Ooh buyers are coming back

carpmaster

HugoSP wrote: »

Estate agents in our area are telling us the same.

Shares in housebuilders reported a rally after Christmas.

Shock horror an estate agent is trying to ramp up the property market. Surely you're wise enough not to fall for their VI rubbish.

I nearly choked on my breakfast reading your post. Here's Barretts share price from February 2007 until now. If this is a "rally" then I'm Prince William.

PasturesNew

This one is a bit more detailed and covers the period clearly:

http://www.reuters.wallst.com/reuters/chartapi/chart_index.asp?chart=468x211&grid=HORZ&display=mountain&symbol0=BDEV.L&indicator0=Volume&duration=6month&frequency=1day

brit1234

The US market is 12-18 months ahead of us, they have been cutting interest rates constantly yet prices are still falling. No effect at all.

The fact is the UK property is very overvalued just like the IT bubble before it. The market will just revert to normal levels after a while and nothing can stop that just delay it a bit and make the crash even more serve.

Here in London the streets of estate agents are all still empty. They are doing there usual twiddle there thumbs and reading newspapers getting excited when anyone comes to the window.

WTF?_2

brit1234 wrote: »

The US market is 12-18 months ahead of us, they have been cutting interest rates constantly yet prices are still falling. No effect at all.

The fact is the UK property is very overvalued just like the IT bubble before it. The market will just revert to normal levels after a while and nothing can stop that just delay it a bit and make the crash even more serve.

Here in London the streets of estate agents are all still empty. They are doing there usual twiddle there thumbs and reading newspapers getting excited when anyone comes to the window.

Aah, but the US is different. Or the UK is different .... or something.

Anyway, the gist is that there's no way it could happen here otherwise a lot of people would be really in the doodoo and the government won't let it happen and anyway prices only ever go up.

So that should put your mind at rest

manhattan

Loads of for sale signs in my city but not many sold signs!

dolce_vita

As sure as night folows day, bust follows boom.

The current "stagnation in prices" is as unsustainable as a boom and will eventually lead to big price falls.

Busts/recessions blow all the speculative froth of the top of the market and allows prices to revert to more sensible levels.

This is a good thing not a bad thing.
Good for first time buyers, good for upsizers with good credit ratings and incomes and good for society in general.

It is only bad for chancers and debt junkies who find that their overindulgence eventually needs paying for. And if the price they pay is losing their homes, then that's tough.

You could call it financial darwinism.

WTF?_2

macaque wrote: »

The first rule of spin is to use something slightly more compelling than a second hand anecdote involving two viewings. You are up against headlines like this: "Mortgage approvals sink to three-year low"

http://www.thisismoney.co.uk/news/article.html?in_article_id=428864&in_page_id=2&ct=5

and this:

http://www.moneyweek.com/file/40102/property-bubble-the-hissing-sound

Halifax and Nationwide both expect prices to stagnate this year – “about as close as anyone with a vested interest could ever come to predicting a drop”, noted Chris Giles in the FT – while Morgan Stanley foresees a 10% decline.
Optimists hope that the market will simply level off and then rise again, but that ignores “the past 60 years of peaks and troughs”, said Lex in the FT. There is certainly scope for an early 1990s-style adjustment, noted Capital Economics.

m00m00

the OP does sort of have a point, but is missing the main issue.


good properties in good areas close to good schools will always do RELATIVELY better than an average property. The key issue being the relativity, just because a property may decline less in a general slump, doesn't mean it won't decline at all, no matter how desirable an area it is in.

andrew8018

kittie wrote: »

Mark my words, there will be a real scramble for houses soon

Aplologies for the forthcoming rant but I've just re read this thread and simply cannot beleive some of the naivety on here. There is nothing that can possibly re-inflate this bubble now. IMO the BOE would have to cut the base rate by 2% to get people buying again. Look at the US. They've cut the rate by a whole percentage point in the last 6 months and all the figures still point towards recession. The markets are pricing in another possible 0.5% cut soon and people simply aren't buying there. The bubble is worse here in the UK as we have seen far more spectacular growth than the US

As for 4% pay rises, this figure has been reported by the media as being 'above inflation' but if you believe the government that inflation is running at 2.1%, then I too am Prince William. Even if you do believe this figure, people will not feel this in their pockets by the time todays report of 15% energy price rises are implemented in the coming months and it costs a days wages to fill you car with petrol. This rampant inflation will prevent the BOE taking IR down by any significant amount.

As for people hailing the recovery of the housing market because Estate agents have told them so, please follow the link in my previous post. Most EA's will feel very lucky if they are still employed in six months.

[Deleted User]

just had another phone call from dd. Yet another viewing this weekend ie 2 will be viewing in 1 day as well as the second visit in a few days from another. Again someone who has sold and is relocating. Looks as though the EA will be able to play one off against the other as the 4 bed det house is under 300k and in a lovely quiet residential area in the catchment of a top school. It has a village hall, bus. pub, green, childrens playground and no yobs

LOL re the negative comments. I speak as I find