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VacantPossession

Rics And Savilles Up To Their Old Tricks

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Telegraph July 11th - see front page of HPC today.

Pockets of the country - including London, Oxford and Cornwall - are seeing a buoyant market as buyers fight to secure the best properties amid one of the most dramatic shortages of homes for sale in three decades.

Buyers fighting eh? Well no, not really, as we learn later:

At the (Savilles) estate agency's branch in Oxford, one in 10 properties is selling above the asking price while at its Truro branch, buyers have been queuing at the door before it has even been opened.

Really? Queuing at the door? This is outrageous spin. If one in 10 properties is selling above asking price that means that 9 out of 10 of them are either selling below asking price or equal to it. So this NON news is now being reversed to make it sound like suddenly the market is taking off. The polar opposite is true. It is neither taking off nor are their queues. I know this because my spies tell me that almost every agent office in Truro is mostly empty except for the odd negotiator filing their nails or pretending to look busy while serving precisely no-one in the branch.

Despite the fact that the fundamentals underpinning the market as a whole haven't shifted significantly, this has meant the sudden arrival of a glut of buyers hot on the heels of a period when little stock has come to the market. This has resulted in competitive bidding and, in some cases, a spike in values.

A glut of buyers? Competitive bidding? They have to be joking, and of course they are. But at least they admit:

However, there are fears that the mini boom will not last as a supply of repossessed properties is unleashed onto the market.

When activity increases very slightly and prices wobble a little for a limited period within an overall trend, this is now described as a "mini-boom". You've got to hand to them....they'll grasp on any glimmer of blue sky in between the thunder clouds. Quite sad really.

And finally, RICS returns to b()llshit mode right on queue:

The inventory of property on estate agents books has fallen sharply as the pick-up in buyer interest has failed to be matched by an increase in new instructions. The result of the mismatch between demand and supply has been to provide some support for house prices at a point when the economic climate is still quite challenging.

Actually it's fallen not sharply, but a little bit from its all time highest supply values for decades. But RICS is trying to persuade you that this means there is a "shortage". Absurd, dishonest spin of the kind we come to expect.

Don't be fooled by all this rubbish. The trend is still down, and will remain so until the last of the barely started repossessions is cleared away, and until employment stops falling, and until UK debt levels, still the highest in Europe, begin to show signs of correction. That is still a very long way off. Beware of these fairy stories....we've hardly entered the jaws of recession, let alone come out the other side.

Edited by VacantPossession

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the savilles marketing material gives them the look of a quality outfit but the stories they put out are pure filth... trying to use fear to sell houses rather than [and i suppose this would be preposterous] attempting to make any real claims about the quality or affordability of their stock.

why does this qualify as 'news' though? and why does the telegraph even print it? to please all those boomers fretting over the value of their 'pension's?

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Have you actually been involved in the market over the past 4 months? I have as a cash buyer with no chain.

Its is pretty much as they describe it actually.

Ive been looking to buy a house around the £150k mark in Nottingham over the past 4 months, and there is a massive shortage of property in the decent areas. All the rubbish is being sold for peak prices or above for some houses. Anything nice is attacting loads of offers after only a few days being on the market.

For example, a pretty nice semi in a ok area was asking £150k. We viewed it 12 hours after it had been on the market, and offered 140k. The estate agent said there are 5 offers, so give your maximum, we said £143k. 1 hour later it had sold to another cash buyer that offered "substantially" more than us. Being a cash buyer mean nothing anymore, people are getting crazy again. The really ******ed up thing is that the house next door was EXACTLY the same, and was asking £142500 5 months ago!

Its easy to sit back and pretend it isn't happening, but there is a mini boom occuring, and loads of people are getting drawn into it. Yes, lots of sales are falling through still, but if lending returned tommorow, prices would rocket.

If you are happy living in a shit area, there is no problem with supply, but anything decent is in short supply. Ive backed away from the market now, because I dont want to be involved with the madness, hopefully in 4 months things will settle down.

