More signs here that low interest rates, central bank intervention, austerity and attempting to prop up asset prices is good for the economy. UK house prices are plunging again as overnight data shows a dramatic -3.6% decline in September. Halifax housing economist Martin Ellis says this is the largest decline since 1983:
“Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market. These will all be constraints on the market, dampening house prices,” the economist noted. “On the positive side, we expect interest rates to remain very low for some time, which will underpin the improved affordability position for homeowners.”
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