Jump to content
House Price Crash Forum
Realistbear

S K Y: " House Prices Dip "

Recommended Posts

http://news.sky.com/skynews/Home/Business/First-Time-Buyers-Down-As-House-Prices-Edge-Lower-Research-By-Rightmove-And-Hometrack-Suggests/Article/201008415708938?lpos=Business_Carousel_Region_2&lid=ARTICLE_15708938_First-Time_Buyers_Down_As_House_Prices_Edge_Lower%2C_Research_By_Rightmove_And_Hometrack_Suggests

7:43am UK, Monday August 30, 2010
Huw "Hugh" Borland, Sky News
The number of people looking to buy their first home fell sharply during the past year - as house prices edged lower in August.

Nice when good news makes the headlines. Still not "crash" headlines though.

Share this post


Link to post
Share on other sites

Daily Mail add a bit of spice to the good news:

http://www.dailymail.co.uk/news/article-1307242/Crisis-time-buyers-hit-new-low.html

Crisis as first-time buyers hit new low - and there's worse to come

By Becky "Rebecca" Barrow

30th August 2010

The number of people planning to buy their first home has slumped to the lowest level since records began

The housing market is in the grip of a first-time buyer crisis which is likely to get even worse, a report warns today.

The number of people planning to buy their first home has slumped to the lowest level since records began.

Experts warn the ‘death of the first-time buyer’ could have a devastating impact on the market.

:D:D:D

Share this post


Link to post
Share on other sites

snip

Experts warn the 'death of the first-time buyer' could have a devastating impact on the market.

:D:D:D

you mean the sort of devastation where First time buyers might actually find entering the market a good deal.

the sort of devastation where they arent having to borrow from friends and family and take an IO Mortgage just to "get on the ladder", andeven then they can get a "free" loan for the balance from a Homebuy Scheme.

Share this post


Link to post
Share on other sites

http://www.dailymail.co.uk/news/article-1307242/Crisis-time-buyers-hit-new-low.html

The pro-crash green arrows are flying on the comments section--huge number of responses since I posted a few minutes ago. Get em in folks.

The article heavily paraphrases a Rightmove report which is a bit strange as RM are one of the main industry VIs.

Usual side swipe at the government and banks for not helping out but I think that the article is being discreetly aimed at sellers themselves in order to “soften them up” re asking prices (to hopefully increase turnover)

Share this post


Link to post
Share on other sites

The article heavily paraphrases a Rightmove report which is a bit strange as RM are one of the main industry VIs.

Usual side swipe at the government and banks for not helping out but I think that the article is being discreetly aimed at sellers themselves in order to “soften them up” re asking prices (to hopefully increase turnover)

I don't think it's really that strange, Rightmove seem to get that threats to their business are from reduced volume (and presumably interest in house buying, although the following article suggests otherwise) and bust EAs.

http://www.guardian.co.uk/business/2010/aug/27/rightmove-record-interest-househunters

The company was confident its plans for 2011 would deliver further growth in average advertising spending. "We do not believe such an outlook need be materially affected by flat, or modest falls in, house prices, provided that transaction volumes do not take a sharp downward turn and cause our customers to cease trading.
Edited by rented

Share this post


Link to post
Share on other sites

The comments on the Daily Mail article make for good reading, as do the little arrows.

There are some great comments and I don't believe they are all from HPC'ers, so perhaps people are finally getting it. (even if 55% of people say 'mortgage problems' are holding them back rather than 'stupid askign prices')

The last line says it all: "Economically, we are not at a stage where first-time buyers can afford to stump up enormous deposits, nor are lenders willing to take risks on buyers with little equity."

This tells me that falls are inevitable.

Share this post


Link to post
Share on other sites

This is still the main problem:

The availability of mortgages continued to be people's main concern about buying a home.

Many first-time buyers quizzed in the survey (55%) said mortgage-related issues, like raising a deposit, were among their biggest worries.

But people were less concerned about house price falls, with 73% saying they thought prices would be around the same or higher in 12 months' time.

Banks are the only factor holding the sheeple back. The sheeple is still very eager to buy. The question is: will the sheeple always be eager? Will "expectations" ever be negative?

Share this post


Link to post
Share on other sites

The comments on the Daily Mail article make for good reading, as do the little arrows.

There are some great comments and I don't believe they are all from HPC'ers, so perhaps people are finally getting it. (even if 55% of people say 'mortgage problems' are holding them back rather than 'stupid askign prices')

The last line says it all: "Economically, we are not at a stage where first-time buyers can afford to stump up enormous deposits, nor are lenders willing to take risks on buyers with little equity."

This tells me that falls are inevitable.

Good post.

