UK House Prices -The next bubble waiting to burst ??
chancer - Sat, 24 Dec 05 :
“Then it is likely that we will see a period where the market is broadly flat and that is why we are forecasting 3 per cent growth next year – which is nothing in real terms.”
Imagine if someone predicted a 0% or negative forcast for next year, they would soon be out of a job.
I remember a few years ago when I worked in sales for a major company and every month a sales forcast was held in which you had to predict your next months figures, next quarters and your on target year end figures.
When the many others put forward the glooom side of things it fell on deaf ears. They would rather hear lies and many did (soon got sacked when their quarter figures failed expectations)but at least they got a couple more pay cheques before being found out.
It was referred as the revolving door syndrome were new blood would be brought in and the cycle would start all over again.
Eventually, the share price of the company fell (dramatically) as the real truth eventually materialises. (not enough buyers as per company expectations)
I won't mention what industry I work or worked in but it is very simular story what is happening in the housing market statements that seem to be promoting increases for future expansion.
Builders, Estate Agents, Surveyors, Developers, Mortgage Lenders, Banks / Building Societies and the new breed of landlords would all suffer in a domino effect if such a mention of stagnation was forcast.
