Hpc - Touchy Subject!

[Maynard]

I've been a avid follower of the forth coming "correction" for a cople of years now, mainly because I want to step on the property ladder myself, but cannot at current prices.

Twice this week, I have mentioned house prices have come into conversation and twice I have been snapped at and the conversation quickly overted.

I was in the barbers on monday. Speaking to the barber about the flat he had for sale above the shop. He asked if I was interested...

Me: Not for a couplke of years yet mate, I'm waiting for prices to come down.

Barber: Don't be so silly, they won't come down. Interest rates will stay low and prices will go up.

END OF CONVERSATION.

I was then in the Halifax on Tuesday setting up an ISA

CASHIER: So sir, when are you planning to buy a house? (all nice and polite)

ME: Oh, not for a couple of years yet. Prices are too high, I'm waiting for the correction.

CASHIER: (abruptly) House prices wont come down.

... She hardly spoke a word to me after that.

What's going on. Don't people realise that house prices in relation to earnings are way over the long term average? Why is everyone so naive/stupid?

Or is it just me?

[izzy]

I've been a avid follower of the forth coming "correction" for a cople of years now, mainly because I want to step on the property ladder myself, but cannot at current prices.

Twice this week, I have mentioned house prices have come into conversation and twice I have been snapped at and the conversation quickly overted.

I was in the barbers on monday. Speaking to the barber about the flat he had for sale above the shop. He asked if I was interested...

Me: Not for a couplke of years yet mate, I'm waiting for prices to come down.

Barber: Don't be so silly, they won't come down. Interest rates will stay low and prices will go up.

END OF CONVERSATION.

I was then in the Halifax on Tuesday setting up an ISA

CASHIER: So sir, when are you planning to buy a house? (all nice and polite)

ME: Oh, not for a couple of years yet. Prices are too high, I'm waiting for the correction.

CASHIER: (abruptly) House prices wont come down.

... She hardly spoke a word to me after that.

What's going on. Don't people realise that house prices in relation to earnings are way over the long term average? Why is everyone so naive/stupid?

Or is it just me?

<{POST_SNAPBACK}>

Perceived wealth is closely tied up with property prices. Most people don't have savings, they only have the 'value' of their house. Can't blame them for getting touchy when you want to devalue their asset.

[Maynard]

Perceived wealth is closely tied up with property prices. Most people don't have savings, they only have the 'value' of their house. Can't blame them for getting touchy when you want to devalue their asset.

<{POST_SNAPBACK}>

Good point. If I owned property I'd be the same.

[Smell the Fear]

I was in the barbers on monday. Speaking to the barber about the flat he had for sale above the shop. He asked if I was interested...

Me: Not for a couplke of years yet mate, I'm waiting for prices to come down.

Barber: Don't be so silly, they won't come down. Interest rates will stay low and prices will go up.

END OF CONVERSATION.

<{POST_SNAPBACK}>

Discussing future losses on his investments when you are sitting in a chair with your arms restricted and he is armed with scissors and/or a cut-throat razor, while the source of his woes is literally looming overhead is going beyond the call of duty in spreading the word on house prices......

[Maynard]

Discussing future losses on his investments when you are sitting in a chair with your arms restricted and he is armed with scissors and/or a cut-throat razor, while the source of his woes is literally looming overhead is going beyond the call of duty in spreading the word on house prices......

<{POST_SNAPBACK}>

Yes, I was only answering his question. He wanted the best part of 90k for a crumby 1 bed flat over his shop, in need of a lot of work.

It seems the only place anybody seems to realise the situation the market is in is on this forum!

[Rain'ard]

Discussing future losses on his investments when you are sitting in a chair with your arms restricted and he is armed with scissors and/or a cut-throat razor, while the source of his woes is literally looming overhead is going beyond the call of duty in spreading the word on house prices......

<{POST_SNAPBACK}>

Last time I discussed house prices coming down with my barber he got so angry he pulled a lever and I went over backwards dropped down in his cellar, broke my neck and he cut my throat. The woman of whom he was an item cut me up and sold me in pies.

