Tuesday, Dec 30, 2008
Rightmove & RICS make last ditch bid for king of comedy club 2008
FT: 2009 earmarked as best year to get into property
Buying a bigger property in 2009 will be more viable than ever for homeowners already on the property ladder, according to Rightmove. Although first time buyers are largely still unable to enter the market due to the lack of mortgages and the requirement for large deposits, those wishing to upgrade their property will see many opportunities to do so in 2009. David Dalby, residential faculty director, Rics, said: "Because we have slumped so quickly the likelihood is the recovery will be very quick as well and the great danger is people being left behind, waiting that bit too long and suddenly finding prices are starting to move up again and being left behind, particularly first time buyers.”
Posted by jack c @ 02:36 PM (1655 views) Add Comment
18 Comments
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1. phdinbubbles said...
"Because we have slumped so quickly the likelihood is the recovery will be very quick as well and the great danger is people being left behind, waiting that bit too long and suddenly finding prices are starting to move up again and being left behind, particularly first time buyers."
There's more chance of me suddenly finding Elvis in my bathroom.
2. jack c said...
@phdinbubbles - 2 ways (IMO) to view such a comment (A) treat it as comedy because as you say there's more chance of finding Elvis in the bathroom (B) It's outrageously irresponsible coming from Rics - some people will sadly get sucked into the trap.
3. V Stor said...
Talking up the market like nurds - they must think we're thick
4. paul said...
I really don't know why the FT gives them the print space for this kind of desperate rubbish.
"we have slumped so quickly the likelihood is the recovery will be very quick"
Isn't that like someone jumping off a cliff and remarking "I'm falling so fast the likelihood is I'll bounce back very quickly".
5. crashpad4me said...
Actually, I found Elvis in my bathroom this morning. Apparently, he has been alive all along, and is now working as an estate agent in Barnstaple. I asked him who these upgraders expect to sell to, if first time buyers are still largely unable to access the property market, but he said I was just trying to talk the market down. He then turned into a pig and flew off.
6. dohousescrashinthewoods said...
"Come into my parlour," said the spider to the fly.
If we can just scare some FTBs in to support the market, maybe we'll get a few more surveys done.
7. Plonker said...
We are in identical situation to the 90s. Then unemployment doubled between 90-92. This same is going to happen now. House prices fallen then and they will fall now and then stagnate. Trust me , I been there and I got the Tshirt.
8. techieman said...
dohousescrash.... Yes i think this is right, everything will be aimed towards a springtime suck-in, with a bit of fudging that might give some conter [down] trend positive momentum and soime "green shoots", "last chance to buy" type stuff. If i am right and then the market reverses its gonna be absolute carnage, which will mean downside gaps appear on the charts.
http://www.investopedia.com/terms/b/breakawaygap.asp
9. maddison said...
Dont discount the fact that Gordon's clunking fist might be used to pummel lenders to lend to the housing market. The brown bounce will be used as a term for the housing market...... It might be a brown dead cat bounce though
10. jack c said...
I know of at least 3 people (Director level) who are ready to splash the cash in the residential property market around March/April 2009 - they seem to think it a good time to re-enter the market and I'm struggling to persuade them otherwise - never mind some lessons must simply be learned the hard way.
11. notaneconomicsguru said...
8. If they can buy with cash, and can get a bargain basement price on a repo or something, then they may have a case as the rental yield could probably be better than an interest bearing account, but they face the risk that their bargain price may not be such a bargain if prices keep falling. At the moment, the short term risk is there is no obvious end in sight to falling prices and the long term risk is that as in Japan prices eventually bottom and then do not recover, potentially leaving them with an irrecoverable capital loss. I think its short sighted and foolish to assume that prices will inevitably recover as there is no clarity at the moment of where we are going to on this current crazy journey.
12. This comment has been removed as it was found to be in breach of our Blog Policies.
13. growler said...
As I've said before, both organisations simply show an extremely poor knowledge and understanding of "fundamentals" and expose themselves as desparate chiefs of slowly crumbling organisations. I know this word is made up for "fund" and "mental"... but that's another story. The RICS have probably the highest unemployment rate looming amongst their members and Wrongmove probably are at the point of losing so many clients that their business model is looking shaky. The former will survive, the latter? My money is on finding Elvis in a detached 4-bed buy-to-let.
14. mdmick said...
Rewording 'Suspicious Minds':
We're caught in a crash
And we can't get cash
That's because I
Leveraged too much equity ...
15. Honest Valuer said...
As a member of the RICS I am appalled by these comments, which are well out of line in what I and my experienced fellow surveyors on the ground believe. The RICS was set up by Royal Charter to protect the public interest - another case of a reputable public institution forgetting why it was set up and it's servants lacking any backbone.
16. mark wadsworth said...
These experts can get knotted as far as I am concerned.
After 1989 nominal prices (let alone real prices) slid for about five years. So expecting/promising some sort of flattening before 2010 is just daft. Maybe wait 'til 2011 to be on the safe side.
17. trough2010 said...
First time buyers don't read the FT. And those who do can make up their own mind. Vested interests at work. The equilibrium will be reached at some stage. The boom will return. But it won't be in 2009.
18. new user 2007 said...
"Those looking to upgrade from a terraced to a semi detached property in 2007 would have needed an average of £25,535 additional funds for the purchase. However, those looking to do the same in 2008 would need to find an additional £20,959 to trade up, a saving of £4,576 from last year."
Um, this ignores that terraced house prices will have fallen also, so where is this saving coming from? Shame on the FT for not noticing this discrepancy!