while they fell 13.5% in 2008 they are failing to state they increased out of all proportion over the previous 10 years.....
House prices...
Jan 29, 2009
5 Replies
This is because any fall is "utterly desperately awful", while any rise is "what everyone (that owns a house) needs". Mental.
Of course what a lot of homeowners don't realise is that a 13.5% fall cancels out a 15.61% rise.
This disparity grows wider the greater the percentage rise. For example it only needs a 50% fall to cancel a 100% rise.
7 actually,
The first 4 years of the recent boom merely made up for the "under correction" from the 89 peak (and subsequent crash)
tim
It works the other way too. If a property (or other asset) falls by 50%, it needs to double in value (ie. rise increase by 100%) to make up the drop.
Worse with assets that normally grow slowly but can drop quickly, such as stocks.
Get propertybee for firefox and when you browse rightmove you see the price drops. :)
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