Despite the fact that there has been some great indicators that the house prices in the UK may have bottomed out, or at least be very close to doing so, some people are still far from convinced.
In a quite complicated argument this week about the fact that housing still had a way to fall, James Ferguson of the website MoneyWeek outlined why he believes that house prices could fall another 40%.
His very detailed argument is based, partially, on the fact that he believes affordability of houses in this country are still far too high. This figure is worked out by measuring initial home loan payments as a percentage of take home pay. According to James these figures show the housing downturn could be anywhere up to five years from bottoming out.
As a result he recommends that anyone wanting to make maximum profit from property in this country should wait a few years before deciding which one to purchase.
Mr Ferguson is clearly a very intelligent man, and he may well be right but personally I hope that not too many people listen to him because in the tricky way of economics, that is one definite way to make sure his predictions come true.
