in the US housing market:-

Hope springs at signs of life in US housing market - Telegraph

 

Can't see that happening in the next 12-18 months

 

If you have got the Mazoola SSuP, and I bet you are a bit of a Croesus anyway , I think you should buy one when you find a good one and I don't think you will lose in the long run.

Les

 

The Official Government figures show a continued fall .... but, they are 2 or 3 months out of date:-

BBC NEWS | Business | House price decline accelerates

 

Maybe 2 or 3 months out of date, but unlike Nationwide/Halifax who use a sample, this is all the data. So for me it's the most accurate.

 

I'm looking for a new pad and still laughing at most of the asking prices. Saw a place today that was next door to a bigger, better house that has just sold for £xxxxxx, and they are asking £40k more than next door's sale.

I informed the agent that this place was about £75k over its market value and they agreed it was; but said the seller was holding out for a near asking price offer.

Best of luck to them.

 

I am beginning to read items about interest rates maybe going up !!!!!

Hell no .What are they thinking of .To control inflation its said .

I wish it was a subject with one outcome so we all could have an idea how things will develope ,but unfortunately every expert has a different opinion of whats going on and what answers are needed .

I might stop reading articles on the subject I think .

Matty wheres that pic of my head in the sand !!!!!!

 

CPI is still over 3%. Inflation is like toothpaste.

 

The figures dont include prices from houses sold at auction, so they're not all that accurate really - average price falls are even steeper in reality.

 

Well, property I've just looked at today ..... had THREE Offers on it yesterday! It's been on for a few days.

Priced right and they are selling really quickly!

 

Indeed, Pete.

I'm scouring the area I'm looking to move to (Surrey), and properly priced houses, with realistic sellers are selling/getting good offers in days.

The rest just remain for sale with people dirtying their carpets and wasting their time.

 

House Prices UP 0.9% according to the Nationwide!!

BBC NEWS | Business | 'Surprise bounce' in house prices

This is what I have been experiencing ...... the market is very active and bouyant in well priced properties and better selling prices are being achieved on these places.

Overpriced stuff is still sitting looking more and more pathetic.

 

It's a good sign!

 

You may have missed the boat SSuP!

Les

 

I certainly think things are stabalizing in the housing market .
Last couple of weeks seem to suggest this .
And dont forget the "Sunshine Factor" .....

 

I Know!!

Why has Gordon Brown done such a good job at turning the worlds economy around???

 

Or it's a blip.

Unemployment on the up and rising, prices still out of reach of many and interest rates that will rise, forcing the real cost of housing further out of reach of most.

They still have a bit to come down yet - fingers crossed.

 

Two SOLD boards have gone up on my road alone in the last week or so, obviously SSTC but it's better than nowt.

 

I could believe that housing may be somewhere near bottom in the US, but not here. There is only £75k off an average detached house from a year ago here so far.

 

Strange you say that JB, £75k is a hell of a drop.

I believe you live in Scotland aswell where the market is holding out pretty good according to all the indexes.

If you believe that an average detached home is worth around £750k then your £75k down looks about right for Scotland.

If you are speaking typical £250k detached houses, then £75k drops i would say is severe and does not represent what all the indexes are saying about Scottish prices.

We are currently down as a nation 19%, Scotland around 8%. N.Ireland around 35% The U.S is down 29% from peak but that is with 3yrs worth of drops.I think we have 5-10% max to go. From now on in there are going to be drops followed by gains followed by drops etc.

In my opinion anyway

 

Ha ha good try!

I reckon that those with a bit of cash want to get it into bricks and mortar before it becomes worthless with the coming inflation!

Les

 

Funny you should say that Les as thats one of the reasons I am keen to upgrade now. Hoping inflation will eat away the debt over the coming years.

Got a reasonably tasty 4.29% fix for 5 years lined up, providing we buy in the next 2 months.

House we are after has probably lost about 10% off peak.

 

Is that 10% as per asking price? The general consensus is that prices are 20% from 12 months ago.

 

More like 25% I would have thought. To get us back to long term trend we need to lose about 40% in total, so that leaves another 15% to go.

I'm not sure if USA prices have bottomed, the rate of decrease has actually increased afaik. Sales are up, but they are mainly foreclosures at knock down prices.

Equities have surged today and gold dropped. I'm buying gold now, as I think we'll have another surge in it when everyone realises the g20 plan will come to nothing.

I'll sell gold after the surge and then buy equities when the FTSE next falls below 3700 and the Dow 7000. (or lower )

I'll invest in property probably q1 to q2 2010 (when things are really bad)

ps If you do exactly the opposite to my above plan you'll make loads of money, as I'm usuallt wrong

 

£456k down to £381k for detached in KY16 over the last year. I don't think we're half way there yet.

 

20% is as you say general. As Mitchy says above, its not 20% across the board and its certainly not 20% here. Local economy sees to that unfortunately.

 

If you don't mind me asking where are you?