And all I mentioned was the Halifax august report

[VacantPossession]

Last time I discussed house prices coming down with my barber he got so angry he pulled a lever and I went over backwards dropped down in his cellar, broke my neck and he cut my throat.  The woman of whom he was an item cut me up and sold me in pies.

And all I mentioned was the Halifax  august report

<{POST_SNAPBACK}>

....and that same Halifax "report" has far reaching VI influence. A friend of mine who is abroad DIRECTLY quoted that report as a reason for him delaying moving back to the UK because (he felt) house prices were not coming down.

Of course I quickly told him that one report from a notoriously talking-up-the-market org such as Halifax should be ignored. I also told him of the real situation i.e up to 12% down already in many areas.

Just shows that any old twaddle by VI's is still believed by all and sundry.

VP

[erd]

Perceived wealth is closely tied up with property prices. Most people don't have savings, they only have the 'value' of their house. Can't blame them for getting touchy when you want to devalue their asset.

<{POST_SNAPBACK}>

It is the way that you get at the wealth that sucks.

Either borrow and pay interest for ever or sell and rent (or live with parents like me).

[Rain'ard]

....and that same Halifax "report" has far reaching VI influence. A friend of mine who is abroad DIRECTLY quoted that report as a reason for him delaying moving back to the UK because (he felt) house prices were not coming down.

Of course I quickly told him that one report from a notoriously talking-up-the-market org such as Halifax should be ignored. I also told him of the real situation i.e up to 12% down already in many areas.

Just shows that any old twaddle by VI's is still believed by all and sundry.

VP

<{POST_SNAPBACK}>

I think such reports play on people’s fears. Did you notice how the latent bulls came out the woodwork when a poster recently created a thread on this subject.

It made them feel safe enough to emerge and gloat at this one blip against the trend.

The VI’s are irresponsibly giving a false impression of security.

[right_freds_dead]

you cant ever underestimate its the work of the VIs. they got this boom going by pushing mild mannered boomers into wannabe landlords via BTL.

i cant remember just how many glory programs featuring dweebs making a mint flipping semis for 20k minus the laminate. but it was lot.

tell your barber to eat dirt. hes flats going down fast. offer him 15k.

[fatfreddie]

I equate the present period to 1990 when things stabilised. I was in the minority at work who didn't own a property. Everyone was expecting property to go back up again. I did have a look around but my heart wasn't in it. Then shortly afterwards things tumbled. When they tumble they come down fast. People were bailing out. Its the old FEAR thing. Its a funny thing as with rising house prices peolple get irrational buying within 5 minutes with crazy prices. Well the reverse is true in selling when panic sets in. Unemployment is creeping up. Remember in 1990 interest rates were at 8 % and that was considered a good rate at the time and not considered high.

The next few years should be very interesting

[BuyingBear]

Good point. If I owned property I'd be the same.

<{POST_SNAPBACK}>

It impacts on their uncertainties and insecurities and in extreme cases their own view of their worth as an individual, in the latter case they'd take less offense if you said their baby is ugly

[Guest muttley]

I was in the barbers on monday. Speaking to the barber about the flat he had for sale above the shop. He asked if I was interested...

Me: Not for a couplke of years yet mate, I'm waiting for prices to come down.

Barber: Don't be so silly, they won't come down. Interest rates will stay low and prices will go up.

END OF CONVERSATION.

<{POST_SNAPBACK}>

It has always saddened me that the people with the finest economic minds elect to take jobs as barbers or taxi-drivers.

However,there may be an alternative explaination to your barbers sudden reticence.

Poor market conditions have forced many Estate Agents to either cut back on staff,or even close altogether.This has caused an increase in unskilled workers looking for work.Some of the cannier ones may very well be re-training as traffic wardens,lap-dancers or even hairdressers.Your barber could be a former EA who could not resist one last stab at the property game.

