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Realistbear

Nationwide: Confidence Has Collapsed

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http://www.bloomberg.com/news/2010-11-12/u-k-consumer-confidence-drops-to-19-month-low-before-budget-squeeze-plan.html

U.K. Consumer Confidence Drops to 19-Month Low Before Budget Squeeze Plan
By Svenja O’Donnell - Nov 12, 2010 12:01 AM GMT
U.K. consumer confidence fell to a 19-month low in October as Britons braced themselves for the
deepest budget cuts
most severe house price crash since World War II, Nationwide Building Society said.

Reality slowly dawns. Not many people are going to be paying full asking prices in this climate of doom.

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http://www.bloomberg.com/news/2010-11-12/u-k-consumer-confidence-drops-to-19-month-low-before-budget-squeeze-plan.html

U.K. Consumer Confidence Drops to 19-Month Low Before Budget Squeeze Plan
By Svenja O’Donnell - Nov 12, 2010 12:01 AM GMT
U.K. consumer confidence fell to a 19-month low in October as Britons braced themselves for the
deepest budget cuts
most severe house price crash since World War II, Nationwide Building Society said.

Reality slowly dawns. Not many people are going to be paying full asking prices in this climate of doom.

Did anyone really ever pay full asking price ?

Consumer confidence is going to be one of the key factors which will define how this pans out ( steep and deep, long and slow etc)...... we'll see I think low consumer confidence continuing for a little while ( until the new year perhaps) when there may be a change driven by people's irrational fears about the pace of change the cuts will create not materialising, the media agenda will also have swithced by then I should think as they hate reporting one way traffic for more than a little while ( regardless of the stats).... recently it's been cuts doom and gloom but that will change as broedom sets in and they run out of ways to say double dip.

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http://www.bloomberg...ueeze-plan.html

U.K. Consumer Confidence Drops to 19-Month Low Before Budget Squeeze Plan
By Svenja O'Donnell - Nov 12, 2010 12:01 AM GMT
U.K. consumer confidence fell to a 19-month low in October as Britons braced themselves for the
deepest budget cuts
most severe house price crash since World War II, Nationwide Building Society said.

Reality slowly dawns. Not many people are going to be paying full asking prices in this climate of doom.

the bank valuations will sort it out soon ....

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http://www.bloomberg.com/news/2010-11-12/u-k-consumer-confidence-drops-to-19-month-low-before-budget-squeeze-plan.html

U.K. Consumer Confidence Drops to 19-Month Low Before Budget Squeeze Plan
By Svenja O’Donnell - Nov 12, 2010 12:01 AM GMT
U.K. consumer confidence fell to a 19-month low in October as
Britons braced themselves for the
deepest budget cuts
most severe house price crash since World War II, Nationwide Building Society said
.

Reality slowly dawns. Not many people are going to be paying full asking prices in this climate of doom.

As Yves Smith remarked in a recent interview "The turkeys have voted for Thanksgiving".

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Did anyone really ever pay full asking price ?

Consumer confidence is going to be one of the key factors which will define how this pans out ( steep and deep, long and slow etc)...... we'll see I think low consumer confidence continuing for a little while ( until the new year perhaps) when there may be a change driven by people's irrational fears about the pace of change the cuts will create not materialising, the media agenda will also have swithced by then I should think as they hate reporting one way traffic for more than a little while ( regardless of the stats).... recently it's been cuts doom and gloom but that will change as broedom sets in and they run out of ways to say double dip.

I remember the days when people paid MORE than asking price just to get on the ladder.

This slump in confidence may have the reverse effect on the indices which still feed on bad news as buy signals.

Edited by Realistbear

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I remember the days when people paid MORE than asking price just to get on the ladder.

This slump in confidence may have the reverse effect on the indices which still feed on bad news as buy signals.

Earlier this week I was talking to an EA in Swansea - one who I personally think over-values asking prices by 20% to 30% and which one other EA commented to me this week "I don't know what planet he is on?" - who told me that he had paid over the asking price in 2007 for his own house when he got in a bidding war.

I thought "That explains a lot!"

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I remember the days when people paid MORE than asking price just to get on the ladder.