Edited by manbearpig

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Have you actually been involved in the market over the past 4 months? I have as a cash buyer with no chain.

Its is pretty much as they describe it actually.

Ive been looking to buy a house around the £150k mark in Nottingham over the past 4 months, and there is a massive shortage of property in the decent areas. All the rubbish is being sold for peak prices or above for some houses. Anything nice is attacting loads of offers after only a few days being on the market.

For example, a pretty nice semi in a ok area was asking £150k. We viewed it 12 hours after it had been on the market, and offered 140k. The estate agent said there are 5 offers, so give your maximum, we said £143k. 1 hour later it had sold to another cash buyer that offered "substantially" more than us. Being a cash buyer mean nothing anymore, people are getting crazy again. The really ******ed up thing is that the house next door was EXACTLY the same, and was asking £142500 5 months ago!

Its easy to sit back and pretend it isn't happening, but there is a mini boom occuring, and loads of people are getting drawn into it. Yes, lots of sales are falling through still, but if lending returned tommorow, prices would rocket.

If you are happy living in a shit area, there is no problem with supply, but anything decent is in short supply. Ive backed away from the market now, because I dont want to be involved with the madness, hopefully in 4 months things will settle down.

well, nice areas of nottingham are different, aren't they?

i do not believe that property anywhere in the country is 'flying off the shelves' at peak prices. it's totally implausible. let's say someone was prepared to pay £150k for this semi you were looking at... how could its value not have been higher [say £175-£200k?] at peak, when, due to loose lending, the number of people who'd have been able to afford to buy at that price would surely have been double what it is now :huh: ?

i'm sure there are exceptions to this, but not many.

Edited by the flying pig

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the savilles marketing material gives them the look of a quality outfit but the stories they put out are pure filth... trying to use fear to sell houses rather than [and i suppose this would be preposterous] attempting to make any real claims about the quality or affordability of their stock.

why does this qualify as 'news' though? and why does the telegraph even print it? to please all those boomers fretting over the value of their 'pension's?

Holiday/second+ home flogging/ramping time (Skool Holidays etc) coming up - innit?

Also 'Banker Bonus' is Back - Big time! All those areas mentioned = 'prime' markets.

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well, nice areas of nottingham are different, aren't they?

i do not believe that property anywhere in the country is 'flying off the shelves' at peak prices. it's totally implausible. let's say someone was prepared to pay £150k for this semi you were looking at... how could its value not have been higher [say £175-£200k?] at peak, when, due to loose lending, the number of people who'd have been able to afford to buy at that price would surely have been double what it is now :huh: ?

i'm sure there are exceptions to this, but not many.

I believe there was a genuine spring bounce that saw lots of the better properties go under offer, probably a good number to cash buyers or buyers in good positions. Those in chains saw a number break down. We are now back and have been for a good month to the crash and it will be downhill from now. I do not see any more bounces until at least next spring but somehow I doubt it even then. 20% to go maybe 25%. I'm not a the coal face, but would I be right?

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Holiday/second+ home flogging/ramping time (Skool Holidays etc) coming up - innit?

Also 'Banker Bonus' is Back - Big time! All those areas mentioned = 'prime' markets.

Yes, one hopes they can afford good security and protection for these properties. If I were a banker I'd be looking further afield and hoping Virgins spaceship works in time.

Once the spending taps get turned off (under orders perhaps from the IMF) then the bankers bonus situation will become totally unacceptable to the masses.

Edited by HostPaul TAFKA Rover2000

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Guest pioneer31

I want to know why Ray Boulger has featured on every damn financial programme in the last week.

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I put my house on the market recently as I wanted to move to a different part of England. The estate agent advised me to accept 20% off peak 2007. I ignored him and insisted on peak. And I got it within 3 weeks.

Can't last of course, but there you are. Suckers' rally gives everyone one last chance to lose their money.

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