Recovery of the Housing Market will come Quickly

pickledpink

Recovery of the Housing Market will come Quickly
In the press today there was a very interesting article by the Chief Executive of the MLA............................



Peter Williams, chief executive of the intermediary Mortgage Lenders Association which represents lenders who sell mortgages via brokers, insisted we are not seeing a repeat of the early 1990s property crash.

He said: 'While arrears and possessions are clearly on the up - this is no mortgage meltdown akin to what we saw back in 1991.

'There's no doubt that with rising food and fuel prices, people have less spare cash. But the pain of this slowdow will be short and sharp.

'In the past house prices have been driven down by a lack of demand.

'But house prices have come down rapidly in the last year because mortgage finance has dried up - this is a very different type of adjustment for the UK economy.

'Normally a self-correction in the housing market feels like an elastoplast being peeled off very slowly. What we've seen over the last 12 months is a quick, sharp rip.

'That should mean recovery comes more quickly than it has in past slowdowns.'

:beer:

brit1234

However what he forgets is that housing is more overvalued than ever. Yes we are having big falls but there is as a ratio of price the falls are in line with less overvalued property crashes in the past.

He also doesn't take into count where all the funding is coming from, the banks are broke taking ever increasing loses.

It will take years to recover maybe longer than normal.:beer:

pickledpink

So you know better than the chief executive do you??? And you don't think he hasn't thought of all those points??!

Why don't you apply for his job then maybe you'll be on £220k a year. :rolleyes:

Incisor

pickledpink wrote: »

So you know better than the chief executive do you??? And you don't think he hasn't thought of all those points??!

Why don't you apply for his job then maybe you'll be on £220k a year. :rolleyes:

And you don't think that for £220k the duties of his job could possibly include injecting spin into the market?

Sometimes the duties of a chief exec on £220k include saying things that are patently stupid, whereas people without that salary or perhaps working in another sector can actually say it how it is.

Neillgb

pickledpink wrote: »

Recovery of the Housing Market will come Quickly
In the press today there was a very interesting article by the Chief Executive of the MLA............................



Peter Williams, chief executive of the intermediary Mortgage Lenders Association which represents lenders who sell mortgages via brokers, insisted we are not seeing a repeat of the early 1990s property crash.

He said: 'While arrears and possessions are clearly on the up - this is no mortgage meltdown akin to what we saw back in 1991.

'There's no doubt that with rising food and fuel prices, people have less spare cash. But the pain of this slowdow will be short and sharp.

'In the past house prices have been driven down by a lack of demand.

'But house prices have come down rapidly in the last year because mortgage finance has dried up - this is a very different type of adjustment for the UK economy.

'Normally a self-correction in the housing market feels like an elastoplast being peeled off very slowly. What we've seen over the last 12 months is a quick, sharp rip.

'That should mean recovery comes more quickly than it has in past slowdowns.'

:beer:

How can this bloke sleep at night, somebody(note singular) might believe him and buy a property for more than 25% less than the asking price and be in negative equity this time next year. I note no time scale provided, quickly relative to what? Erosion of granite perhaps acceptable.

Amazing demonstration of self interest.

Just noticed another, quite large, housing development put on hold in my neck of the woods, loads of smaller building projects, extensions etc, on hold. Don't recall that in the 1990's.

chickmug

Just retiring after my whole life in the property market and through good times and bad times all those with a vested interest in hyping up the market come out with the spin, spin and even more spin.

An absolute abundance of lies and they have no shame.

The culprits are all the bodies that represent their members interests. They have to otherwise their members are up in arms. So it is like the rest of the media - you can read it but don't take everything as Gospel as it is NOT.

nick28uk

I'm a first time buyer (joint income is about 50K a year) and I won’t be buying until prices come down to a sensible level, most of my friends the same age are in a similar position... its first time buyers like me and my friends that drive the market... its dead in the water I’m afraid. I'll buy in 2012 when prices represent value!

Neillgb

nick28uk wrote: »

I'm a first time buyer (joint income is about 50K a year) and I won’t be buying until prices come down to a sensible level, most of my friends the same age are in a similar position... its first time buyers like me and my friends that drive the market... its dead in the water I’m afraid. I'll buy in 2012 when prices represent value!

Spot on.

Save your money and be ready for when the market turns, eventually. If you pick your moment you will have a great start in life on the property front.

Good luck to you.

Gangstabird

The man works for the Association of Mortgage Lenders which represent brokers. Without people applying for mortgages through brokers, there would be no association.

Anyone else not spot this. He can't say anything else really. When I was selling mortgages, as a broker, I got great commission. People who went directly to the lenders used to really wind us up.

wymondham

According to a local estate agent, the local market is selling well and completely uneffected by the "horror" stories in the news....

Same principle!! - Self Preservation!! :rotfl:

chickmug

wymondham wrote: »

According to a local estate agent, the local market is selling well and completely uneffected by the "horror" stories in the news....

Same principle!! - Self Preservation!! :rotfl:

As an EA it amuses me when I meet other EA's and they don't know when to stop the BS. They still try and tell me how well they are doing - almost as if they have been programmed on getting out of bed. I usually tell them to 'shut it' as I know what is really happening out there. God help me if I was ever like them I would be mortified.