Despite academic and mainstream press skepticism, US and UK house prices are literally starting to soar in response to government measures aimed at boosting housing market sentiment into sustainable bull market trajectories, that I expect could continue for the remainder of this decade.

Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of four ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series.that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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Nadeem Walayat Archive

Comments

Mr Maxi Psycho 28 Aug 13, 15:04	housing bubble Just because something continues to rise doesn't mean its not a bubble and will eventually crash... ...also I think you far underestimate the significant of rising rates - forget the effect on housing - what about on government spending... And you honestly think housing is going up 10% per year, with wages flat?? So as wealthy boomers retire, youngsters on zero hours contracts will be buying up houses at what insane multiple of their income?? (oh but, I forgot, sentiment is good, therefore housing goes higher??!?! Pull the other one) Mr.Maxi.Psycho
Nadeem_Walayat 28 Aug 13, 16:05	Sentiment Sentiment drives fundementals, all the way towards the euphoric bubble phase, when the mainstream press will be full of goldilocks commentary. Best NW
Mr Maxi Psycho 28 Aug 13, 16:06	Don't Really Agree I don't really agree. (I realize this is a somewhat mainstream view but) The last bubble never burst. UK house prices remain historically overpriced relative to other assets, wages, the the (pesky) fundamentals of the UK economy. And this time its not popular either - much of the recent buying has been people that have held off since 2008, buying their own home. Once that trend is done I see very few buyers, except maybe high end immigrants looking for somewhere to park their cash. ...Economic history says bubbles can't be reflated once popped... We'll see. Carney and Osbourne want benign increases of around 3-8% a year...they don't want 10-20% years. Stopping the HTB scheme or making lending requirements tougher would pull the rug from under this beast... ...and 1 more thing: if you were a rich russian for example and wanted to buy some housing, why would you chose the overpriced UK market over the US or the eurozone?? I wouldn't Mr.Maxi.Psycho
Nadeem_Walayat 28 Aug 13, 17:06	Bull Market Yes, a euphoric bubble is where the current bull market will terminate, as did the last, as I pointed out at the time early to mid 2007, Best NW
Parviz 31 Aug 13, 12:43	U.S. and U.K. soraing house prices @Maxi: No, you are clearly not a rich Russian; and yes, they do prefer "the overpriced UK market over the US or the eurozone." One reason is language (their first foreign language). Another reason is that London is the most cosmopolitan city in Europe. A 3rd reason is that many Europeans (especially the French) are downright snobby even towards French-speaking foreigners, so Russians would be miserable there! To the ultra-rich London will always be London.

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