Asking Prices At 2007 Prices

[threetimesdead]

the clear agenda of this Government is to restore credit to its pre crisis levels.

Nonsense

It was not the Government and not within the realms of the powers of any Government to bring the credit to its high of 2007

It is beyond the powers of any Government to "restore" those levels

And it cannot therefore be on the "agenda" of any Government to bring it back

[eric pebble]

Here's what you did say:

xx

Did you read my first post carefully? Others did here, and found it useful.

There was really no reason for you to take offense.

Yup - I agree.

[D.C.]

People talk about sentiment changing but too many people have had their fingers burnt to forget it so quickly and they aren't in a good enough financial position to do it again now, even if they wanted.

That depends really.

For sentiment to change people need to link cause and effect.

Until people think they were foolish to buy a crap flat for £300,000, their sentiment won't change.

People are 'victims of the global downturn'. They didn't do anything wrong, it was the nasty americans and bankers wot did it. Not them. Not their decisions.

Property only ever goes up, except when bankers are bad. But now that things are fixed they will keep on going up forever and ever and ever and I'll be rich with a big property portfolio. I made a good investment.

[eric pebble]

Makes sense.

I think the bounce has encouraged people to put their homes back "on the market", but they are doing so at highly delusional prices. They will soon find that they are not shifting, and then look around and see that the market is glutted with properties for sale. The only ones that will sell will be those at realistic prices. Then the agents will be stuck trying to convince all the new sellers that they have to cut their prices.

Meanwhile, as this drama of "chicken" is being played out, we are likely to see more forced sellers. The forced sellers will have to price their properties realistically, and that will soon begin to undermine this bounce.

A resumption of falls in the stock market, which I expect to see in September, if not sooner, will also undermine sentiment.

Good summary.