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House prices bottomed ?
StevieJ
Posts: 20,174 Forumite
So say Berkeley the smart shrewd guys of the building industry, land to drop another 10% but house prices to stabilize, OK I am waiting for your VI putdowns 
He expects only 50,000 new housing starts this year and said that house prices, which have fallen some 20% since their peak, will hover around their current level before they pick up again.
LONDON (Dow Jones)--Residential property developer Berkeley Group Holdings PLC (BKG.LN) is planning to repeat its successful strategy of buying land at the bottom of the market, and will spend GBP150 million in 2009/10, managing director and cofounder Tony Pidgley told Dow Jones Newswires Friday.
Pidgley, who is known for his shrewd reading of the market, said that land prices will fall a further 10% this year, on top of the 50%-60% decline already made.
"There are still unrealistic expectations (from vendors) out there," he said, but added that Berkeley is already buying land selectively. Pidgley said he has agreed to buy a "major site in London" Friday.
"The worse is behind us," he said, although he acknowledged that house prices will not pick up before liquidity returns.
He expects only 50,000 new housing starts this year and said that house prices, which have fallen some 20% since their peak, will hover around their current level before they pick up again.
Berkeley earlier reported a 38% fall in pretax profit for the year but, contrary to other rivals who kept buying land in the peak of the market, has not taken any land write-downs, having bought land at very low prices in the last downturn.
It said Victoria Mitchell will step down as chairman on Sept. 9, to be succeeded by Pidgley, the co-founder of the group and group managing director for the past 33 years.
He expects only 50,000 new housing starts this year and said that house prices, which have fallen some 20% since their peak, will hover around their current level before they pick up again.
LONDON (Dow Jones)--Residential property developer Berkeley Group Holdings PLC (BKG.LN) is planning to repeat its successful strategy of buying land at the bottom of the market, and will spend GBP150 million in 2009/10, managing director and cofounder Tony Pidgley told Dow Jones Newswires Friday.
Pidgley, who is known for his shrewd reading of the market, said that land prices will fall a further 10% this year, on top of the 50%-60% decline already made.
"There are still unrealistic expectations (from vendors) out there," he said, but added that Berkeley is already buying land selectively. Pidgley said he has agreed to buy a "major site in London" Friday.
"The worse is behind us," he said, although he acknowledged that house prices will not pick up before liquidity returns.
He expects only 50,000 new housing starts this year and said that house prices, which have fallen some 20% since their peak, will hover around their current level before they pick up again.
Berkeley earlier reported a 38% fall in pretax profit for the year but, contrary to other rivals who kept buying land in the peak of the market, has not taken any land write-downs, having bought land at very low prices in the last downturn.
It said Victoria Mitchell will step down as chairman on Sept. 9, to be succeeded by Pidgley, the co-founder of the group and group managing director for the past 33 years.
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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Comments
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they could be right, or they could be wrong
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
inspector_monkfish wrote: »they could be right, or they could be wrong
Have you got that coin strange how the same headline about land price drops can breed such different thread responses. 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
inspector_monkfish wrote: »they could be right, or they could be wrong
but they could also be wrong. or they could be wrong 0 -
A credit shortage and rising interest rates have yet to hit the property markets.
Rapidly rising long term fixed rates are beginning to show where we are heading.
So I wouldn't be getting over excited at the moment.0 -
Thrugelmir wrote: »A credit shortage and rising interest rates have yet to hit the property markets.
Rapidly rising long term fixed rates are beginning to show where we are heading.
So I wouldn't be getting over excited at the moment.
Then again we are not making a successful living from it like they are, BTW I think the credit shortage has been around for a while.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
The biggest boom in history is NOT going to be followed by the smallest bust in history...simple really....more years of fallout is to be expected..It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
OK, you know best Geoff.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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Hilarious. Next you'll be quoting an Estate agent saying that the market has bottomed. :rotfl:So say Berkeley the smart shrewd guys of the building industry, land to drop another 10% but house prices to stabilize, OK I am waiting for your VI putdownsKrusty & Phil Madoff, 1990 - 2007:
"Buy now because house prices only ever go UP, UP, UP."0 -
ad44downey wrote: »Hilarious. Next you'll be quoting an Estate agent saying that the market has bottomed. :rotfl:
I noticed the Mac thread was quoting estate agents 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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