A complex market

Telegraph: Safe as houses? Not in this fast, volatile market

"Property owners have also developed a hyper-sensitivity to the socio-political climate. It’s a dangerous mindset in a market powered by shifts in sentiment rather than economic reality. Article 50 has not been activated to exit the European Union and yet housing chains started to collapse in the aftermath of the vote."

Posted by tom101 @ 06:43 PM 0 Comments

Friday, Sep 23, 2016

Buyer enquiries and sales instructions continue to slip

RICS: Expectations continue to recover

To counter the puff pieces regularly posted here ... like the two below ... a small increase in prices according to the latest (Aug) RICS survey on the back of very low and falling volumes of sales.

Posted by nickb @ 09:17 AM 0 Comments

Thursday, Sep 22, 2016

Housing market picking up again....

Telegraph: Housing market picks up speed in August - as Help to Buy scheme fades

Mortgage lending climbed sharply in August, reversing the post-referendum fall in July and taking the market to its highest summer level since 2007.

Posted by tom101 @ 01:26 PM 4 Comments

Tuesday, Sep 20, 2016

Falling mortgage rates - No better time to buy....

Telegraph: Home buyers set to enjoy mortgage rates below 1pc

Interest rates on typical mortgages could fall below 1pc in the coming months in an unprecedented boost for home buyers, according to analysts at Bernstein Research.

Posted by tom101 @ 03:55 PM 13 Comments

Monday, Sep 19, 2016

Eliminate bankers, transaction costs, speculation and bank runs

Web of Debt: Central bank digital currencies : A revolution in banking

Central banking in the Cloud, one clearing house, one lender and all of the above. And the BoE is moving towards part of this new banking world, where it would be more difficult to get loans for speculation since leveraging of credit through re- hypothecation of credit in the repo market (where several parties apparently own the same asset at the same time when in reality only one of them holds it) would be eliminated. Link in article succinctly explains repo market.

Posted by icarus @ 10:04 AM 2 Comments

Wednesday, Sep 14, 2016

Maybe not inflation

Torygraph: Why is the UK's money supply surging?

Article suggests that the sudden growth of the money supply will result in inflation, and that the BoE rely on consequences of Brexit instead of rate rises. However, imo, " But they suddenly engaged in a reverse ferret, increasing their holdings of cash by an annualised 70pc over the past three month" the dash to cash by fund managers, or this kind of static creation of cash from financial instruments, could also mean that people are getting ready for an across the board drop in prices and want to be ready. As has been reported generally, the BoE is running out of easing measures. Anyway I don't know but it looks like whichever one we end up with of the two alternatives is coming up soonish.

Posted by stillthinking @ 03:31 AM 11 Comments

Tuesday, Sep 13, 2016

Surely banks have ventured here before

Reuters: Exclusive: Goldman team uses retail deposits for Wall Street-style profits

Banks boosting profits using the funds from retail accounts on Wall St. should ring a few alarm bells, shouldn't it?

Posted by enuii @ 06:35 PM 1 Comments

Monday, Sep 12, 2016

Mortgage availability

Telegraph: First-time buyers hit by Brexit as high-value mortgages dry up

'This reflects lenders' growing concern that the housing market could falter in the wake of the EU referendum, brokers say. High loan-to-value mortgages (where the loan represents a high proportion of the price paid) are risky, as they expose the lender and property owner to potential negative equity if prices fall.'

Posted by tom101 @ 11:50 AM 4 Comments

Assets, debt and Ponzi

Counterpunch: Stop the Fed before it kills again

This is about US corporations and stock markets. But the mechanisms apply to any asset market including of course housing. Despite poor earnings US corporations are loading up on debt, using their (current, temporary) creditworthiness / collateral, to pay out dividends and buy back shares to boost their price. But households and consumers are not borrowing enough to boost demand, and corporations aren't investing productively. The Titans of 'industry' are devouring their own children to enrich themselves and impoverish everyone else. The Titan Cronus devoured his own children so that none would dethrone him - but in the end they did.

Posted by icarus @ 09:17 AM 2 Comments

Wednesday, Aug 31, 2016

Will May or Boris rise to the Churchillian Standard?

Prospect: Churchill knew how to solve the housing crisis

"During his tenure as President of the Board of Trade, Winston Churchill wrote a book called The People’s Rights. In it he confronted the issue of landowners benefiting financially from the productive work of others. As the demand for housing and business properties increased, the rewards of rising land values flowed to the landowners at the expense of taxpayers. Crucially he noted this also resulted in a loss of competitiveness to the nation. Not that much has changed since Churchill wrote this back in 1909, except that this latter problem has become ever more acute."

Posted by pete green @ 08:28 AM 3 Comments

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