EA's Trying To Control The Market

pickles110564

JoJoArmani wrote: »

The others were all "investors" - wish I had their money to "invest" lol!

Its not their money, just paper stuff from these banks that will lend any amount to anyone

pickles110564

smugbear2007 wrote: »

1. credit tightning will bring HPI to a shuddering halt, even if FTB want to spend daft money they wont BE ABLE to....and isnt the ladder fuelled from the bottom up?

Not always our last move was from people downsizing and buyers from the smoke buying the one at the top for a second home, ours was the cheapest in the chain at £374k.

Melissa177

Doc_N wrote: »

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.

Which ones were those? I missed that one - would love to see a link!

Doc_N

Melissa177 wrote: »

Which ones were those? I missed that one - would love to see a link!

Here you are - just three of many:

http://money.guardian.co.uk/houseprices/story/0,,2152699,00.html
http://www.channel4.com/news/articles/business_money/house+prices+fall+in+london/699047
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article2288839.ece

What starts in London usually spreads to the rest of the country, and I look forward to the time when my kids will be able to buy a house at what will be a much lower price than now.

The daft things is that most people don't actually gain from rising prices. Those who are planning to trade up lose out because the gap gets wider, and first time buyers just can't get on the ladder. Falling prices means better times for FTBs, and less to find if you're trading up. The only people who lose out are the investors (sob, sob) and kids waiting to claim their inheritance!

Roll on the inevitable collapse........this bubble's about ready to burst.

Melissa177

Thanks for the links - but if people don't gain from rising prices, why are you clearly hoping for a collapse?

macaque_2

Doc_N wrote: »

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.

Completely agree with this. Many parents simply not seem to appreciate the risks they are taking with their children's lives when they urge them to buy property in the current market. These young people are saddled with debt which is blighting their lives. If house prices do revert to long term trends, the sacrifice will have been for nothing more than negative equity. Owning your own home is great but not at any price.

nobblyned

Doc_N wrote: »

Here you are - just three of many:

http://money.guardian.co.uk/houseprices/story/0,,2152699,00.html
http://www.channel4.com/news/articles/business_money/house+prices+fall+in+london/699047
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article2288839.ece

What starts in London usually spreads to the rest of the country, and I look forward to the time when my kids will be able to buy a house at what will be a much lower price than now.

The daft things is that most people don't actually gain from rising prices. Those who are planning to trade up lose out because the gap gets wider, and first time buyers just can't get on the ladder. Falling prices means better times for FTBs, and less to find if you're trading up. The only people who lose out are the investors (sob, sob) and kids waiting to claim their inheritance!

Roll on the inevitable collapse........this bubble's about ready to burst.

wow! A monthly drop of 0.1% I'm sure that's statistically significant. The monthly figure for the country as a whole being +0.6%.

That's the thing with numbers - something for everyone! Even the bear can find solace in some of the statistics in a bull market.

For the record I'm neither bull nor bear, I just hate to see numbers being twisted to a biased agenda.

Melissa177

.1% isn't significant, esp in the summer.

If it was Easter, I'd be a bit more concerned.

Doc_N

Melissa177 wrote: »

.1% isn't significant, esp in the summer.

If it was Easter, I'd be a bit more concerned.

I would be inclined to agree with you that a small drop might not be of much significance normally. However, set against the background of a long period of strongly rising prices, month after month after month, I think any fall is of deep significance.

Time will tell, of course, but falling house markets in the US and Europe have spooked the market, on top of interest rises and falling returns for BTLs.

Fear has a major impact on any market, just as greed drives it up. Investors are frightened and are starting to find they can't afford their repayments, FTBs sense a drop, repossessions are increasing. I'm just waiting for the government to remove the tax relief BTLs are currently getting on their loans - it's being widely mooted as another moneyspinner for a government thats short of cash (and one that won't upset many voters).

pickles110564

Doc_N wrote: »

and I look forward to the time when my kids will be able to buy a house at what will be a much lower price than now.

.

How long do you think they will be at this low price for?
You mention your kids are waiting to buy and in my department at work i know of at least 6 dads looking forward to lower prices as well.
This surely means demand will outstrip supply and prices will start rising when all these eager young kids want to get on the housing ladder.
I for one will also add to my btls taking advantage of the lower prices.
:T :rotfl: roll on the crash