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For the market to realise?

http://www.moneyweek.com/article/1251/inve...rty-market.html

Every indipendent analysis seems to be seeing the obvious.

People have the same access to the same money they did a year ago.. perhaps the buyers and sellers will take a little time to realise what is happening.

This website is made up of the educated minority.. But what of the majority.. The ones who don't come here..

They make their decisions from what they see to.. and First Time Buyers are gone.. the perception will take a while to lead us through to the result we need.

But we all see the unsold apartments.. The BTL Landlords holding property that has already cost them money..

How does a landlord sell a property that has lost them money..? if they can't pay of the mortgage they have... there is a very hard conversation ahead with the Bank.. and until that happens.. they are still loosing money... How many are waiting for the profits that they gave to those they bought the properties of..

How do they feel, having passed thousands of pounds worth of profit to the seller when they bought. and now see a loss...? How do they cope each month as the property eats into their own money as they subsidise the rent..?

this is it happening..

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After the dot.com bust, many investors refused to sell their near worthless shares, hoping beyond hop that they would rise back to even higher levels (or break even). Most continued to slide and went bust.

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After the dot.com bust, many investors refused to sell their near worthless shares, hoping beyond hop that they would rise back to even higher levels (or break even). Most continued to slide and went bust.

When I was a teenager I made my first share purchase. £200 on an engineering co. The shares plummeted, but I held on. Then they went bust, and I waved goodbye to my hard-earned £200 (my saturday job only paid £2 an hour back then).

But I learnt a valuable lesson! <_<

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Thats really interesting, I hadn't thought of it like that before. I guess that it would be like a retailer/company reporting on the average gross margin per sale, without bothering to mention the total value of sales.

For a true reflection of the performance of the market then, you'd need to multiply the number of house sales per quarter by the average price. Then you'd be able to see how much the total market is worth, & how it has been performing over time.

I think it's self evident that we'd see that we're already sliding down the slope after the peak.

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Interesting to see the difference that it makes depending on the figures you care to look at. The average price is probably lagging behind the true worth of the market due to seller expectations & denial that the market is dropping.

Another interesting thing is that you can see that the apparently small dip in average prices at the top of the graph has in fact dealt a devastating blow to the market itself, with a loss of over 20% of it's value.

Also, I guess that the little rise at the end of the market worth is the reaction to the interest rate cut - not much, but it will be interesting to see what happens over time.

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  • 301 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%



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