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Realistbear

Taylor Wimpey Get Real

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http://uk.biz.yahoo.com/080306/214/huxum.html

Taylor Wimpey sees tough 2008
LONDON (ShareCast) - Taylor Wimpey (LSE: TW.L - news) said it faces "difficult" market conditions in
both
the UK and the US as the housebuilder reported a drop in full year profits.

Reported on R4 this fine morn. Said they had experienced a 30% rise in cancellation rates in the UK too! I wonder what on earth the other 70% must be thinking? :blink:

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This is actually more significant than the Halifax -0.3% figure. Builders are the leading indicator, the ultimate "distressed seller". When they can't sell they go out of business.

Expect a lot of mothballed developments and huge discounting to begin......

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This is actually more significant than the Halifax -0.3% figure. Builders are the leading indicator, the ultimate "distressed seller". When they can't sell they go out of business.

Expect a lot of mothballed developments and huge discounting to begin......

Wouldn't mothballed developments mean that the builders would have to pay off interest on debt used to buy land but with no sight of a return. Banks wouldn't look very favourably on their financing if they simply stopped building.

Isn't it more likely that builders have to continue building but ultimately do whatever they have to to sell. This starts with incentives but will eventually have to be real price cuts. The larger builders, which lets face it build most of the houses can't just stop building, they need turn over like estate agents do even if the profit margins are less they will still need to be selling.

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This is actually more significant than the Halifax -0.3% figure. Builders are the leading indicator, the ultimate "distressed seller". When they can't sell they go out of business.

Expect a lot of mothballed developments and huge discounting to begin......

Developement by Chase Homes in Four Oaks Sutton Coldfield.........site sales staff gone, nothing sold in over 12 months and now the bank are handling the "sales". The feature property, a "duplex penthouse" was a ridiculous £600,000 12 months ago.....now available for a ridiculous £400,000

Of course still not sold.

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  • 297 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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