This slump in confidence may have the reverse effect on the indices which still feed on bad news as buy signals.

You must be older than me... I bought my first home in 1992 and have bought four times since and never paid anything more than 90% of the asking price. Although I would agree that there are a number of people out there with the British disease which is a seeming disability over negotiation.

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Did anyone really ever pay full asking price ?Consumer confidence is going to be one of the key factors which will define how this pans out ( steep and deep, long and slow etc)...... we'll see I think low consumer confidence continuing for a little while ( until the new year perhaps) when there may be a change driven by people's irrational fears about the pace of change the cuts will create not materialising, the media agenda will also have swithced by then I should think as they hate reporting one way traffic for more than a little while ( regardless of the stats).... recently it's been cuts doom and gloom but that will change as broedom sets in and they run out of ways to say double dip.

Is that really a serious question? During the peak of the boom many were not only paying full asking, they were bidding over.

My younger was doing Saturdays with a local EA in 06 - during just one weekend they sold 7 properties and more than one buyer was offering brown envelopes to get them to the top of the bidding pile.

To be fair to the EA, they did tell them in best officer-and-gentleman mode that this was not the way they did business.

But then that particular EA is also very unusual in that all their blurbs are entirely literate. ;)

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How strange.

The Nationwide themselves seem to see things very differently.

Confidence Stabilises in October.

You are right, Nationwide did the survey last month!

The index of sentiment slipped 1 point from September to 52, the lowest since March 2009, the customer-owned lender said in an e-mailed statement today. The measure of consumers’ future expectations fell 4 points to 70, also a 19-month low. TNS-RI questioned 1,000 people for
Nationwide from Sept. 20 to Oct. 17
.

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Is that really a serious question? During the peak of the boom many were not only paying full asking, they were bidding over.

My younger was doing Saturdays with a local EA in 06 - during just one weekend they sold 7 properties and more than one buyer was offering brown envelopes to get them to the top of the bidding pile.

To be fair to the EA, they did tell them in best officer-and-gentleman mode that this was not the way they did business.

But then that particular EA is also very unusual in that all their blurbs are entirely literate. ;)

Yes it is a serious question see my later response... I suppose for you I could re-phrase it and say... is there really anyone out there who thought during the boom years that they had to bid over the odds to get a property to tick their boxes ?... only those suffering from a disability of not being able to negotiate would say yes..... home many times in good times and bad have I heard people say " I wonder if I can get them to take a few thousand off"... some people apparently never ever seem to think in terms of percentages.... £30,000 off a £300,000 house is the same as £10000 off a £100000 house although I am sure you'll find hge swathes of people feeling comfortabe asking for the latter and not the former.

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Every time someone says double dip I think of this:

bassetts%20dip.jpg

The term double dip always brings back the memory when I was a young lad on work placement at a local engineering company. A big old greasy engineer comes up to and asks if I had dipped my bread in the gravy yet..........I was 14, I hadn’t

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I remember the days when people paid MORE than asking price just to get on the ladder.
I remember someone at work saying "Guess what, I've just made £10,000!". What had happened is that a buyer had just offered £10K over the asking price, gazumping another buyer in the process. That was over 20 years ago, though, in the late 1980's property boom. In terms of property prices, £10K then would equate to about £30K now I reckon. Certainly during that boom it was commonplace for buyers to offer above the asking price, and sellers were also able to pretend, with credibility, they'd had a higher offer, even if they hadn't had one. Edited by Hyperduck Quack Quack

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Did anyone really ever pay full asking price ?

I've just offered asking price (after an 7% drop from initial asking), should exchange contracts any day now.

Anything else I have offered on in for the last 3 years has gone for more than asking price. One house went for +49% (relative to initial asking), another went for +83% (relative to auction guide). I have a pretty small search area to suit work, dependent relatives and school catchment area.

These are all properties that need a lot of work doing to them, EA's price those very inaccurately IMO since they dont know what buildings works cost.

Am I a mug, quite possibly, but I have less and less faith the current financial system is going to last and my cash is looking more like empty promises than a store of value.

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  • 238 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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