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GCS15

Pop Goes The Real Estate Bubble

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Was feeling left out so I joined the herd and posted this article as well. :P

Let's not be too alarmist. Today is truly different from the past. There are no reliable historical precedents to fall back on, and one quarter does not make a trend. Still, that there could be such a drop in such a short length of time is very unusual. This is stock market behavior. Stocks go kerplunk! Real estate goes down with a whisper, like a slow leak in a tire--or, at least, it did.
Edited by GCS15

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These easily spooked amateurs are the kind of greedy little innocents who can start a landslide.

BOO!!

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A lot of these are vacation homes, but many are houses and condos bought by people with no experience and probably no talent for real estate in hopes of making a profit. These easily spooked amateurs are the kind of greedy little innocents who can start a landslide.

Once again it takes an American journalist to state the obvious, while in the UK media the 'greedy little innocents' are hailed as national heroes and given columns in the Sunday papers. The amount of good-will towards these BTL misfits in the UK press is unbelievable.

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Was mine the first sighting of this fabulous article?

http://www.housepricecrash.co.uk/forum/ind...topic=16993&hl=

Anyway, I too loved the anti-speculation tone of this piece. Tha Nation is in the Guardian/Independent ballpark in the US - our 'left of centre' media has happily pumped up the property mania with the best of them.

The pace of these falls are dramtic for sure. However, I'd say the massive fall in transation on the UK (down nearly 50% on 2004 in my area) is equally dramatic. It could happen that those laughable estate agent window prices are suddenly left high and dry.

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Was mine the first sighting of this fabulous article?

http://www.housepricecrash.co.uk/forum/ind...topic=16993&hl=

Anyway, I too loved the anti-speculation tone of this piece. Tha Nation is in the Guardian/Independent ballpark in the US - our 'left of centre' media has happily pumped up the property mania with the best of them.

The pace of these falls are dramtic for sure. However, I'd say the massive fall in transation on the UK (down nearly 50% on 2004 in my area) is equally dramatic. It could happen that those laughable estate agent window prices are suddenly left high and dry.

Yep. But a couple of ppl posted the article as well. So I thought I'd join the herd B)

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"Executives in the industry have sold off almost a billion dollars' worth of stock in their own companies this year, something they would not be doing if they thought the arrows were pointing upward."

If this is true and sells are significant and will continue, this is wondefull news for the bears. Executve trading in their company stock is highly correlated to their indusry short and medium term fortunes. Usually, they are the first who smell the rat.

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The American media certainly has a more jaundiced view of speculative buyers, as in this piece on the Las Vegas market, I wonder why the UK media is so pro rampant damaging speculation?

l

We ended up with two common stories in the local real estate market:

• Speculators who overpaid for houses that they first tried to flip for instant profit, and when that failed, they then sought to rent for more than most locals would pay. These speculators made up as much as two thirds of the market, according to some people in the real estate business.

• The other category, people who were upside down in their houses -- who owed more than the houses were worth -- also appeared in significant numbers.

I have no sympathy for the speculators who piled on to a hot but risky market -- they deserve their fate. Don't deal the play unless you're ready for what follows.

The Las Vegas Sun

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I wonder why the UK media is so pro rampant damaging speculation?

Let me guess: the average journalist owns six BTL two-bed 'executive apartments' and is scared stiff of a price drop that will bankrupt them?

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Let me guess: the average journalist owns six BTL two-bed 'executive apartments' and is scared stiff of a price drop that will bankrupt them?

Quite probably! <_<

By the way, the artical stated that executives in the business were selling their own company stock, clearly a very significant process, but how did the jorno find that out and do we know if the recent drop in UK builders shares was led by our execs doing a dirty!??

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how did the jorno find that out

I don't know about the UK, but I believe that in America significant sales by important insiders (e.g. company officers) have to be pre-announced and publically recorded due to 'insider trading' laws. I've seen links before to sites that track such sales, but don't have a URL.

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Thanks, I have seen similar statements on the LSE site, but I have no idea of how to track such statements. I'll do a google, and if I find anything I'll post back.

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Thanks, I have seen similar statements on the LSE site, but I have no idea of how to track such statements. I'll do a google, and if I find anything I'll post back.

This data is published by FT weekly. Of course by the time it hits FT its useless.

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  • 302 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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