Tuesday, Feb 26, 2008
Misleading headline
Telegraph: Interest rate cuts are helping house prices
Persimmon, Britain's biggest housebuilder, said that the two interest rate cuts since November are slowly starting to improve consumer sentiment, although it revealed its reservations were 19pc lower than this time last year.
The Persimmon chairman said that while many were still adopting a "wait and see" approach to buying a new home, Persimmon was seeing more customers come through its doors every week since the new year.
However, converting those visitors into buyers "remained challenging", he said.
Posted by little professor @ 07:39 AM (516 views) Add Comment
6 Comments
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1. little professor said...
I'd expect this kind of shoddy journalism from Assetz, not the Torygraph. Nowhere in the article is anything to support the headline that house prices are being "helped."
2. hpwatcher said...
Improving customer sentiment does not necessarily effect house sales.
Anyone who would chose to buy now is mad. Though, the Elliot wave scenario does predict a small rise before any substantial falls.
3. theboltonfury said...
let's see what their sentiment is like when their mortgage broker tells them to come back when they've got a £30k deposit and then they can buy anything they like up to 200k.
The fact is this, spin all you like in the papers but if there's no money available, then people can't buy like they used to. When 'safe' banks have written off billions and billions of pounds each then they aren't going to make that mistake again soon
Someone's sentiment may want the house but the bank may not feel the same way -In the words of Brian Potter - 'I want to moonwalk son - life's a sh*thouse'
4. paul said...
Persimmon is doing so well too:
Roof falls in on housebuilders after Dresdner warning
5. An Bearin Bui said...
Obviously Persimmon will be seeing an increase in customers coming through their doors since the New Year - January is always the quietest month for house-hunting so growth from January to February would be expected. What they don't clarify in the article, however, is how much growth they're seeing. I would bet it's nowhere near the level of growth they've been getting for the last few years. If growth from January to February is normally 30% and they only saw growth at 10% this year, then that's really a fall in demand overall.
6. harold said...
"I'd expect this kind of shoddy journalism from Assetz, not the Torygraph."
Err, why?