The market is gathering momentum.

StevieJ

pandamonia wrote: »

Activitiy doesnt count as recovery.

Prices are falling and offers are well below asking, auctions are selling 20% below todays value and interest generated is becuase of the awareness of falling prices rather than a recovery in the market. People with the most equity are still free to move around and put offers in on other homes also people taking advtange of trading up because of the need for extra bedrooms etc.

i would not call any of this a recovery.

Nothing to do with falling interest rates (fixed short and long)

pandamonia

i would expect that new entrants to the market are almost zero. people cant trade to 4 bed if no one around to buy the 2 and 3 bed homes.

Swipe

If there is a rise in sales it will speed up the falls in the LR stats as offers @ 20% below asking being accepted seem to be becoming the norm now.

StevieJ

Swipe wrote: »

If there is a rise in sales it will speed up the falls in the LR stats as offers @ 20% below asking being accepted seem to be becoming the norm now.

Not according to this

http://www.hometrack.co.uk/commentary-and-analysis/house-price-survey/20090126.aspx

mewbie_2

The market is gathering momentum

Don't take this the wrong way but...

...is it fokk as like.

purch

The market is gathering momentum

Is it, upwards momentum ? downwards momentum ? sideways momentum ? or some other kind of momentum ?

Personally I'm going for Off the Edge of a Cliff Momentum, but I wouldn't take much notice cos I'm only typing to avoid talking to the MIL !!!

Kez100

Thanks Conrad. I appreciate these are positive movements in flows of funds. The first thing we need to see.

I would rather they were available for business cashflow support than your sub prime guy, but that is besides the point.

Thanks for continuing to post and taking the flack. It is people at the coalface who will see the first flickers of liquidity.

mewbie_2

Kez100 wrote: »

It is people at the coalface who will see the first flickers of liquidity.

That would be the coalface that closed down thirty years ago presumably.

Kez100

You know what I mean.

To me there are two elements to this recession. It's the second I want changing and I look at Conrad's post as an indication funds may start to flow as he works at the coalface of raising money.

I dont worry unduly about a normal recession. It's healthy when you see how complacent and wasteful people get during a boom. I look forward to continued falls in house prices, they need adjusting, and I say that as a home owner (although one who couldn't give a damn what it's worth)

However, what worries me this time, we desparately need to stop far more people suffering than need to, is liquidity. Businesses are squealing for cashflow. This happened with such speed no one got any chance to reassess. Promised support has disappeared and margins increased suddenly and little one can do because you can't just move banks at the moment. About the only thing you can do is shout and scream and hope you get through. I had a mate in this situation the other day. The only way we could get out of it was me go with him (as I have business savings with the same bank) and I said that I would move banks if he didn't have his margin returned to normal. We are not talking big beer here. Very small beer, actually. This lack of liquidity is really, really worrying me.

mewbie_2

Kez100 wrote: »

You know what I mean.

Yes I do, I was being flatulous. Sorry.

I cannot understand where the hundreds of billions have gone. Surely letting the banks go under ( their problem, capitalism, get over it) and using the money to support the rest of business (people who make and sell useful stuff) might have been better.

Of course it wouldn't work.