Tuesday, Nov 25, 2008
Bank issuing a negative assessment of housebuilders
YAHOO Finance: Broker snap: Land value crash to hit housebuilders
Credit Suisse (CS) believes the trading outlook for housebuilders in 2009 is “extremely poor” as consumer confidence continues to dive and credit availability remains restricted. CS believes the resale of repossessed properties will act as a further drag on the housing market, forcing housebuilders to slash prices to generate sales income to keep the bank manager happy.
Posted by crashonitsway @ 11:02 AM (219 views) Add Comment
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. mark wadsworth said...
“Our incremental concern surrounds land prices. We now expect a decline, peak-to-trough, of 60%."
Sigh, it's them pesky land values again! Pure land values dropped by two-thirds in the early nineties, and then increased five or ten fold. A 60% fall is the absolute minimum, it could well be 80% (Japanese Uncle - "99%!") this time, why not?
Summary - high land values are an unexploded bomb ... that always explodes, dragging the rest of the economy with them.
Our old friend Land Value Tax man could sort this all out. And no, I am not in favour of high taxes. Taxes on incomes and production should be cut anyway, LVT should be a replacement tax so it would enable us to cut rates (or increase welfare and pension levels) even further.