Estate Agent group say housing sector is fragile

Graham_Devon

EA's saying it's not good? Whatever next?

An estate agents' group has described the housing market for first-time buyers as "fragile" as other figures suggest the sector is stagnant.

The National Association of Estate Agents (NAEA) said sales to first-time buyers fell to the lowest level in seven months during May.

The lack of activity has been reflected in the latest housing equity figures.
The Bank of England said that housing equity withdrawal remained negative in the first three months of the year.

The £8.8bn injection of equity reflected low levels of sales and some mortgages expiring, rather than owners making an active effort to pay off their mortgages more quickly.

Again, there is no evidence of people paying their mortgages down more quickly, as often touted around here.

http://www.bbc.co.uk/news/business-18704154

joe_blotts

"Fragile' and "Stagnant". Hardly fertile ground for the coming 'BOOM' as envisaged by those that recently attended a certain "homeowner's dinner party' now is it?

shortchanged_2

Shock, horror, even EA's are stating the obvious now.

abaxas

shortchanged wrote: »

Shock, horror, even EA's are stating the obvious now.

Maybe they are thinking in a positive way and trying to solve the problem with something other than 'hope'.

Mr._Pricklepants

Good stuff.
Another 8 billion equity injected.
Equity withdrawal has been negative now since mid-2008 and it's something we all can applaud.:T

Little by little, those 'overindebted, scared homeowners' ((C) Foxy 2012) become a bit less indebted and scared.

And why would anyone want to pay down the mortgage debt early with mortgage rates for most financially savvy homeowners at it lowest since living memory....

moneyinmypocket

Graham - bitter much?

chewmylegoff

Housing equity withdrawal remained negative?

I wish people would stop spouting nonsense like this, right up there with "negative profits", winds me right up.

Mr._Pricklepants

chewmylegoff wrote: »

Housing equity withdrawal remained negative?

I wish people would stop spouting nonsense like this, right up there with "negative profits", winds me right up.

Sorry George, just using the common term.
http://www.bankofengland.co.uk/statistics/Pages/hew/2012/mar/default.aspx
But if you prefer "housing equity injection is positive", that's fine also. Whatever keeps you happy.

FTBFun

Your thread title is wrong - you say "estate agent group say housing sector is fragile", but what was actually said was "the housing market for first time buyers as fragile".

Obviously that wasn't deliberate in the slightest to make a point. Ahem.

joe_blotts

Mr._Pricklepants wrote: »

Sorry George, just using the common term.
http://www.bankofengland.co.uk/statistics/Pages/hew/2012/mar/default.aspx
But if you prefer "housing equity injection is positive", that's fine also. Whatever keeps you happy.

What exactly does that mean? does it mean more people are putting money into the house rather than withdrawing equity from it? if so how does that work if in another part of the article they say homeowners arn't paying down the debt. TIA

Mr._Pricklepants

joe_blotts wrote: »

What exactly does that mean? does it mean more people are putting money into the house rather than withdrawing equity from it? if so how does that work if in another part of the article they say homeowners arn't paying down the debt. TIA

It's in the article, joe
Homeowners are paying down debt.
What they are not doing however is...

... making an active effort to pay off their mortgages more quickly.

And why would they, with these rates?