Let's play Match The Quotation To The Pundit. They're all quoted late in 2007, talking about their predictions for house prices in 2008.
1 - The effect of the credit crunch will dissipate slowly, meaning that those seeking to obtain finance in the first half of 2008 may struggle. However, the employment picture should remain firm throughout the year, helping to prevent significant numbers of repossessions and the subsequent influx of supply into the market.
2 - I predict the net result is that house prices will fall a little in the first half of the year - by up to 5%. But by June, the fall in bank rate and an easing of the liquidity squeeze will stabilise the market, although it will still be very difficult for sub-prime borrowers. In the second half of the year, transaction levels will improve and prices will partly recover, ending the year down 2%.
3 - As affordability constraints are eased and demand continues to outstrip supply, the long-term future is set to be bright and we expect the housing market to return to its previously higher levels by 2009.
4 - Based on the information currently available, 0pc inflation is our best estimate of the most likely outcome, but there are plausible risks in both directions. The main downside risk is that continued financial unrest or a US recession cause the economy to slow even more sharply than expected, leading to a more significant rise in unemployment, higher levels of forced sales and lower house price expectations.
5 - We expect house prices to fall 5% next year and by a further 8% in 2009, wiping out the gains of the last 18 months. The long overdue housing market correction now appears to be underway.
Now match the quote to the pundit: a) Nationwide's Fionnuala Earley b) RICS's Simon Dubinsohn c) Capital Economics' Roger Bootle d) John Charcol's Ray Boulger e) Spicerhaart Financial Services' Steve Cox
And remember, it's just a bit of fun.
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