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Bovis Builders: Fear price crash due to rissing unemployment
brit1234
Posts: 5,385 Forumite
Bovis warning on jobless impact
Housebuilder Bovis Homes has said it is worried about the potential impact of rising UK unemployment on house prices.
Official data shows that the number of jobless has surged to 2.4 million, the highest since 1995.
The firm also said it still expects "relatively low levels of activity" in the housing market as consumers find it difficult to get mortgages.
Bovis said its pre-tax loss for the six months to June was £8.6m, down from a profit of £9.5m a year ago.
'Remains cautious'
"The housing market has shown signs of stabilisation during the first half of 2009," Bovis said. "Whilst this period of relative improvement has been welcomed, the group remains cautious in its expectations on pricing in the short term, given the continuing challenges seen both in terms of mortgage availability and in terms of the approach taken by surveyors in arriving at mortgage valuations," the housebuilder added.
The company said that it wrote down around 2% of its land value, or £8.9m, based on achievable prices in the market. That brings its total writedowns to 14% of its total land.
"There also remains concern about the possible impact on house prices from rising unemployment and from a potential increase in supply of properties for sale in the second hand market," Bovis added.
The British Chambers of Commerce has warned that unemployment is likely to continue rising at a rapid pace, even if the economy started to recover, and could exceed three million.
Bovis said it built 754 homes in the first half of 2009, compared to 851 homes in the same period last year.
The average net sales price was £160,400 for each home, as compared to £196,700 in 2008. :eek:
Housebuilder Bovis Homes has said it is worried about the potential impact of rising UK unemployment on house prices.
Official data shows that the number of jobless has surged to 2.4 million, the highest since 1995.
The firm also said it still expects "relatively low levels of activity" in the housing market as consumers find it difficult to get mortgages.
Bovis said its pre-tax loss for the six months to June was £8.6m, down from a profit of £9.5m a year ago.
'Remains cautious'
"The housing market has shown signs of stabilisation during the first half of 2009," Bovis said. "Whilst this period of relative improvement has been welcomed, the group remains cautious in its expectations on pricing in the short term, given the continuing challenges seen both in terms of mortgage availability and in terms of the approach taken by surveyors in arriving at mortgage valuations," the housebuilder added.
The company said that it wrote down around 2% of its land value, or £8.9m, based on achievable prices in the market. That brings its total writedowns to 14% of its total land.
"There also remains concern about the possible impact on house prices from rising unemployment and from a potential increase in supply of properties for sale in the second hand market," Bovis added.
The British Chambers of Commerce has warned that unemployment is likely to continue rising at a rapid pace, even if the economy started to recover, and could exceed three million.
Bovis said it built 754 homes in the first half of 2009, compared to 851 homes in the same period last year.
The average net sales price was £160,400 for each home, as compared to £196,700 in 2008. :eek:
:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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:rotfl:
Well, I see the words "price crash" were not used by Bovis, or the BBC, so that'd be your "creative" addition then.....
Most of the bulls, myself included, fully expect further falls over this winter. Some are even predicting stagnation for several years.
Even the major organisations such as CEBR, RICS, and the banks that are predicting overall rises this year now, still expect to see a few months of falls at some point.
Non story.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »
Non story.
Non story that house builder is saying prices will fall due to increased unemployment when estate agents are trying to ramp prices up. No its a plesant change with this bit of honesty.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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Does it really need to be in such huge font? This is not the Daily Mail website.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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Non story that house builder is saying prices will fall due to increased unemployment when estate agents are trying to ramp prices up. No its a plesant change with this bit of honesty.
This is a non story. I was speaking with someone from the company the other day who tells me a)they have a war chest to go out and secure new land and b) they are recruiting heavy again. So while they remain cautious, it is far more positive than what is being reported.0 -
Non story that house builder is saying prices will fall due to increased unemployment when estate agents are trying to ramp prices up. No its a plesant change with this bit of honesty.
:rotfl:
You can't help yourself, can you?
At NO POINT do they say "prices will fall".
It says they "remain cautious on expectations of pricing" about the possible impact of unemployment and increased supply. That could just as easily mean they expect price rises to slow, or even for prices to stagnate.
Well done Brit. You now have to resort to out-and-out lying to create a bearish thread. That alone speaks volumes as to how well the recovery is going.:rotfl:
It's a total non story, but your desperate clutching of straws is very newsworthy indeed.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
The story shows that sentiment towards where we go from here is starting to change, even for those with VI.0
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Bovis have only seen an average 18% fall on their new builds?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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This is a non story. I was speaking with someone from the company the other day who tells me a)they have a war chest to go out and secure new land and b) they are recruiting heavy again. So while they remain cautious, it is far more positive than what is being reported.
The actual news release states this as well. It would also be foolish of a company not to anticipate future possible drags on their business eg unemployment. It does seem to me however that the bad news is getting better
'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 -
FallenAngel9898 wrote: »I have to say I was slightly disturbed by the increase in the prices indices over the last few months, but am feeling much more confident about the situation now, I can only speak for my area but...
Oh there's no doubt we'll see price falls over next winter.
But there is now almost no chance that those falls will result in prices dropping below the lows already seen in February of this year.;)
Even very low year on year positives of a couple of percent are horrible news for crashaholics, as it means they have to save the amount they spend on rent PLUS the widening price gap just to stand still.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Even very low year on year positives of a couple of percent are horrible news for crashaholics, as it means they have to save the amount they spend on rent PLUS the widening price gap just to stand still.
Hamish. Please. Wake up. I'm not trying to get at you, but you keep banging out the same stuff over and over again.
Not everyone who see's the market falling however much is renting. You have been told I don't know how many times, yet you keep just bashing it out.0
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