Repossessions.... and gazumping???

CVID

Make of this what you will.

I switch on the BBC1 lunchtime news and watch this interesting report about how repossessions are over 50% up on a year ago... obviously, a clear sign of an impending house price crash.

Then, depressed, I switch over to 'Working Lunch' on BBC2 where I find myself in the middle of an article on the 'return of gazumping' ... obviously, a clear sign of an impending house price surge.

Answers on a postcard......

ollyshaw

It does seem odd. I am sure there has been a decline in prices in my area, certainly no need to gazump as houses dont seem to be selling. On the other hand London prices seem unstoppable. Maybe it depends where you live? All in all though property press does seem more negative this year.

Olly

ashcarrot

Yeah I saw that, its is a little bit interesting... we could still be on the see-saw some parts seeing gazumping as a final chance to grab their home before a the repossessions are realised by everyone. Its all a bit crazy

Conrad

Its just like last time.

I have articles from the Times just prior to last crash. Some say 'prices set to increase a further 20%' or 'prices up 30% last year' and 'builders desperately short of land', THEN a few months later BANG!

Amongst the mainly bullish 1988 articles are some bearish examples.

Repos are on the up and the figures are for 2006, which means that relates to people who got into arrears in 2005 (lenders have to give up to 12 months leeway now). Keep in mind rates were a lot lower back then.

Now people are comming off fixed rates and finding rates are some 2% higher for another fixed or 3 - 4% higher on a standard varaiable.

Note the new trend of lenders charging vast arrangemnt fees to remortgage, this will deter a lot of remortgaging, so again people stuck on high variable rates, AND OFTEN WITH A GREAT DEAL MORE DEBT THAN WAS TYPICAL IN 1988.

Timbrrrrrrrrr

t_hamill

It certainly is a little worrying to say the least. Here in Northern Ireland things are in an absolute frenzy with asking prices being more akin to opening bids at an auction.

In my local area prices are up 54% in the previous 12 months. I feel lucky that my wife and I purchased our home a few years back but most of my friends are currently buying for the first time and it does seem to be a precarious financial gamble to take at present.

zipwen1

aren't repos up because people have been getting stupid amounts of credit card and loan debts.
could there be enough people in so much debt that they have to sell up and create a price drop in houses as a result, or would there need to be other factors involved.
if interest rates do rise again, will they drop in the future. and why do rates rise and fall
i don't have a clue about any of this so all comment's and explanations from you knowledgeable people would be gratefully received

CVID

For anyone interested there's a video article on the bbc wesite about gazumping, although it's from last April. Type the g word into the search box to take you there.