It is different this time Posted March 3, 2008 Share Posted March 3, 2008 http://www.independent.co.uk/money/mortgag...008-790555.html By Sean O'GradyMonday, 3 March 2008 The number of home repossession is expected to rise by 50 per cent this year, according to the Royal Institution of Chartered Surveyors (Rics). Figures released by Rics today show that the number of properties offered at auction, usually an indication of distress, was close to historically high levels last year with 7,732 properties placed under the hammer. However, a smaller proportion were reaching their reserves: in the fourth quarter of 2007, only 57 per cent of properties were disposed of successfully, compared to 69 per cent in the same period a year ago. The overall number of residential properties offered at auctions rose by 15 per cent in 2007, while the number of repossessed properties rose by around 20 per cent, indicating that many have struggled to service their mortgages following last year's interest rate hikes and tougher refinancing conditions. There also seems to be an emerging "London effect". Success rates at auctions for London property fell to 63 per cent in the last few months of 2007, down from 80 per cent in the same period a year before. Rics economist Oliver Gilmartin said: "Fears over further house price falls have taken some stimulus out of achieved sales at the auction house, as specialist lending has all but evaporated... we expect a tougher year for many at the margins in 2008 ..." Last week, Nationwide Building Society reported a 0.5 per cent fall in house prices for February – a greater drop than the 0.3 per cent recorded in January. Year on year, Nationwide said that prices were now up just 2.7 per cent As demand has evaporated prices are falling even auctioneers can't get rid of residential properties. What a blow for Mr Subprime Minister's miracle economy! Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 3, 2008 Share Posted March 3, 2008 If RICS are admitting to a small rise of 50% we can expect around 100% by year end. After all, our mirror market in Southern California is currently experiencing 114% YoY rises in reposessions.* Things are deteriorating so fast I am not sure how anyone can keep pace without factoring in exponential multipliers. _________________________ * http://www.dqnews.com/RRFor0108.shtm California Foreclosure Activity Still Rising January 22, 2008 La Jolla, CA.--The number of mortgage default notices filed against California homeowners jumped last quarter to its highest level in more than fifteen years, a real estate information service reported. Lending institutions sent homeowners 81,550 default notices during the October-to-December period. That was up by 12.4 percent from 72,571 the previous quarter, and up 114.6 percent from 37,994 for fourth-quarter 2006, according to DataQuick Information Systems. Last quarter's number of defaults was the highest in DataQuick's statistics, which go back to 1992. http://www.housepricecrash.co.uk/forum/ind...ost&id=4113 Quote Link to comment Share on other sites More sharing options...
redgenieuk Posted March 3, 2008 Share Posted March 3, 2008 http://www.independent.co.uk/money/mortgag...008-790555.htmlAs demand has evaporated prices are falling even auctioneers can't get rid of residential properties. What a blow for Mr Subprime Minister's miracle economy! Auctioneers can get rid of them if the reserves were not too high! Lower the reserves / have no reserve and they will all sell. We are not detroit quite yet, but lowering of reserves is the way forward. As the light starts to dawn on the companies that they have a problem they will lower the reserves and rush for the exits. Charlie Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 3, 2008 Share Posted March 3, 2008 Auctioneers can get rid of them if the reserves were not too high!Lower the reserves / have no reserve and they will all sell. We are not detroit quite yet, but lowering of reserves is the way forward. As the light starts to dawn on the companies that they have a problem they will lower the reserves and rush for the exits. Charlie The venerable Dr. Bubb has suggested that we lag the US by 12-18 months. I agree with him. The US market started to dive by late 2006 which means things will get nasty here by late spring- early summer. By "nasty" I mean significant MoM drops of more than 3%. The 4 or 5 months in a row of falling prices so far will simnply gather speed as the credit markets continue to strangle the lifeblood out of Gordon's miracle economy. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.