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Mrs Bear

Change Of Sentiment In The Media - Today's Sunday Times

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In the Property section today, large double page article, huge headline' 'We've hit the ceiling', re London prices.

Smaller highlight says, 'Bought as a wreck, this London home has seen its price jump by £1.08M in two years. This bubble simply can't go on.'

It's not long since you would NEVER have read anything like this in the P section - it was all about house prices 'improving' , etc., with the implicit 'Hooray!'

They do also mention homes in the quarter to half million price bracket - not often bothered with. 'Frenzied open house viewings have largely been shelved and EAs are reporting fewer buyers and more properties coming on to the market. In some cases banks are even "down valuing" homes.'

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Let them find buyers.


Rightmove Index June 2014
Shipside notes: “Many serious buyers who were waiting in the wings have now bought and moved in, taking a slug out of the pent-up demand for a few years to come, and the consequent chatter on the street is that quality buyers are now thinner on the ground. The next wave of buyers may have less motivation or ability to buy and sellers are going to have to be sensitive to their local market and not pitch their asking prices too high as choosy buyers will not arrange to come and visit.”

It won't be me without buying, until there's a big hpc. Suffered maximum maximum pain and I sure won't be jumping to buy at 10% off prices which have left me numb.

Experimenters put rats in boxes with lids, and applied mild electric shocks of the kind a human might get after shuffling across a carpet and touching a door knob. The shocks were unpleasant but not harmful. The rats responded in the natural way by attempting to leap out of the boxes, but the closed lids frustrated their escape. After repeated failure, they ceased to try. Even when the lids were removed, and the shocks reapplied, the rats remained apathetic. They no longer sought escape from unhappiness, even though the obstacle that previously held them back had been removed.

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Why would someone say they are interested....make an offer, offer accepted and then suddenly want a second independent valuation before exchange?...... :unsure:

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Why would someone say they are interested....make an offer, offer accepted and then suddenly want a second independent valuation before exchange?...... :unsure:

Because they know the bubble is bursting, and don`t want to miss out on a cheaper house?

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I suspect the rise of Rightmove and Zoopla is responsible for the bearfood in the mainstream press. We've seen quite a bit of it in the last few years (as noted, for example, here).

The mainstream press has traditionally been heavily reliant on advertising revenue. And their biggest stream was the estate agents. So they simply had to feed the bull, lest they antagonised or even cut off the hand that fed them.

Now the websites have taken the main market from them, that revenue stream is down to a trickle. So now they've got nothing much to lose, they're free to publish what they really think. Which I guess encompasses a range of different views, including plenty of the negative comment they'd've avoided in times past.

Edited by porca misèria

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I suspect the rise of Rightmove and Zoopla is responsible for the bearfood in the mainstream press. We've seen quite a bit of it in the last few years (as noted, for example, here).

The mainstream press has traditionally been heavily reliant on advertising revenue. And their biggest stream was the estate agents. So they simply had to feed the bull, lest they antagonised or even cut off the hand that fed them.

Now the websites have taken the main market from them, that revenue stream is down to a trickle. So now they've got nothing much to lose, they're free to publish what they really think. Which I guess encompasses a range of different views, including plenty of the negative comment they'd've avoided in times past.

Just think how many estate agents will be advertising "Deal of the Century" after a crash though.

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I suspect the rise of Rightmove and Zoopla is responsible for the bearfood in the mainstream press. We've seen quite a bit of it in the last few years (as noted, for example, here).

The mainstream press has traditionally been heavily reliant on advertising revenue. And their biggest stream was the estate agents. So they simply had to feed the bull, lest they antagonised or even cut off the hand that fed them.

Now the websites have taken the main market from them, that revenue stream is down to a trickle. So now they've got nothing much to lose, they're free to publish what they really think. Which I guess encompasses a range of different views, including plenty of the negative comment they'd've avoided in times past.

Last few years? The comments on that link are dated 2011. Oh for 2011 prices around here. A long way back to that, pre HTB and new general market / bomad / BTL buying at higher prices frenzy 3.0, and another round of victims paying crazy prices, and posing in happy photos to the press how smart they've been to buy.

There's not been much bearfood at all. We are skin and bone bears.

I'm hoping any increase in just reflects market realities. Not made up nonsense, but realities. Money, the cost of it, the supply and demand for it, those owners willing to accept lower prices to exit the market... which very few owners (victims) comprehend brings down the value of their homes. They understand HPI perfectly well when someone buys on their road for £50,000 more than a house has ever sold at before. It lifts the value of their home by an approximate amount. They wilfully don't understand it when owners begin selling for less.

It would serve EAs well to get more supply. They've just about got by ok on trickle of those paying very high prices in frenzy 3.0. Roads around here have been leafleted for years, with EAs trying to encourage owners to sell - got buyers waiting. Few go for it against even more HPI in reality and expectations of even more. It's in their interests for EAs to get supply onto the market.

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Great stuff. The mood music is building, the sheeple are being prepped.

Yeah, I'd say so.

Isn't the Times owned by Rupert Murdoch? If stories like these start to become more common in his newspapers then I'd say it's more evidence the Government are attempting to engineer a 'soft landing' by tinkering with regulation and altering sentiment.

A futile plan I'd have thought.

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Yeah, I'd say so.

Isn't the Times owned by Rupert Murdoch? If stories like these start to become more common in his newspapers then I'd say it's more evidence the Government are attempting to engineer a 'soft landing' by tinkering with regulation and altering sentiment.

A futile plan I'd have thought.

Yep, when the Great Thunderstorm finally breaks, and the rain starts to pour, there will be panic because so many are going to be caught without their brolly.

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Just wait until the BBC all get back off their annual jolly to Glastonbury, there'll be a lot of articles coming out in the media to put HPI worship back to rights.

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It would serve EAs well to get more supply. They've just about got by ok on trickle of those paying very high prices in frenzy 3.0. Roads around here have been leafleted for years, with EAs trying to encourage owners to sell - got buyers waiting. Few go for it against even more HPI in reality and expectations of even more. It's in their interests for EAs to get supply onto the market.

I've made a big deal of the fact that EA's pump the market because sellers are their customers rather than buyers, and their business model dictates that to maximise profit they must find as many buyers per seller as possible. But I do wonder whether it's not just the business model, but the market conditions that cause this. If the market turns from a sellers market to a buyers market, I think the most profitable strategy could become to acquire as many sellers per buyer in order to turn that buyer into a sale, putting downward pressure on prices rather than upward.

If EA's switched their allegiance like this, it would work wonders.

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