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Sheer Heart Attack

The Times Is Now Officially Bear - "party" Definitely Over

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Housing market is on the brink

Grainne Gilmore and Lorna Blackwood

The Times Online and Page 2 Main Section, Print Edition

March 1, 2008

The average home has lost £6,000 in value over the past six months in the latest sign that the housing market is on the brink of a major decline.

FTB gloom...new buyers being approved for a mortgage has fallen by nearly a half since this time last year

Now mortgages dragging down prices...fears that curbs on new home loans could drag down property prices even further.

Approvals slumped...mortgages approved for new buyers had dropped by 40 per cent in January compared with January 2007

Record low mortages...j)ust 74,000 loans were approved for buyers, the second-lowest figure in more than 12 years.

VI's crying into their beer...(e)xperts sounded alarm that the tighter lending practices could exacerbate house-price falls as first-time buyers failed to get funds. Ray Boulger, of John Charcol, the mortgage broker, said: “The speed at which lenders are tightening their criteria and raising prices is frightening. Once it becomes impossible for most people to get a mortgage without a 10 per cent deposit, the first-time buyer market will freeze up, which will have a dangerous impact on the whole housing market and the wider economy.”

Reluctant lenders being choosy...(m)any lenders are refusing to lend to buyers...(i)nstead, they are cherrypicking only the most risk-free borrowers.

Estate agents bleating...Peter Wetherell, of Wetherells, a London estate agent, said: “The value is there but the volume isn’t. There is not a lot out there and there are also not a lot of people looking. In 2007 you could sell a secondary property for primary price but you can’t get away with it this year. Agents need to learn to sell again.”

Consumer confidence meltdown...(t)here is evidence that homeowners’ worries about the housing market are already taking their toll...many more people reporting serious concern about the economic conditions in the coming year, a survey by Gfk/NOP found.

Reminder of what's to come...(s)ome economists said that while house prices could decrease, the current economic conditions did not suggest falls of a similar level to those in the early 1990s. During that period, house prices tumbled by 30 per cent after interest rates reached 15 per cent, leaving many homeowners in negative equity and causing hundreds of thousands to lose their homes.

That's pretty much as bearish as you can get.

When the Murdoch press turns, sentiment turns in the general populace.

RIP Debt-Inflated Propery-Porn-Fed House Price Bubble. Died 1 March 2008. Missed only by Gordon Brown, Kirsty Allsop and Stamp Duty Collection Team.

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The average home has lost £6,000 in value over the past six months in the latest sign that the housing market is on the brink of a major decline.
Oddly enough, almost exactly what I paid in rent on my STR flat last year.

Dead money indeed.

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Ray Boulger, of John Charcol, the mortgage broker, said: “The speed at which lenders are tightening their criteria and raising prices is frightening. Once it becomes impossible for most people to get a mortgage without a 10 per cent deposit, the first-time buyer market will freeze up, which will have a dangerous impact on the whole housing market and the wider economy.”

Two very emotive and fear spreading words.

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Reminder of what's to come...(s)ome economists said that while house prices could decrease, the current economic conditions did not suggest falls of a similar level to those in the early 1990s. During that period, house prices tumbled by 30 per cent after interest rates reached 15 per cent, leaving many homeowners in negative equity and causing hundreds of thousands to lose their homes.

:huh: Some economists are only capable of processing one variable at a time. No wonder it's called the dismal science.

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bump that thread.....today is a day the PRESS seems to have turned BEAR

Bah! But doom-mongering is what I do, now everyone's at it it's no fun anymore <sigh>. I might have to become a bull :)

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Looks like all the ducks are lining up nicely for the bears.

Indeed and the fish are enjoying their initial look round their new barrel.

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Bah! But doom-mongering is what I do, now everyone's at it it's no fun anymore <sigh>. I might have to become a bull :)

Oh, go on, please.

We need a few.

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Bah! But doom-mongering is what I do, now everyone's at it it's no fun anymore <sigh>. I might have to become a bull :)

That is the best time to become a bull. <_<

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Hmmph, I just posted an epic reply (Times comments section) and it seems like the moderators snuffed it or something. :angry: I'll post this one instead for giggles.

"My advise to owners is hold your nerve, be prepared to negotiate, but don't give your hard won money away needlessly. Yes the boom time is over, but SUPPLY and DEMAND are the fundamentals of trading. And we live in an overpopulated country with un controlled immigration. Be patient not panicky."

Good God. Are you for real? Sitting on your backside whilst a cheap credit fuelled bubble increased prices by 200% is hardly "hard won money", and your equity is the 25 year debt burden of first-time-buyers.

And supply and demand? You really have been conned by vested interests if you believe that.

Edited by domo

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Hmmph, I just posted an epic reply (Times comments section) and it seems like the moderators snuffed it or something. :angry: I'll post this one instead for giggles.

That's not your comment <_<

Edited by Turnbull2000

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  • 293 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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