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Killer Bunny

Ea Discussion

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In today to EA to sign new tenancy for new home we move into on the Saturday after the HPC pub night. Asked the sales mgr about the selling side. Once we got thru' his crap I asked about prices. He said about 3% down on last year.

How about next year I asked. 'Well, I'm no expert...' he replies. To which I interject with - 'well if you're not, who is?' He's been an EA since 1987!

Anyway major points were that he knew fack all about the macro position. Also, the main reason for the retention of prices was that the huge new devpt (Fairview) did a lot of selling below mkt (ie 4 bed for 3 bed prices) AND traded in buyers' houses for 5% more than mkt value. Then would sell thru' this agent for apparent mkt val.

THus, sold cheap, bought high and sold cheaper - so keeping transactions going (hence why trans'ns have not fallen thru' floor yet) and average prices solid

Finally, lots of flats in this devpt bought by BTLers ARE NOW ON THE MKT FOR SALE - ONLY MONTHS AFTER BEING BOUGHT FROM FAIRVIEW.

He was rather taken (Mrs FP said ashen-faced) with my analogy of the oil tanker taking a long time to turn ie this illiquid mkt, unlike speedboats ie equities

You just wait TTRTR etc :P

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If EAs understood economics they'd be even more dangerous than they are now...

I had a 'gentle debate' with an EA recently about the current situation, suggesting that the market was heading South. He argued it wasn't and couldn't understand that if it did, it would probably do him a favour by increasing his volumes. (he's the 50 year old manager of a big North London EA office, not a 19-year old novice)

He then came out with a corker: "Interest rates will go down before Xmas and again next year."

My response was: "What about the rise in inflation?"

His reply: "Well, if inflation goes up, they'll just put the rates down even more to control it..."

Nuff said.


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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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