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Ea Tells It Liek It Is Shock

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This was in yesterday's letters to the Times so sorry if already posted . Cant get the link so I'll type it out:

Sir,

Your article 'Home Ownership out of reach for average earners' shows an ignorance of how prices are established.

House prices are more a result of the availability of loans, than of supply and demand. If lenders continually relax salary requirments then pople will borrow more and importantly, negotiate less, thus allowing prices to increase. Growing hype and hysteria does the rest and drives prices to unrealistic levels.

Now that some sanity has returned to lending it is not so much a question that people can't afford to buy, and more that sellers willl have to drop their prices to realistic levels.

There can be all the demand in the world and limited supply but if there's no money then there's no market.

Russell Hicks

Director, Barnard Marcus

He could almost be one of us ! Perhaps the EAs are begining to understand and change their tune ?

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Russell Hicks

Director, Barnard Marcus

Aren't Barnard Marcus auctioneers?

Edit: yes, seems so, might explain it?

Edited by Hara

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Fantastic stuff. This angle is almost wilfully ignored, the media seems to love saying that FTBs are "really struggling to get on the ladder". With this sort of deception going on, people have been blinded to the idea that lax/liar money being lent = higher prices. It's like a simple card trick being revealed - "doh! how could I not see that!"

Edited by BlueRat

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Let's face it, EAs aren't going to sell many houses if the prices are too high for people to get finance. Soon the penny will drop with the rest of 'em and they'll all be trying to get sellers to reduce prices.

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Let's face it, EAs aren't going to sell many houses if the prices are too high for people to get finance. Soon the penny will drop with the rest of 'em and they'll all be trying to get sellers to reduce prices.

;):lol::P Heh heh heh heh heh!! Sometimes people cannot see something when it is staring them right in the face. Also - they don't see a brick when it is travelling fast towards their face.

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EA behavior makes sense to me. EAs were keen for houses to hit ever more ridiculous prices so they could claim those nice commissions. BTLs buying for short periods must have been even better - they could probably make their commission on the same place more than once a year. Now the money and desire to pay these prices is no longer there, it's in their interests for prices to tumble as quickly as possible so volumes pick up, and the process starts all over. The current impasse can't be good for EAs, and ramping is no longer an option...

Edited by impatient_mug

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Let's face it, EAs aren't going to sell many houses if the prices are too high for people to get finance. Soon the penny will drop with the rest of 'em and they'll all be trying to get sellers to reduce prices.

Based on propertybee anecdotage, Foxtons seem to be the most aggressive droppers of prices in my area...

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Based on propertybee anecdotage, Foxtons seem to be the most aggressive droppers of prices in my area...

I'd suggest that is probably because, IMHO, they tend to over value properties by the largest margins.

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Aren't Barnard Marcus auctioneers?

Edit: yes, seems so, might explain it?

They're also High St EAs, at least around here. (SW London)

So we're dealing with some switched on low life who makes sure he gets wind first hand of the bargains (or injustices) going through his auctions, before putting them on the market through his estate agents. How many have you shafted Barnard? Get ready to make some cuts...

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Finally seeing a sea change of EA sentiment in Farnham. Some of them have clearly taken a bit of that Barnard Marcus medicine :lol:

Many are still ramping it to the rafters, :rolleyes: but no less than four have told Mrs Buzzardo, in the last three days, that we should stay where we are (renting) and not buy for 1-2 years.

Most gobsmacking comment of all came from G-Pees today - "we're expecting to see drops of 35-50% in the next 18 months; unless you find the absolutely perfect place, I'd stay out of it for now if I were you..."

Speechless. But not before time....

B

Edited to remove excessive use of the word "some"

Edited by buzzardo

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I have to say I think that this has everything to do with bargaining and nothing to do with honour. Lets face it, the ones who used to mash caviar in their little ones napkins based on big comissions from high price expectations from vendors are now being hampered in their efforts to put baked beans in their babies mouths by that self same tendency.

What used to be a bad thing (realism and economic understanding) is now a good thing, in fact absolutely essential if commissions are to start rolling back in.

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Went with a B Marcus agent to view a house yesterday; poor girl. It was her first week in the job, no more than 20, trying to shift a house that's overpriced and been on the market for 6 months. She's going to get a rough ride me thinks.

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  • 401 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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