Thursday, Jun 11, 2009
The difference is objectivity
Times: New mortgage approvals rise 16% in April
So, in contrast to the BBC, at least the Times shows those bothering to read that whils tit might be up 16% against a pityful March 2009, the VOLUME of mortgages is down 28% on last year - not in my memory a boom year. Worse: The VALUE of those mortagages is down 40%. So: more smaller mortgages? FTB's you'd think?. But no, these are described as only a small portion.
Comments please HPC-ers?
Posted by growler @ 11:11 AM (821 views) Add Comment
4 Comments
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1. growler said...
In true P4AC style... firsrt comment ...
I think what we're seeing is more down-sizers due to:
- tighter conditions as described in the article
- "pay my debts off" vendors
- normal movers rather than "investors"
- fixed-rate takers locking in a rate - but missing the fact the asset will fall
2. general congreve said...
No, you are entirely wrong Growler. This is the beginning of the next property bull, this time next year we'll be seeing houses at 20x income multiples. We are saved, forward to the recovery!!!
3. uncle tom said...
Look at the low average LTV's and income multiples, note the reduced amount advanced.
Typically, these are older homeowners relocating to properties of similar value.
Prices have not fallen enough to bring genuine FTB's into the market in sufficient number (note that the number of FTB's is always far too high - the term is used for anyone taking out a mortgage without another mortgage to redeem at the same time; so for various reasons, many people get classed as FTB's more than once in their life)
Potential up-sizers are frozen by a lack of equity, thereby preventing others from down-sizing.
This is a reaction to the easing of the banking crisis; not the market bottoming out.
4. sold out said...
I had a meeting yesterday with an estate agent, he came to view my late mothers bungalow.
After speaking to him, and looking at the ammount of Sold signs that are up their seems to be a shortage of supply at the moment.
I believe that a lot of people who failed last year to sell, because they couldn't get their asking price have either taken them of the market and are waiting or the vast majority have become reluctant landlords.
This is one of the reasons we are seeing prices stabalising and more activity IMO, a lack of supply.
I still think that once the wait and see's and the reluctant landlords come back to the market the decline will commence again.