Rics Are Bonkers

[VacantPossession]

Oh dear.....what a cliche: RICS want an immediate FALL in interest rates. This is their "intelligent" reaction to what they perceive as a 1% fall in property. Never mind the 100% rises of the years before. Yes folks, a 1% fall is enough to panic RICS into insisting on a rate cut to "save" the housing market.

How crassly idiotic to imagine a quarter of a percent IR cut will stop the trend, and how utterly stupid not to realise that the OPPOSITE is what they need if they want a bit of easy valuation work. The market will only get moving again, so they can make their money for old rope, if PRICES reduce.

They just don't get it: The crisis, if there is one, is simply that houses are too expensive and this is why no-one's buying them. They are not refusing to buy because houses are dropping 1%. They are refusing to buy because houses are overvalued by at least 40%. When will they get the message....FTB's have had enough. They are sick of digging deep to pay for the unearned profits of others.

VP

Edited July 19, 2005 by VacantPossession

[Veritas]

Excellent post VP. This is exactly what I think whenever I hear cries for lower IR's. One day its the housebuilders, the next the EA's. ALL without question think the a couple of downward shuffles on the BoE rate will restore their personal gravy train. NONE will admit to the rampant excessive prices which have totally strangled the market.

I just wish some sharp journo would put it to these guy's just like you did in your post. PRICES not IR's are the problem! That would shut them up.

Edited July 19, 2005 by Veritas

[Warwickshire Lad]

PRICES not IR's are the problem!  That would shut them up.

<{POST_SNAPBACK}>

I totally agree and I'm finding it very tiring and also somewhat irritating that the moment house prices are seen to be falling - the solution is to slash IRs again which is precisely what got us into this mess.

The fact that house prices are undergoing a correction should be seen to a HEALTHY sign. Everyone knows they are overpriced and what's the matter with a correction ?

On the one hand the vested interests tell us it's all going to be a "soft landing" and on the other they're squealing for rate cuts.

They are all remarkably two-faced.

In the week prior to the next MPC meeting, expect the rate cut calls to reach fever pitch.

[A Fool & His Borrowed Money]

The fact that house prices are undergoing a correction should be seen to a HEALTHY sign.  Everyone knows they are overpriced and what's the matter with a correction ?

On the one hand the vested interests tell us it's all going to be a "soft landing" and on the other they're squealing for rate cuts.

They are all remarkably two-faced.

<{POST_SNAPBACK}>

It's because the vested interests have put all their eggs in the BTL portfolio basketcase & know that the consequences of a crash will financially castrate them