The Times Newspaper Reports Property Will Not Drop Any Lower

wymondham

mr.broderick wrote: »

Ignore this..this guy is fake.

how do you know?

I think we've still some way before prices level out as well ......

lynzpower

this article says ABSOLUTELY NOTHING that we dont already know.

However, there are some glimmers of hope for anxious homeowners, as well as potential buyers, with the RICS pointing to tentative signs that activity in the market may be close to hitting a floor, while the scale of price falls appeared to have eased a little. Bank of England figures also revealed a modest fall in some key mortgage rates during the past month.
In a rare dose of more positive news, the RICS survey shows that the proportion of surveyors reporting falling house prices was lower last month, for a third month in a row. Some 83.9 per cent more surveyors still said that prices had fallen in July than said they had increased, but this compared with a low point reached in April of 94.7 per cent more talking of declining prices.
At the same time, the survey also finds that numbers of new buyer inquiries rose last month, while expectations of future numbers of sales among surveyors also climbed amid signs of sellers cutting asking prices.
There was also some relief for those struggling to secure a competitively priced mortgage as the Bank's figures showed that the average interest rate on a two-year fixed-rate home loan, based on borrowing 75 per cent of a property's value, dropped to 6.36 per cent last month, from 6.6 per cent in June.
Meanwhile, the average interest rate last month on a five-year fixed-rate loan, for 95 per cent of a property's value, edged upwards, rising to 7.14 per cent to reach its highest since early 2000, the Bank's figures showed.

the glimmer being "people are slashing prices"

the glimmer being "more enquiries" sorry, what on earth does that mean. I know one of my mates is looking to buy in leeds, she is enquiring in every EA in the vicinity, to see if she can get the house she wants ( 2 bed starter terrace) fior as low as possible.

An ever-so-slight fall in surveyors saying prices have dropped. Erm, that doesnt mean that they are rising. It just means fewer have reported a drop. INcidentally one could assume that there are less surveyors surveying out there to SEE these drops, so cannot report. Id read this excerpt as Surveyors say the drop they are seeing now IS NOT AS STEEP as what it was in April. Sorry, that doesnt equal a rise, or the bottom of the market whatsoever.

75% LTV props have seen a tiny shift downwards as lenders scrabble about for what few buyers with good deposits ( to see off that Neq eq one would presume)

those with less than that - see the 95% brigade, are seeing the highest rates since 2000.

A very positive spin on what is effectively a market not moving, a few people enquiring, and mortgage rates rising for anyone except the 75% crew.

Hmmmmm

harbinger13

meester wrote: »

Er, surely you should have rented a nicer place?

We rent for £1500/month (£18k/year), the next door house sold for £525k, mortgage rates are about 6.2% at the moment, so that's £2,700/month interest/only = £32.5k/year

We got new kitchen, new appliances when we moved in, gardener came in, repainted, replastered some rooms that were looking tired (all paid for by landlord). When the freezer broke they bought a new one.

All this calculation is good in current scenario - what you might miss as Renter is the 'irrational appreciation' that you gain by investing in an asset.

Wait - before you come back with the good reasoning - that house prices will drop in the next 2 years - I agree with you buying a house now or having bought recently is not a good investment - it is like buying Enron (remember it) at its peak of $85 in 2002 - when it went kaput in 2003/4.

Housing won't face that disaster, but there will be lot of pain. So, overall right now renting is great - but if you get a chance to own an asset at fire-sale price then it is better to own the house than rent even during this difficult period - because on the bright side filter this - if you can pay up your dues during recession and high interest rates - will you not be able to pay up during the future years when things calm down and get better.

Had read some where - the scariest thing is not that you buy the house and it depreciates, but you dont own a house and it appreciates rapidly.

tomstickland

beingjdc wrote: »

Oh for pity's sake. I've seen some madness, but this is truly special. The RICS is seasonally adjusted, and yes, it's gone up for two months now. But they're seasonally adjusting A NEAR ZERO NUMBER. How do you seasonally adjust 1%? It's like looking at a football team that lost 6-0 and trying to work out how well they'd have done on steroids. Maybe 3-3, but maybe still 6-0 (eg they were on a day out from the Old People's Home).

Here is the percentage of surveyors in the unadjusted figures who say prices are falling:

February 57
March 66
April 82
May 84
June 87
July 89

Here is the percentage of surveyors in the unadjusted figures who say prices are rising:

February 4
March 3
April 1
May 2
June 1
July 1

Ha ha, that's amazing. So their percentages are a totally idiotic use of the data.

sdooley

The Times Newspaper Reports Property Will Not Drop Any Lower


It did nothing of the kind. It said that transaction volumes might increase. They are so low (a tenth of last year) there is every chance they will increase quite dramatically in percentage terms. That won't coincide with house prices increasing though - more likely sales volumes will increase as desperate agents push sellers into dropping prices.

Jumping_Bean

Anyone looking at a house prices to average incomes graph should be able to see for themselves where house prices are going.

justpurchased

wymondham wrote: »

how do you know?

I think we've still some way before prices level out as well ......

Been an estate agent for 38 years and would advise anyone not to buy!

It like saying i have been a car cleaner for 38 years and i would advise anyone not to clean a car.

Either he is a fake or the worlds worst estate agent, I would not fancy him selling my house!. There are so many factors in buying a house and if you try hard enough and look long enough you can pick up a bargin.
so I agree. Fake,

meester

I just called Foxtons to ask them about market conditions here in Surrey, they said the government was putting billions into the mortgage market and as soon as they'd finished the prices would go up again.

After that he said prices hadn't gone down because there was a shortage of property on the market and buyers were keen to buy what there was. In his next breath having told him I wanted 20% off, he invited me to view a property he has at £825,000 encouraging me to make an offer at £600k.

lynzpower

meester,

great anecodatal there.

"the government putting millions into the mortgage market" er, make that billions and its stil getting worse not better.

I went past a foxtons today, and the girl behind the "bar " looked very bored. There were at least 20 unfilled "egg chairs" in the front of the shop. I quite like those chairs, must keep an eye out for them on ebay when the inevitable happens!

mewbie_2

harbinger13 wrote: »

Had read some where - the scariest thing is not that you buy the house and it depreciates, but you dont own a house and it appreciates rapidly.

That's a nice quote, but incorrect. It is indeed very scary to own a depreciating asset. But not owning something that is appreciating is not really scary, just a sort of idle wish. I wish I'd bought (and sold) before the dotcom bubble, or I wish I'd got into BTL in 2000 (and out again), or I wish I'd had those lottery numbers.