Wednesday, Feb 27, 2008

News for the great unwashed

The Sun: Solid foundations - viewings are on the rise.

Persimmon chairman John White said: "We are not calling the ‘turn’ but, as each week goes by, we have definitely seen an improving trend.

“More people are visiting our sites each week and there are more reservations. While mortgage lending has tightened, people now understand the new criteria more clearly, and more are coming to look at our new homes.”

THE SUN SAYS: This is the first piece of good news from this battered sector for a while. Longer term, prospects should be good, with demand for new homes outstripping supply.

Posted by little professor @ 10:42 PM (1263 views) Add Comment

14 Comments

1. little professor said...

In actual fact:

Persimmon reported that viewings were down 13% from a year ago. It's order book is down 20% from a year ago. And cancellation rates of previously reserved properties is running at 19%.

To spin this is positive news takes some doing.

Thursday, February 28, 2008 12:05AM Report Comment
 

2. wiltshire said...

It's not at all scientific but a quick search for the web traffic figures for www.persimmonhomes on www.alexa.com doesn't inspire confidence in Mr White's claims either.

Thursday, February 28, 2008 12:30AM Report Comment
 

3. yorkshireman said...

If people understand the new criteria more clearly, they will realise they can borrow less money. Presumably, this is reflected in the lower prices Persimmon must now be offering ?

Thursday, February 28, 2008 06:37AM Report Comment
 

4. Simplysam said...

I can now see how chairmans need to act as sales persons at a much higher levels. Just like the sales persons they are just interested in their own pay packages so distorting figures is not a concern to them.

Thursday, February 28, 2008 08:20AM Report Comment
 

5. bilko said...

I don't think you can under estimate the role in certain areas of the media in helping to create the house price inflation. When you consider that the Daily Mail owns the Prime Location website and look how often the Mail headlines with price rises.

Thursday, February 28, 2008 08:24AM Report Comment
 

6. Orwell said...

One wonders when the first will go to the wall...

Thursday, February 28, 2008 08:54AM Report Comment
 

7. hpwatcher said...

The comments are absolute rubbish, and can be safely ignored.

Thursday, February 28, 2008 08:55AM Report Comment
 

8. Pelethar said...

hpwatcher: I agree that the comments are nonsense but this is a significant article. The Sun has been quiet so far and has avoided taking a position on the issue. If they decide to come down with the bears - as the Mail has - and take their readers with them, then that could tip the balance. The opinion bit at the bottom is very bullish - If this means they are siding with the Express then that's bad news.

One other point. His comment "We are not calling the turn, but....." implies very heavily that the housing market has been in decline, yet I have the oddest feeling that most of the VI's have spent the past 6 months steadfastly denying this. Shades of 2005 - denial throughout the slump then lost of referring to it once it was finished: "the housing market has recovered strongly following 2005's slump" etc. This stuff gets on my nerves.

Thursday, February 28, 2008 09:15AM Report Comment
 

9. Doggadogdog said...

Shock announcement, Christmas cancelled say turkeys.

Thursday, February 28, 2008 09:44AM Report Comment
 

10. hpwatcher said...

If this means they are siding with the Express then that's bad news


It simply matters no longer. The war of perception & sentiment are over......recession & HPC here we come! I don't take a huge amount of joy from either, as I will probably lose my job; but saying what I think is right is more important.

Thursday, February 28, 2008 10:02AM Report Comment
 

11. wage slave said...

'I don't take a huge amount of joy from either, as I will probably lose my job; but saying what I think is right is more important.'

It's a pity Gordon Brown didn't take your attitude instead of frying the economy for his own political ambitions.

Thursday, February 28, 2008 10:14AM Report Comment
 

12. p. doff said...

Yes, it's all about sentiment. You must remember that a great part of the population is of the Jeremy Kyle show mentality, who have little interest in 'real' news. This type of article in the Sun will be believed by these sheeple - as evidenced by a comment a buyer made to me last week ---''the crash won't happen - I heard prices are shooting up again, which is why we're jumping in now''

Thursday, February 28, 2008 10:17AM Report Comment
 

13. theboltonfury said...

p.doff - I genuinely believe anyone who is of the Jeremy kyle generation is highly unlikely to be given any sort of mortgage. Certainly not one to enable them to push up house prices

Thursday, February 28, 2008 11:24AM Report Comment
 

14. Letthemfall said...

The SUN says: Corrrrr, look at those new door knockers! Yes, sexy saucy Sandy is borrowing up to the hilt again. "House prices will stand up stiffly for ever!" she told our eye-roving reporter. With luscious Sandy in residence, we bet they will !!!

Thursday, February 28, 2008 11:33AM Report Comment
 

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