Share this post


Link to post
Share on other sites

The comments on the Daily Mail article make for good reading, as do the little arrows.

There are some great comments and I don't believe they are all from HPC'ers, so perhaps people are finally getting it. (even if 55% of people say 'mortgage problems' are holding them back rather than 'stupid askign prices')

The last line says it all: "Economically, we are not at a stage where first-time buyers can afford to stump up enormous deposits, nor are lenders willing to take risks on buyers with little equity."

This tells me that falls are inevitable.

This backs up what some local EAs were telling me recently about it being almost impossible for people in the area to get a mortgage now and that many of the banks will only lend 2.5 times salary.

I was talking to some other HPCers about this and wonder whether this is something that some of the banks are now doing in Public Sector dominated areas of the UK. In the past having a Public Sector job was a condition of security so they loved lending to PS workers but perhaps no longer?

Share this post


Link to post
Share on other sites

Wow these DM comments... it is a total wipe out.

I think the masses are stirring, it cant just be us.

Yup just logged into another PC and done the "arrows thing" :lol:

Share this post


Link to post
Share on other sites

I don't think it's really that strange, Rightmove seem to get that threats to their business are from reduced volume (and presumably interest in house buying, although the following article suggests otherwise) and bust EAs.

http://www.guardian.co.uk/business/2010/aug/27/rightmove-record-interest-househunters

RM needs firstly, more estate agents and secondly, more listing.

Incorrect (too high) price = no transaction = estate agent got no money / go burst = bad for RM.

What RM and EA need are a transacting market.

Share this post


Link to post
Share on other sites

This is still the main problem:

Banks are the only factor holding the sheeple back. The sheeple is still very eager to buy. The question is: will the sheeple always be eager? Will "expectations" ever be negative?

People have had 10 years of property porn brainwashing from the likes of the BBC, Channel 4, etc. Add to that all the people they meet in work, at the hairdressers, etc, who tell them how they have made a fortune from house buying, got the new flash car, etc, etc.

It is going to need sustained news of repossessions, bankruptcies, etc, etc.

That story I posted last week about the 'Swansea tycoon' - local paper's headline and not mine - who had his commercial property empire devalued by 30 million and taken over by RBS has been the talk of S'sea. I have bumped into so many people who are actually shocked that this man has lost his empire - they are almost taking it personally and the nubmers of times this week I have heard people say "But he was a tycoon..." ... they can't get their heads around the fact that someone they perceived to be so rich has lost so much and that he lost it through property... penny still not dropping yet though IMPO.

Share this post


Link to post
Share on other sites

(...)

I was talking to some other HPCers about this and wonder whether this is something that some of the banks are now doing in Public Sector dominated areas of the UK. In the past having a Public Sector job was a condition of security so they loved lending to PS workers but perhaps no longer?

It looks like it. See this, from a bloomberg news:

_________________________

"Hillier, 24, a clerk at the local council in Caerphilly, South Wales, said in an interview. (...)

For workers like Hillier, there’s little point in even thinking about buying a home right now. “It was going to be hard enough to save the money for a deposit,” he said. “But now, if you go to the bank to ask about a mortgage and you tell them you’re in the public sector, they make you understand that it just isn’t worth it.”

(...)

_________________________

http://www.bloomberg.com/news/2010-08-26/house-prices-face-cameron-chopping-block-as-budget-cuts-sap-buying-power.html

Share this post


Link to post
Share on other sites

It looks like it. See this, from a bloomberg news:

"Hillier, 24, a clerk at the local council in Caerphilly, South Wales, said in an interview. (...)

For workers like Hillier, there’s little point in even thinking about buying a home right now. “It was going to be hard enough to save the money for a deposit,” he said. “But now, if you go to the bank to ask about a mortgage and you tell them you’re in the public sector, they make you understand that it just isn’t worth it.”

(...)

http://www.bloomberg.com/news/2010-08-26/house-prices-face-cameron-chopping-block-as-budget-cuts-sap-buying-power.html

Wow! Fascinating. Brilliant news actually. That just confirms what the EAs were telling me and what we were guessing was just beginning.

Brilliant.

Share this post


Link to post
Share on other sites

http://www.dailymail.co.uk/news/article-1307242/Crisis-time-buyers-hit-new-low.html

The pro-crash green arrows are flying on the comments section--huge number of responses since I posted a few minutes ago. Get em in folks.

Excellent comment in the Mail:

The banks are not lending because they too see house prices falling over the next few years. Why would anyone lend money on a depreciating asset? It was a bubble, it burst, like all bubbles eventually do. More people need to accept it

- Adam Fevre, Paris France, 30/8/2010 8:26

Is the author around? Nice job.

I think it deserves more votes there (arrows up!).

.

Edited by Tired of Waiting

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.