prices aint budging

Generali

Pobby wrote: »

You keep mentioning `` green shoots``. Can you please explain what you mean? Thanks.

I suspect that it's a reference to Norman Lamont who, as Tory Chancellor of the Exchequor, used to talk regularly about "The green shoots of recovery" when discussing when the economy was going to come out of recession.

phil_b_2

Green shoots, like when summer kicks in and green shoots poke out from the soil as new life begins to grow?

EdInvestor

kristianwilliams wrote: »

I What causes it to slow/stop/crash/correct is more than one factor, although the media may have increased the rapid decline, it was not the only/single factor.

I'd have thought the cause was pretty obvious.The banks have no money to lend.Mortgage approvals are half the normal level.

Sellers will be wise to wait until this situation rights itself before subjecting themselves to the runaround as detailed on this thread.

The current house price figures are looking more spurious by the day, especially the ones based on mortgage approvals from the banks that have given up offering mortgages.

dannyboycey

phil_b wrote: »

Green shoots, like when summer kicks in and green shoots poke out from the soil as new life begins to grow?

Is that a penny I heard dropping?




Sorry.

WTF?_2

EdInvestor wrote: »

I'd have thought the cause was pretty obvious.The banks have no money to lend.Mortgage approvals are half the normal level.

Sellers will be wise to wait until this situation rights itself before subjecting themselves to the runaround as detailed on this thread.

The current house price figures are looking more spurious by the day, especially the ones based on mortgage approvals from the banks that have given up offering mortgages.

Strange - I thought that anyone with a 10% deposit and a decent credit record could still get a mortgage for a sensible multiple of their income....

Are you confusing "Not willing to give out ludicrous amounts of money relative to income or to lend to people who are bad risks" with "Not offering mortgages" perchance?

dannyboycey

obsessed_saver wrote: »

As most people have pointed out, only the distressed seller needs to reduce prices to sell in this market. If the sellers are not distressed (financially), or they are not in a rush to sell, then they are not going to reduce prices. Fair enough.

No. But neither are they 'upsizing', or re-mortgaging to buy holidays, cars and other non-essentials. This affects the economy, which in turn affects house prices. It's all intrinsically linked. Don't underestimated the amount of people who have MEW'ed over the past few years. This money is now out of the loop and cannot prop up retail sales. Combine this with global credit issues and those of supply and demand, and you will begin to see that the UK economy is coming to a grinding halt. Very serious times ahead!

boinging_2

EdInvestor wrote: »

I'd have thought the cause was pretty obvious.The banks have no money to lend.Mortgage approvals are half the normal level.

Sellers will be wise to wait until this situation rights itself before subjecting themselves to the runaround as detailed on this thread.

The current house price figures are looking more spurious by the day, especially the ones based on mortgage approvals from the banks that have given up offering mortgages.

Exactly how will the situation right itself... Bradford and Bingley win the lottery?

Banks are not doing anything revolutionary here, the lending practices they are employing now are historically ones they have always employed.

phil_b_2

dannyboycey wrote: »

Combine this with global credit issues and those of supply and demand, and you will begin to see that the UK economy is coming to a grinding halt. Very serious times ahead!

It certainly isnt looking good for this country. It's going down the sh!tt3r from what I can see. I'll give it another year or so and if things havnt improved I'm out'a here .

EdInvestor

dannyboycey wrote: »

No. But neither are they 'upsizing', or re-mortgaging to buy holidays, cars and other non-essentials. This money is now out of the loop and cannot prop up retail sales.

On the contrary, remortgaging is not too badly affected by the credit crunch.It's the first time buyers who have been zapped, because they are higher risk.

obsessed_saver

dannyboycey wrote: »

No. But neither are they 'upsizing', or re-mortgaging to buy holidays, cars and other non-essentials. This affects the economy, which in turn affects house prices. It's all intrinsically linked. Don't underestimated the amount of people who have MEW'ed over the past few years. This money is now out of the loop and cannot prop up retail sales. Combine this with global credit issues and those of supply and demand, and you will begin to see that the UK economy is coming to a grinding halt. Very serious times ahead!

Yes, but, if generally people are still ok with repayments, and are not "distressed", then they wouldn't be forced into dropping their prices, would they?

The key here is "forced selling". I'm not saying that the general economy isn't heading into a recession, but just commenting on the topic of this thread that people aren't dropping prices.