Friday, Nov 30, 2007
Even the gutter press are reporting it
The Mirror: House prices down £65 a day.
House prices dropped by an average £65 a day this month, the fastest rate for 12 years.
Further fuelling fears of a property slump, mortgage approvals in October also crashed to just 88,000.
Posted by little professor @ 07:20 AM (585 views) Add Comment
6 Comments
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1. dohousescrashinthewoods said...
Cracking - if ordinary people are reading this, that really is the end of BTL.
The man down the pub will be telling a different story pretty soon.
2. japanese uncle said...
In this festivity, I would like to repost the following:
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Majority of those who overstretched themselves to 'step onto the property ladder' during the past three years here, are the British counterparts of the American 'sub-prime' borrowers. They were able to do that thanks to the market failure in which exorbitantly easy credit (albeit not the permanent condition but just lasting for a few years, while the debt/mortgage spans decades!) allowed them to buy something unaffordable from the beginning. They are destined to find themselves unable to cope after the initial 'fixed' or interests only repayment periods expire, triggerring the HPC . The last remnant of the excessive liquidity originating in Japan seems now still hanging around this market, having escaped the US that is already on its way to hell. The idea of what the effect of the full-scale property meltdown should be, is simply too horrendous to entertain, looking back over the past decade of excess and prodigality, painting each and every town on this isle redder than blood, making the livers of Britons swollen as same as their debt. Five years ago the invisible chain around its neck was already long and heavy enough, but now the number of links it has forged ever since is beyond our wildest guess. Visits of the Three Spirits is now the only chance for it to rid itself of the curse, albeit a rather rude awakening. May the long-awaited HPC serve the purpose in somewhat constructive manner. After all our dear old ES was successfully reborn.
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For those who compare this financial crisis to the collapse of the Japanese bubble circa 1990, I should like again to mention that given just a couple of months savings buffer in the average British household (unlike as many years savings buffer typically seen in Japan at least in those days), any financial contingency, such as job loss (which will undoubtedly soar for the next few years), reduction of income, etc will instantly trigger repossession, sending the housing market head over heels at a much faster pace than what was the case in Japan. I almost see apocalypse.
3. mrmickey said...
Ju most people I speak to only have a couple of weeks savings to fall back on then it's out on the streets. Post Christmas expect a surge in garage/car boot sales as people desperately attempt to sell Christmas presents to raise cash as their credit cards will have been long cancelled by the banks. We are heading for a nasty period of deflation, credit lines are running out out fast so enjoy the final credit splurge this Christmas be warned it will be your last.
4. japanese uncle said...
Maybe about time to stop exchanging nominal/empty Xmas gifts, except those for small kids.
5. drewster said...
I hate to be picky, but where does the Mirror get its figure of £65 a day from?
"Nationwide said yesterday the average cost of a home plunged 0.8 per cent this month to £184,099."
By my calculations that makes £49 a day, not £65 a day. It's still a pretty hefty fall (£1472 a month!) and way more than most of us pay in rent. I just don't like sloppy journalism or sloppy maths.
6. bidin'matime said...
Drewster - £65/day, £48/day - who cares - the message is that houses are falling in value at a rate that will make most people sit up and take notice and that's all that matters...