Get started

Houseprices

Inequality.Now when we look at the old saying 'the rich get richer, the poor get poorer' most shrug it off as a pun or a joke in time of self reflection about a current financial situation ect. But the reality is its becoming a major problem in our modern societies. So what does this mean for the average person, now we have all just lived through one of the largest ever increases in inequality during covid, now when we delve into the statistics behind where the furlough and stimulus ended up we can see how much inequality increased, what we saw is a debt passed on to every tax payer, in the UK I believe it was around £7000 a tax payer and in US towards FWB:12K , this wealth was then transferred to the rich, and saw staggering wealth increases in the 'rich' category, either through stock owners or landlords ect, rising interest rates. In the UK we saw interest rates rises, but the usual correlation to house prices in which typically we see rate risers lowering the house prices didnt occur! I work in the building business and have contracts with wealthy clients, These guys are currently buying elderly peoples property in a nice seafront location local to me, they then destroy the house and rebuild modern second home £5m mansions! whilst UK house prices to salary is the same as it was in 1876! Is this not a serious issue to the working man! What we are seeing is living standards drop generation to generation as well as asset purchasing becoming harder and harder to youngsters. Inequality has been a trending issue since 2008 when the interest rates were kept low due to the broken economies world wide, during this time we have seen the price off XAU rise staggering amounts. The problem we face is the constant lowering of wages due to inflation, since 2008 the UK government has pretty much been flat broke, we see it currently in the poor state of roads, NHS ect. The real question is where is this money? Part 2 coming soon
ECONOMICS:GBAHP
by ZenFlo
2
The RICS UK House Price Balance - Trending Up For Now The RICS UK House Price Balance (Released this Thursday 14th Mar 2024 for Feb month) The Royal Institute of Chartered Surveyors (RICS) House Price Balance is a monthly survey that indicates whether more or less surveyors expect housing prices to rise or fall in the U.K. housing market. A positive net balance suggests house price increases, while a negative net balance implies price decreases. The RICS provides valuable insight into the UK housing markets trend and helps gauge the direction of house price movements whilst also offering insight into consumer spending. The Chart The RICS House Price Balance is calculated as the proportion of surveyors reporting a rise in housing prices minus the proportion reporting a fall in prices. It reflects the expected monthly change in national house prices. Positive vs. Negative Net Balance: A positive net balance indicates that more surveyors expect price increases, signaling a robust housing market. A negative net balance implies that more surveyors anticipate housing price decreases, indicating a fragile housing market. Green Area 🟢 = More Surveyors Reporting an Increase in House Prices Red Area 🔴 = More Surveyors Reporting an decrease House Prices Grey Areas ⚫️= Recessions ▫️ The RICS fell sharply from April 2022 down to the 0% level in Oct 2022. This was a leading indication of a downward trend UK House market prices (falling from 78% in Apr 2022 to 0% in Oct 2022). ▫️ The RICS fell into the red zone from Oct 2022 forward indicating that houses prices from this date were in net decline (per surveyors responses). ▫️ Almost 12 months later the RICS reached a low of -66% in Sept 2023. Since this date we have started to trend upwards sharply recovering from -66% to -18.4% today. However we remain in net negative territory indicating house prices are still in declining but not as much as before, a change of trend may forming indicating a move to house price appreciation (not confirmed until we move above the 0% level into + territory). ▫️ The Historic Recession Line on the chart illustrates the -63% level which crossed by the RICS at the onset of the 1990 and 2007 recessions (grey areas on chart). We recently penetrated this level moving to -66% in Sept 2023 which historically does not bode well. This weeks RICS release will be very revealing and could tell us if we have a continuation of the upward trend for UK House prices or if we we remain firmly in negative territory. Lets see what Thursday brings, a fascinating little metric to help us keep an eye on the property market in the UK and the to get an idea of UK consumer behavior. PUKA
ECONOMICS:GBRICSHPB
by PukaCharts
GBP/USD extends losses after weak housing dataThe British pound has extended its losses on Thursday. In the North American session, GBP/USD is trading at 1.2472, down 0.28%. Earlier, the pound touched a low of 1.2445, its lowest level since June 8th. The pound has been unable to find its footing and has posted five losing sessions in the past six, falling 250 basis points during that span. UK house prices continue to fall and posted a decline of 1.9% in August, the steepest drop since November 2022, according to the Halifax Bank of Scotland. The Halifax report noted that house prices have been resilient this year in the face of rising interest rates, but the lag effect of rate hikes may be making itself felt through higher mortgage costs. This week's UK PMI releases highlighted the weakness of the UK economy and have pushed the wobbly pound lower. The Services PMI for August was revised higher to 49.5 from 48.7, following a July reading of 51.5 points. This marked the first decline in services business activity since January. This was followed by the Construction PMI, which decelerated and barely remained in expansion territory at 50.8, down from 51.7 in July. The manufacturing sector has been woeful, and last week's PMI dipped to 43.0 in August, down from 45.3 in July. With the struggling UK economy as the background, Governor Bailey said on Wednesday that it was "much nearer" to ending the current tightening cycle, but added that the BoE might have to raise rates further due to persistently high inflation. Bailey remained non-committal about the September 21st meeting, but the markets are confident that the Bank will deliver a quarter-point hike, with a probability of 82%. GBP/USD pushed tested support at 1.2449 earlier. Below, there is support at 1.2335   There is resistance at 1.2519 and 1.2633
by OANDA