Antsy Posted January 8, 2009 Share Posted January 8, 2009 (edited) Commenting on the BOE decision: (presumably in his latest missive from the land of the purple pixies) Phil Tennant, Regional Sales Director, Hamptons International said: “Hamptons International welcomes today’s announcement that the Bank of England Base Rate will be cut by 0.5% to 1.5%, which is likely to have unexpected effects on the housing market in terms of property supply. When the housing market underwent a correction in the mid 1970’s and early 1990’s, the average vendor was already feeling considerable pressure from double figures interest rates, making mortgage repayments difficult for many. This pressure resulted in a considerable increase in supply of new properties, which, in combination with a lack of mortgage affordability led to a slow and painful decline in prices over several years. Now, with the latest cuts pushing interest rates lower than they have been for 315 years, the pressure is lifted for many vendors who may have otherwise been forced to sell. It is therefore conceivable that we will see a constriction in supply over the next few months. Lower interest rates will, as always, help to increase demand from potential purchasers. This combination of changes in both demand and supply could lead to less downward pressure on house prices.” Whaaaa??? Edited January 8, 2009 by Antsy Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted January 8, 2009 Share Posted January 8, 2009 People will not buy for as long as prices are seen to be falling.....oh and the fact that no banks are lending Quote Link to comment Share on other sites More sharing options...
1929crash Posted January 8, 2009 Share Posted January 8, 2009 People will not buy for as long as prices are seen to be falling.....oh and the fact that no banks are lending Massive job insecurity, which did not exist at the start of all this, has now got to be factored in. Quote Link to comment Share on other sites More sharing options...
GrillsBears Posted January 8, 2009 Share Posted January 8, 2009 Commenting on the BOE decision: (presumably in his latest missive from the land of the purple pixies)Phil Tennant, Regional Sales Director, Hamptons International said: “Hamptons International welcomes today’s announcement that the Bank of England Base Rate will be cut by 0.5% to 1.5%, which is likely to have unexpected effects on the housing market in terms of property supply. When the housing market underwent a correction in the mid 1970’s and early 1990’s, the average vendor was already feeling considerable pressure from double figures interest rates, making mortgage repayments difficult for many. This pressure resulted in a considerable increase in supply of new properties, which, in combination with a lack of mortgage affordability led to a slow and painful decline in prices over several years. Now, with the latest cuts pushing interest rates lower than they have been for 315 years, the pressure is lifted for many vendors who may have otherwise been forced to sell. It is therefore conceivable that we will see a constriction in supply over the next few months. Lower interest rates will, as always, help to increase demand from potential purchasers. This combination of changes in both demand and supply could lead to less downward pressure on house prices.” Whaaaa??? He's right. People will be paying less on their 2K mortgage payments. They won't be forced to sell due to high interest rates. They will be forced to sell because they have lost their jobs. Quote Link to comment Share on other sites More sharing options...
Mammon Posted January 8, 2009 Share Posted January 8, 2009 Commenting on the BOE decision: (presumably in his latest missive from the land of the purple pixies)Phil Tennant, Regional Sales Director, Hamptons International said: “Hamptons International welcomes today’s announcement that the Bank of England Base Rate will be cut by 0.5% to 1.5%, which is likely to have unexpected effects on the housing market in terms of property supply. When the housing market underwent a correction in the mid 1970’s and early 1990’s, the average vendor was already feeling considerable pressure from double figures interest rates, making mortgage repayments difficult for many. This pressure resulted in a considerable increase in supply of new properties, which, in combination with a lack of mortgage affordability led to a slow and painful decline in prices over several years. Now, with the latest cuts pushing interest rates lower than they have been for 315 years, the pressure is lifted for many vendors who may have otherwise been forced to sell. It is therefore conceivable that we will see a constriction in supply over the next few months. Lower interest rates will, as always, help to increase demand from potential purchasers. This combination of changes in both demand and supply could lead to less downward pressure on house prices.” Whaaaa??? Atleast he said 'less doward pressure' and not price increases. I think he is correct. Just imagine how bad things would be for the housing market if interest rates were 8% to 15% like during the last crash. I personally dont think we will see more than a nominal 35% fall in the major housing averages because rates are so low this time. Quote Link to comment Share on other sites More sharing options...
pokercola Posted January 8, 2009 Share Posted January 8, 2009 The thing is, a mortgage is for 25 years. If you think we are enterning a 'new paridigm' of interest rates, and they will stay this low for 25 years of your mortgage, then the whole economy is so fuc*ed anyway that there will be much more HPC to come. If you think rates will have to rise then you recognise that interest rates are stupidly low at the moment and so it isnt a factor in your decision making. Quote Link to comment Share on other sites More sharing options...
1929crash Posted January 8, 2009 Share Posted January 8, 2009 Atleast he said 'less doward pressure' and not price increases.I think he is correct. Just imagine how bad things would be for the housing market if interest rates were 8% to 15% like during the last crash. I personally dont think we will see more than a nominal 35% fall in the major housing averages because rates are so low this time. Your only chance of being correct about the price drop is if the vampire banks stop sucking the credit out of the system to cover their toxic assets. Quote Link to comment Share on other sites More sharing options...
Penny Drop Posted January 8, 2009 Share Posted January 8, 2009 If deflation and wage stagnation (God forbid, wage decreases) become a serious problem then this will make the relative size of debt seem bigger (especially the mortgage)... Quote Link to comment Share on other sites More sharing options...
Timm Posted January 8, 2009 Share Posted January 8, 2009 (edited) The thing is, a mortgage is for 25 years.If you think we are enterning a 'new paridigm' of interest rates, and they will stay this low for 25 years of your mortgage, then the whole economy is so fuc*ed anyway that there will be much more HPC to come. If you think rates will have to rise then you recognise that interest rates are stupidly low at the moment and so it isnt a factor in your decision making. If one is rational, yes. As we have seen, most are not. Edited January 8, 2009 by Timm Quote Link to comment Share on other sites More sharing options...
Nautorius Posted January 8, 2009 Share Posted January 8, 2009 Well I agree with him! I had been made redundant last year and not found a job. Had income protection for 12 months and some savings plus redundancy. However if Mortgage rates were still at 5.5% I would have been forced to sell in the spring (presuming I had not found a comparable job). However because my mortgage has more than halved that will stretch my money from Oct 09 to Feb 10. I would not have been a forced seller as I could have taken a lower paid job and eecked it out until May 2011 without selling! So one less house on the for sale sites.....just adding another on the 'to rent' sites as rental cover is 1.8 times current mortgage! I know this is a 12/15 month dip and they will go up but by then I hope to be sorted out as I have a new job and am paying off every last bit of debt I have to reduce monthly outgoings.....unfortunately I am spending bugger all (Sorry Al and Gordo!!) N. Quote Link to comment Share on other sites More sharing options...
uptherebels Posted January 8, 2009 Share Posted January 8, 2009 I know this is a 12/15 month dip and they will go up I give up . Quote Link to comment Share on other sites More sharing options...
mightytharg Posted January 8, 2009 Share Posted January 8, 2009 Your only chance of being correct about the price drop is if the vampire banks stop sucking the credit out of the system to cover their toxic assets. I thought they were zombie banks! Anyone want to swap some garlic and a cross for a chainsaw? Quote Link to comment Share on other sites More sharing options...
Nautorius Posted January 8, 2009 Share Posted January 8, 2009 I give up . 12/15 month Dip in INTEREST RATES I meant...not House prices! They are knackered for much longer!! No need to give up....I know where we are going and it is not nice....so I am moving to Sunnier Climes where my cash will go further.... N. Quote Link to comment Share on other sites More sharing options...
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