[Rain'ard]

Point there Muttley

Maynard, Why didn’t you say “I’m paying you to cut my hair, not sell me a flat”

At least we’ll be able to identify who the bears are walking the streets, they’d all have a bald stripe on the backs of their heads

[Killer Bunny]

Two more minor anecdotes:

In the High St on Saturday a 'lovely' was handing out flyers for an unsold apartment block locally. I said no thanks - anyway prices will fall 30 to 50% in the next 5 years.

She obviously couldn't understand that I had said something. So she said pardon and I repeated.

Silence - just a blue eyed blonde stare into the air.

Next I was in a property looking to rent and the agent asked what we thought. I responded OK but too high as prices will fall as sale prices plummet.

They won't fall, they've stabilised.

I reckon 30 to 50% in 5 yrs is on the cards.

They won't fall, she replies firmly.

I respond - we'll see.

.....

[CrashBear]

I was also in the barbers recently.

After chatting for a while, the barber asked me "so you live around here?"

me: "Yeah just round the corner renting. Far too overpriced to buy anywhere right now"

him: "Oh yeah too right, I remember when I was younger and all my friends got in real trouble with negative equity. It was pretty bad. Worth waiting"

I was quite suprised by this opinion, usually I find the opposite....for once someone with half a brain!

[Wuluf]

Red pill/state.. Blue pill/state..

Amazing really..

"More ofen than not people believe that which they want to believe.." (Matrix.. sort of)

Edited September 9, 2005 by Wuluf

[OLDFTB]

Last time I discussed house prices coming down with my barber he got so angry he pulled a lever and I went over backwards dropped down in his cellar, broke my neck and he cut my throat.  The woman of whom he was an item cut me up and sold me in pies.

And all I mentioned was the Halifax  august report

<{POST_SNAPBACK}>

Yeah,he did that to me as well.

[Guest Charlie The Tramp]

What they don`t discuss football anymore.

[Saving For a Space Ship]

I find I get the same reaction as you did with mentioning an HPC when I mention a recession. The other day, I got a simple response of 'There won't be a recession' . What they are usually really saying is 'I don't want there to be a recession because I don't think its in my own selfish interest'

These days I just hold my tongue as I can't be bothered to get into it. All

the evidence of it unravelling is there to see for those with open eyes.

[Guest Charlie The Tramp]

when I mention a recession. The other day, I got a simple response of 'There won't be a recession' .

<{POST_SNAPBACK}>

I find once I say my party piece.

Did you know the increase in debt which has more than doubled in the past eight years when it took six hundred years of the banking system to reach half a trillion pounds, then it is clear cut IMO that there is going to be one almighty bang.

End of discussion.

[Clouseau]

I equate the present period to 1990 when things stabilised. I was in the minority at work who didn't own a property. Everyone was expecting property to go back up again. I did have a look around but my heart wasn't in it. Then shortly afterwards things tumbled. When they tumble they come down fast. People were bailing out. Its the old FEAR thing. Its a funny thing as with rising house prices peolple get irrational buying within 5 minutes with crazy prices. Well the reverse is true in selling when panic sets in. Unemployment is creeping up. Remember in 1990 interest rates were at 8 % and that was considered a good rate at the time and not considered high.

The next few years should be very interesting

<{POST_SNAPBACK}>

Good post - I suggest it's reasonable to expect the same degree of fear-frenzy during the later downward-stage of prices as there was greed-frenzy in the later upward-stage, but it will still take a longish while yet for the vast supertanker that is public perception to adjust; autumn/winter next year ?

[Rain'ard]

What they don`t discuss football anymore. 

<{POST_SNAPBACK}>

And they never ask if "you want anything for the weekend"

[SE1]

What's going on. Don't people realise that house prices in relation to earnings are way over the long term average? Why is everyone so naive/stupid?

Or is it just me?

<{POST_SNAPBACK}>

No, it's not just you.

[SE1]

Maynard, Why didn’t you say “I’m paying you to cut my hair, not sell me a flat”

At least we’ll be able to identify who the bears are walking the streets, they’d all have a bald stripe on the backs of their heads

<{POST_SNAPBACK}>

( Laughs! )