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The Preacherman

Rics Warn Of Bubble

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When the VIs call a bubble it's time to run for cover.

Soaring house prices spread across UK as surveyors warn of another bubble

Poll shows fastest rise since late 2006 peak, with Rics saying Osborne schemes risk pushing prices to unaffordable levels

http://www.theguardian.com/business/2013/sep/10/house-prices-soar-uk-surveyors-housing-bubble

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Heard a story this week of an EA who went around a house to do a valuation and told the owner to put it on for 450 to 500K. Another EA told the owner to put it on for over 1 million.

Busy road in area where no house has sold for anywhere near a million. Not even a sea view.

I can give more examples.

Bubble? Yep. Some EAs are now out of control IMPO. ZIRP is allowing them to ramp to ludicrous asking prices now.

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Heard a story this week of an EA who went around a house to do a valuation and told the owner to put it on for 450 to 500K. Another EA told the owner to put it on for over 1 million.

Busy road in area where no house has sold for anywhere near a million. Not even a sea view.

I can give more examples.

Bubble? Yep. Some EAs are now out of control IMPO. ZIRP is allowing them to ramp to ludicrous asking prices now.

Yet still the land registry falls....

They are shooting themselves in the foot.

I guess anyone with half a brain cell has stopped looking for a house now.

"Rics saying Osborne schemes risk pushing prices to unaffordable level"

That is a priceless quote, They are already unaffordable, that's why the whole system collapsed.

I dont think Osbornes crazy schemes are going to work much longer, I did a search on rightmove NN1 + 40 miles today, at least 30 house listed above £850K....a lot of people now think it's time to sell...

There has never been a worse moment to by a house, asking prices are going to 2007 + 40%.

Insanity.

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Rising prices and growing demand have also driven a jump in the number of people putting their homes on the market, according to the Royal Institution of Chartered Surveyors (Rics).

...they are putting it on the market because they are well aware that there is a bubble......who has the money to buy/borrow into that bubble?......there maybe a demand from some, but nothing will sell if there is no money to buy what is demanded, there will be no buying without a sale to make a purchase possible......... every chain has a top and a bottom, when the bottom falls through the top collapses to. ;)

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...they are putting it on the market because they are well aware that there is a bubble......who has the money to buy/borrow into that bubble?......there maybe a demand from some, but nothing will sell if there is no money to buy what is demanded, there will be no buying without a sale to make a purchase possible......... every chain has a top and a bottom, when the bottom falls through the top collapses to. ;)

From what I saw the bottom of the market did collapse but the middle and top just sat there waiting to sell, literally for the last 5 years..

I guess TPTB are hoping the bottom of the market backed by cheap rates and government deposits will move the bottom up to meet the middle/top and everyone will be rich again...except those at the bottom of the pyramid of course.

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Heard a story this week of an EA who went around a house to do a valuation and told the owner to put it on for 450 to 500K. Another EA told the owner to put it on for over 1 million.

Busy road in area where no house has sold for anywhere near a million. Not even a sea view.

I can give more examples.

Bubble? Yep. Some EAs are now out of control IMPO. ZIRP is allowing them to ramp to ludicrous asking prices now.

what is a few milllions between friends these days ...

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I'm seeing crazy ASKING prices around my area in SE15. These are what were the cheaper roads in the SE15 postcode.

This one: Hollydale Road £599k UNDER OFFER Hollydale

Hollydale average under £400k according to Zoopla Hollydale

This one: Brabourn Grove £750k: Brabourn Grove

Brabourn average under £350k according to Zoopla Brabourn

This one: Lausanne Road £750k UNDER OFFER: Lausanne Road

Lausanne Road average around £350k according to Zoopla Lausanne

Ok these arent sold prices but the asking prices are circa 50% ABOVE comparable sold prices. This is just one EA but I'm seeing similar in SE4 and SE23 (location of the now infamous £350k shed).

FUBAR. Hopefully this is the break-up boom. If not, we're moving to a place where you have to be on banker's salary to be a property owner, certainly in London. Everyone else, 10% shared ownership of a 1 bedroom flat in a tower block. (If you're stupid enough to want in that bad.)

I can already see the effect this purging of non upper middles is having on the demographic. Your typical residents: he drives an audi, she pushes a bugaboo. Plebs out.

edit: bit more bold never hurt :D

Edited by ticket2ride

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It's OK Mark Carney is watching it carefully. He won't do anything but he is watching it. This boom is just what George wants to help win the election. Buy now or you will miss out and rent forever.

Buy now and you'll wish you'd decided to rent forever!

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It's OK Mark Carney is watching it carefully. He won't do anything but he is watching it. This boom is just what George wants to help win the election. Buy now or you will miss out and rent forever.

He isnt watching it....he IS watching lending costs.

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From the original link:

Rising prices and growing demand have also driven a jump in the number of people putting their homes on the market, according to the Royal Institution of Chartered Surveyors (Rics).

Need some of these owners coming to market help other sellers begin to blink. More inventory.. oh-oh.

Then EAs to get frustrated with the new supply, but not enough selling. More sellers to market is bound to start making them think of the potential commissions, even if that comes at lower prices. Begin to lean and get real with sellers on their books. That would be good. Also...

A lot of EAs are going to start seeing their advertising costs rocket and no corresponding increase in revenues.

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Do you think its a double bluff from the Conservatives?

Maybe they think that they will not get power in the next election so they want to hand Labour a complete mess when/if they take over?

I have no Idea.... perhaps the conservatives really are so dumb and learned nothing from the crash. With the Millipede I don't think that Labour is going to be a clear win next election???

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