Friday, Oct 26, 2007
Times now talks about "decline"
Times: Approvals for mortgages fall as property market wanes
"A sharp drop in mortgage approvals, to their lowest level for any September for seven years, yesterday confirmed that the decline in the property market is gathering pace." Now expect BTLers to bail out en masse (I am sparing you my usual laugh but trust me I am laughing hard)
Posted by confused76 @ 09:51 AM (607 views) Add Comment
7 Comments
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1. su said...
I suspect a lot more people are realising the property boom is over. As this knowledge spreads, enthusiasm for buying will wane.
Many will not buy because they cannot afford to buy. Others will not buy because they will wait for prices to drop.
IMO The only ones who will buy are those who are desperate to own their own home or those who believe prices will soon start to rise again (yes, there are some who still believe prices will still rise).
2. Stevie Dee said...
Hi Confused76, I'm watching gold at bullion vault, keep your eye on it.. it's been rising around 6 cents a day. I believe this price is like a true barometer on what is going on. As for your ha hha aha, it actually makes me laugh, and a fantastic reply to the lady last night. I too sold recently, and have this website to thank along with many of the publishers that have published on here. As for anyone who becomes a cropper through the market downturn, they are merely a victim of their initial success and subsequent failure.
3. cornishman said...
On top of less people choosing to apply for mortgages, there are increasing numbers of people being refused mortgages. I expect there will be a general outcry soon about the size of 'non-refundable' application fees. Given that some banks are reducing their interest rates in the first couple of years by making the application fees one or two percent of the mortgage - that's quite a nice little earner for them if they turn most people down!
4. Rubberneck said...
From personal experience this is true. In '96 I was 25 and wanted to buy a home and had sufficient savings for a 5% deposit on a 2 bed house. Prices were still dropping month on month so there was no way I was going to buy my way straight in to negative equity.... Waited until I judged market had hit flat bottom and bought early '97. The couple who were selling took my first offer straight away as they had bought at the tail end of the last boom and just wanted out.
Looking at the market now if I was 25 again and looking for my first home there is no way I'd buy at the moment. I'd bide my time and wait for prices to start dropping and the sellers to become more desperate. If sufficient number of buyers thnk this way there is no other route for prices to take but straight down.
5. Jonathan said...
That's right Rubberneck. It always comes down to market sentiment. Wait for the BTL investors who can't or won't wait for things to improve and knock the last vestiges of confidence away. Markets always recover, but enough people get carried away by the panic of a bubble bursting and sell, exacerbating things, rather than hanging on. The resulting oversupply and lack of buyers only has one effect on prices......
6. confused76 said...
"fantastic reply to the lady last night" ?
well, thanks, glad you liked it, but I was just telling the truth....
7. planning4acrash said...
Is bullion vault safe? Are you protected if they go bancrupt?