Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

" Property Agents Boost Sales Promotions To Combat Slowing Market"

Recommended Posts

http://uk.biz.yahoo.com/31082007/325/right...ing-market.html

Friday August 31, 09:26 AM
Rightmove sees growth despite slowing housing market
LONDON (Reuters) - Property website operator Rightmove (LSE: RMV.L - news) posted a 60 percent rise in six-month profit and said it was confident about its prospects as
property agents boost sales promotions to combat Britain's slowing housing market
.

Looks like Great Crash 2 just kicked up another gear. The VIs now ADMIT its slowing and are looking at ways to unload the unsold and overpriced stock or there will be no commissions to pay their oversized bills.

A few suggestions to combat the dying market:

1. Reduce prices.

2. Reduce prices.

3. Reduce prices by a lot. :lol::lol::lol:

Share this post


Link to post
Share on other sites

Yesterday the town's main EA [like to think of themselves as a local version of Foxtons :-)] posted a fancy promo through our door with a recipe for baking cookies :huh::huh:

Share this post


Link to post
Share on other sites
http://uk.biz.yahoo.com/31082007/325/right...ing-market.html
Friday August 31, 09:26 AM
Rightmove sees growth despite slowing housing market
LONDON (Reuters) - Property website operator Rightmove (LSE: RMV.L - news) posted a 60 percent rise in six-month profit and said it was confident about its prospects as
property agents boost sales promotions to combat Britain's slowing housing market
.

Looks like Great Crash 2 just kicked up another gear. The VIs now ADMIT its slowing and are looking at ways to unload the unsold and overpriced stock or there will be no commissions to pay their oversized bills.

A few suggestions to combat the dying market:

1. Reduce prices.

2. Reduce prices.

3. Reduce prices by a lot. :lol::lol::lol:

RB, I'm a little naive about how price reductions actually work 'on the ground'. As far as I understand, it’s down to how the relationship works between seller, buyers and EAs.

Who has the most power to influence prices here? Does it start with buyers putting in low offers and then not raising them?

Hope someone can enlighten me because it is this aspect that is key to a crash happening?

Share this post


Link to post
Share on other sites
RB, I'm a little naive about how price reductions actually work 'on the ground'. As far as I understand, it’s down to how the relationship works between seller, buyers and EAs.

Who has the most power to influence prices here? Does it start with buyers putting in low offers and then not raising them?

Hope someone can enlighten me because it is this aspect that is key to a crash happening?

IMO a market falls because sellers cannot get the price they want. This is because the buyers are not willing to pay the price based on market conditions:

1. Buyers can't borrow enough to meet seller expectations due to unavailibility of affordable credit.

2. Sellers are forced to lower prices because they are overgeared or facing some other economic disaster such as job loss. In a recession jobs losses add a great deal of momentum to a downturn in house prices.

3. Perception changes to the point that the consensus no longer believes house prices will rise--we are at that point now as VIs begin to admit its over. Buyers then decide to "wait it out" knowing that prices are no longer rising they are more content to rent and wait for prices to crash. This in turn triggers more STRing and BTLers bailing thereby adding to the supply side of the equation.

4. Stock market collapses can speed the process along considerably as the feeling of being "wealthy" vanishes and the knock-on effect on key City of London jobs impacts the entire economy blackening overall mood.

5. The power to influence markets is therefore with the market overall. On a much more more superficial level, The Sun has the power to cause the herd to stampede as it is the conscience of the people in the UK.

IMO the market hit a significant turning point by the end of Q2 2007 although all the "news" is coming out this Q. I can see the 4th Q as being very dire indeed.

Edited by Realistbear

Share this post


Link to post
Share on other sites
IMO a market falls because sellers cannot get the price they want. This is because the buyers are not willing to pay the price based on market conditions:

1. Buyers can't borrow enough to meet seller expectations due to unavailibility of affordable credit.

2. Sellers are forced to lower prices because they are overgeared or facing some other economic disaster such as job loss. In a recession jobs losses add a great deal of momentum to a downturn in house prices.

3. Perception changes to the point that the consensus no longer believes house prices will rise--we are at that point now as VIs begin to admit its over. Buyers then decide to "wait it out" knowing that prices are no longer rising they are more content to rent and wait for prices to crash. This in turn triggers more STRing and BTLers bailing thereby adding to the supply side of the equation.

4. Stock market collapses can speed the process along considerably as the feeling of being "wealthy" vanishes and the knock-on effect on key City of London jobs impacts the entire economy blackening overall mood.

5. The power to influence markets is therefore with the market overall. On a much more more superficial level, The Sun has the power to cause the herd to stampede as it is the conscience of the people in the UK.

All of these are true, but some are much more significant than others.

1. Critical, the "affordability" argument, and in my view one of the two key triggers that will force a drop in UK house prices over the next two years.

2. Critical in the 1989-95 crash but less important today, we'd need another half million unemployed to make this a significant factor.

3. Critical, this is the second trigger, it will drive new BTL landlords to flee the market and make the UK BTL industry a net seller of property, as against the net buyer that it's been for the last five years.

4. Unimportant in the UK, not enough people are direct stock market investors and it's a myth that city bonuses are dependent on rising share prices. If a stock market crash caused the MPC to reduce or hold interest rates then it would actually be counter productive.

5. Eh? Isn't this just point three re-stated?

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
On a much more more superficial level, The Sun has the power to cause the herd to stampede as it is the conscience of the people in the UK.

No wonder we've turned into such an amoral buch of fly by night superficial spivs. Having The Sun for a conscience must be a bit like having an opportunistic sociopath as a conscience.

(About as much use as a chocolate teapot!)

Share this post


Link to post
Share on other sites
Yesterday the town's main EA [like to think of themselves as a local version of Foxtons :-)] posted a fancy promo through our door with a recipe for baking cookies :huh::huh:

A shame it wasn't the recipe for Humple pie, the b**tards will be choking on it by Christmas.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 351 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.