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Realistbear

Bovis Boss: It Is "an Awful Lot Worse" Than Anything We Have Had Before

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http://uk.news.yahoo.com/rtrs/20080709/tuk...rs-fa6b408.html

More house building jobs go in gloom
By Dan Lalor and Mark Potter Reuters - Wednesday, July 9 11:19 amLONDON (Reuters) - Builders Bovis Homes and Redrow are cutting 40 percent of their workforces, about 750 jobs in total, to cope with the deepening depression in the housing market.
The downturn has gathered pace in the past few weeks and now feels
"an awful lot worse"
than the last major correction in the early 1990s, David Ritchie, chief executive of Bovis Homes Group, said on Wednesday.

Builders were the first to enter the world of reality when the great crash began in California. They hold the unsold stock with interest running at the bank and they need to move 'em of the lot--FAST. Problem is that no one is buying as it is pointless buying today at 300k when they will be marked down to 200k in the future. Maybe even 100k.....................

Funny how the builder stock all rose today? Fools rally if ever there was one.

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obvious though, wasnt it, where there is no money, there can be no sales.

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Guest KingCharles1st

I have a horrible feeling, that somehow after the last 3 to 6 months, what has actually happened is WRONG- and it wasn't intended to happen the way it has.

I agree, Armageddon is around the corner- and I think the new scare of house builders undercutting anything and everything that moves is going to shred the buying and selling of houses as we know it.

This is WRONG- the pressure forcing the developers into such measures will eventually turn inward on itself, and we will be left with cheap- but unaffordable homes that you wouldn't house a dog in,

and no easily jumpstarted housebuilding plan without MASSIVE government or high risk investment.

I don't know what they should have done, but I think they are treating the symptoms and not the patient at the moment.

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The silly thing is: its not as if there is NO lending going on.

With my deposit, I would comfortably get a decent mortgage as a FTB.

Just makes you wonder how many 100% / IO / BTL mortgages were sold before hand!

Some people are really going to be in trouble!

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Have any of these silly builders actually cut the price of unsold stock yet, instead of fraudulent deferred debt/ shared ownership schemes which are of no interest to anyone? The damn wall is about to break folks.

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What preceded the last 3-6 months is what was WRONG.

Developers and investors are going to get smoked, period!

I have a horrible feeling, that somehow after the last 3 to 6 months, what has actually happened is WRONG- and it wasn't intended to happen the way it has.

I agree, Armageddon is around the corner- and I think the new scare of house builders undercutting anything and everything that moves is going to shred the buying and selling of houses as we know it.

This is WRONG- the pressure forcing the developers into such measures will eventually turn inward on itself, and we will be left with cheap- but unaffordable homes that you wouldn't house a dog in,

and no easily jumpstarted housebuilding plan without MASSIVE government or high risk investment.

I don't know what they should have done, but I think they are treating the symptoms and not the patient at the moment.

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I have a horrible feeling, that somehow after the last 3 to 6 months, what has actually happened is WRONG- and it wasn't intended to happen the way it has.

I don't know what they should have done, but I think they are treating the symptoms and not the patient at the moment.

You are not alone. I don't know, and more worryingly perhaps, those "in authority" haven't either. :(

Edited by 1929crash

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The silly thing is: its not as if there is NO lending going on.

With my deposit, I would comfortably get a decent mortgage as a FTB.

Just makes you wonder how many 100% / IO / BTL mortgages were sold before hand!

Some people are really going to be in trouble!

I think a lot of builders feel hard done by because a lot of lenders wont touch newbuilds without a huge deposit and an honest valuation.

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http://finance.yahoo.com/tech-ticker/artic...KBH,LEN,TOL,XLB

Worst ever seems to be the words of the grwoing consensus. Worldwide.

3 months from now and we could be seeing house price armageddon.

I seriously hope so. My spirits were raised today as I looked a detached property in one of my target areas which had been on the market for £300K six months ago... it had been reduced to £265k - then was marked as sold... then came back on the market at £235k. If it drops by the same again, it would be a screaming "buy" as far as I'm concerned. What I find interesting is that this was previously the most and not the least sensibly priced property in the area.

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I have a horrible feeling, that somehow after the last 3 to 6 months, what has actually happened is WRONG- and it wasn't intended to happen the way it has.

I agree, Armageddon is around the corner- and I think the new scare of house builders undercutting anything and everything that moves is going to shred the buying and selling of houses as we know it.

This is WRONG- the pressure forcing the developers into such measures will eventually turn inward on itself, and we will be left with cheap- but unaffordable homes that you wouldn't house a dog in,

and no easily jumpstarted housebuilding plan without MASSIVE government or high risk investment.

I don't know what they should have done, but I think they are treating the symptoms and not the patient at the moment.

The biggest confidence trick in human history has collapsed.

This is why it is wrong. Other booms and busts where just made up by the banksters to claim more and more assets - this is different, this is the logical end of the game they started in 1929.

Edited by Injin

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I seriously hope so. My spirits were raised today as I looked a detached property in one of my target areas which had been on the market for £300K six months ago... it had been reduced to £265k - then was marked as sold... then came back on the market at £235k. If it drops by the same again, it would be a screaming "buy" as far as I'm concerned. What I find interesting is that this was previously the most and not the least sensibly priced property in the area.

Relative to what is that good value?

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I think a lot of builders feel hard done by because a lot of lenders wont touch newbuilds without a huge deposit and an honest valuation.

I suppose this is where surveyors / valuations etc really come into their own (Freeholder - views?).

On the way up, valuations don't mean a huge amount I guess (if people are prepared to pay the price, and lenders aren't too worried if general prices are going up and there is instant equity)....on the way down, it's bloody tough to put a realistic value on a property when nothing else is selling to compare values to.

How on earth do they do it? Look at average price reductions nationally and locally and apply this to the previously sold price?

Tough job to do at the moment I should imagine, (not least telling some poor bugger that his house is worse alot less than the outstanding mortgage on the property).

All the above is just conjecture...i'm certainly no expert. Any opinions from those at the coal face?

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I suppose this is where surveyors / valuations etc really come into their own (Freeholder - views?).

On the way up, valuations don't mean a huge amount I guess (if people are prepared to pay the price, and lenders aren't too worried if general prices are going up and there is instant equity)....on the way down, it's bloody tough to put a realistic value on a property when nothing else is selling to compare values to.

How on earth do they do it? Look at average price reductions nationally and locally and apply this to the previously sold price?

Tough job to do at the moment I should imagine, (not least telling some poor bugger that his house is worse alot less than the outstanding mortgage on the property).

All the above is just conjecture...i'm certainly no expert. Any opinions from those at the coal face?

''All the above is just conjecture...i'm certainly no expert. Any opinions from those at the coal face?''

No one at the coalface these days, they closed the mines down 25 years ago on account of they were worked by unionised labour.

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  • 395 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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