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Sellers desperate as economy slowing
MissMoneypenny
Posts: 5,324 Forumite
"Sellers of residential property in England and Wales hiked their asking prices by an annual 5.8 percent in February, a survey showed on Monday, despite a glut of properties on the market and forecasts for a slowing economy."
"The Bank of England has cut interest rates fifty basis points since December to 5.25 percent, but increasing evidence of an economic slowdown has reduced the likelihood of further cuts in the near future."
" Rightmove's Miles Shipside said. "These are likely to prove unwarranted, given the higher level of existing property that is already on the market and the length of time that it has been there," he said."
http://uk.news.yahoo.com/rtrs/20080218/tuk-uk-britain-houseprices-fa6b408_1.htmlhttp://uk.news.yahoo.com/rtrs/20080218/tuk-uk-britain-houseprices-fa6b408_1.html
"The Bank of England has cut interest rates fifty basis points since December to 5.25 percent, but increasing evidence of an economic slowdown has reduced the likelihood of further cuts in the near future."
" Rightmove's Miles Shipside said. "These are likely to prove unwarranted, given the higher level of existing property that is already on the market and the length of time that it has been there," he said."
http://uk.news.yahoo.com/rtrs/20080218/tuk-uk-britain-houseprices-fa6b408_1.htmlhttp://uk.news.yahoo.com/rtrs/20080218/tuk-uk-britain-houseprices-fa6b408_1.html
RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.
Read the sticky on the House Buying, Renting & Selling board.
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Comments
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Yawn. Someone else has already plugged this non-story:
http://forums.moneysavingexpert.com/showthread.html?t=749269
Prices rise, prices fall, stop wetting yourself in excitement.Been away for a while.0 -
Well done MissMoneypenny.:D
Never mind Running Horse. Some fell on stony ground:rotfl:0 -
I read an economic paper on this (will try and fish it out and post a reference). They called it the "price stickiness" phase, and always precedes the crash as sellers attempt to squeeze whatever they can out of their property.
Maybe we had the "Bull trap" in 2005 when the Muppet show in the BoE lowered interest rates to 50 year lows (attempting the 'return to normality') stuffing the credit junkies and panic buyers into the top of the market.
Denial or Fear or both?0 -
The great thing with charts is that with hindsight it all looks so simple!
How about this alternative analysis of the chart - in actual fact 2005 was a bear trap as prices subsequently exceeded previous peaks - the mania phase is only just beginning! buy! Buy! BUY!!!0 -
The great thing with charts is that with hindsight it all looks so simple!
How about this alternative analysis of the chart - in actual fact 2005 was a bear trap as prices subsequently exceeded previous peaks - the mania phase is only just beginning! buy! Buy! BUY!!!
Ummm ..... no.....
That's the whole point. Prices exceeded previous peaks artificially .. unnaturally as the BoE / VI etc attempted to justify the new paradigm by reducing interest rates. This has just made the problem worse in the long run. If they didn't reduce rates when they did the 2005 downturn would have continued ... without the help of an almighty credit crunch that we now have...:T0 -
So, now must be the time to get a spread-bet on shorting the UK house index?0
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I personally think we've still got the bull trap to come, as I just posted on a different thread...
It's a funny one to call this time... People aren't generally struggling financially (so far) ,people with half decent credit ratings haven't felt the credit crunch yet and there's an awful lot of previously priced out, desperate wannabe FTBs out there waiting to snap up "bargains".
I think the FTBers will shoot their load at a 10% discount and not be able to help themsleves. Prices will rally for a little while, the "bulls" will gloat and say "I told you, I told you, I told you" and then the crash will really start. A bull trap.
Could be interesting!!0 -
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Yep it's somebody playing with your mind.0 -
lol. Thanks.0
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