EA's Trying To Control The Market

wibble68_2

This is another example of EA's trying to control the housing market.

http://www.whatinvestment.co.uk/258836/interest-rates-start-to-bite.thtml

Do they really think the BOE will be influenced by this crap.

At the first sign of any stagnation or falls in house prices, they'll wheel out the supply and demand brigade in an attempt to keep the market afloat.

In fact the majority of the people who I talk to are in the supply and demand camp, and are convinced that house prices will continue onwards and upwards.

All of them base this on the increases seen in recent years and their insistence that the government won't allow interest rates to get out of control.

Muppets

BrixMorta

What do you mean? Surely the NAEA are just reporting a matter of fact. How can this be seen as trying to influence the market?

Doc_N

BrixMorta wrote: »

What do you mean? Surely the NAEA are just reporting a matter of fact. How can this be seen as trying to influence the market?

Not exactly a matter of fact that's being reported - just the 'opinions' of NAEA members. Those opinions will be very much influenced by what they want the outcome of the survey to be.

Personally, I'm convinced there's a massive crash just around the corner, as predicted by some respected financial commentators. Our kids are both renting and deliberately delaying buying because they expect to pick up bargains inside the next year. There is no such thing as an asset which keeps on increasing in value forever. There are always corrections. People have short memories and seem to forget the last crash.

Over the next few months large numbers of borrowers will have to renegotiate their short term fixed rates. They are in for a nasty shock, and a lot won't be able to afford the repayments. The same will happen to the buy to let brigade. The result will be a flood of property on the market, and the inevitable falls in prices. It's already started in London on recently published figures. Nothing goes up and up and up for ever - people seem to forget that.

Running_Horse

Buyers control the market.

Notlob

Buyers control the market.

Only where there is ample supply and not enough buyers

Sellers have the upper hand if supply is limited with buyers being over familier with each other (climbing over each other) to get the property first

Notlob

Rkelly_2

Doc_N wrote: »

Our kids are both renting and deliberately delaying buying because they expect to pick up bargains inside the next year.

Just like the people who put off buying in 2003 and 2004 because the crash was "Just around the corner"?

Doc_N

Rkelly wrote: »

Just like the people who put off buying in 2003 and 2004 because the crash was "Just around the corner"?

Or the ones who did exactly that in 1989 and bought a house a bit later for a third less perhaps?


http://www.housepricecrash.co.uk/graphs-average-house-price.php


http://www.youtube.com/watch?v=2t8YTvdYXws

Rkelly_2

I am under no illusion that house prices wont fall in the future. But when and by how much? It won't be an early 90s style crash thats for certain. Gordon Brown cannot afford it with the next election in the not too distant future.

lynzpower

You simply cannot berate estate agents for complaining that interest rate rises are bringing the value of properties down.

they work, and are guided by the principle of GETTING THE BEST PRICE FOR VENDORS", nothing else. Its in the contract of NAEA.

:wall:

nobblyned

Doc_N wrote: »

It's already started in London on recently published figures.

Which numbers are those? Not those laughable ones that Cliff D'Arcy cherry picked over on the Motley fool?

epz_2

Running_Horse wrote: »

Buyers control the market.

buyers might control the market but banks control prices, there are people who will borrow silly amounts but if banks dont lend it prices stay the same.