'upturn Signs' In Housing Market

[wealthy]

http://news.bbc.co.uk/1/hi/uk/8157072.stm

The housing market is showing the first signs of an upturn since 2006, the Home Builders Federation (HBF) has said.

The body's survey of Britain's major home builders found 60% of those asked had seen an increase in sales compared to the same time last year.

Apparently this little piece of info is important enough to write the headline "'Upturn signs' in housing market " and plaster it all over the top of the bbc news page. Forget about the fact that jobs are being shed left right and centre, oh no - this stastic that 60% of house builders have seen an increase in sales compared to last year is significant.

And if that isn't enough to convince you this quote from the article surely will

Confidence is slowly coming back because people have got to move on with their lives

James Corcoran

Housebuyer

Oh yes! Confidence in the housing market is everything to do with people having to get on with their lives!

[Captain Cavey]

Ok, the article is clearly spin from desperate VI’s claiming that they feel slightly less pessimistic than before, but why (oh why) does the BBC feel the need to have this on the front page of their international section of the website?

BBC=Pravda

The housing market is showing the first signs of an upturn since 2006, the Home Builders Federation (HBF) has said.

The body's survey of Britain's major home builders found 60% of those asked had seen an increase in sales compared to the same time last year.

The HBF says the industry has been through the economic equivalent of a tsunami, with an estimated 250,000 construction jobs lost in a year.

It says the biggest hurdle to recovery is now the availability of mortgages.*

Chancellor Alistair Darling is to meet with the banks next week to remind them of their legally-binding obligation to lend more money to homebuyers.

Steve Turner, spokesman for the HBF, said the survey results were a welcome boost.

"It's been a very difficult year, but what we are starting to see is a consistent set of modest but positive results now in terms of visitor levels, in terms of reservations.

"I think for the first time in a number of months the industry is starting to feel more positive."

But BBC correspondent Keith Doyle said experts were warning that the industry was still fragile because although new home sales had increased, they were at an extremely low level last year.

James Corcoran, who is a few weeks away from completing on a new home, said he felt it was the right time to buy.

"Confidence is slowly coming back because people have got to move on with their lives - like myself.

"I've got a young family and need to move so I'm comfortable that the decision I've made is the right one for me and my family."

*....er, so nothing to do with still being overpriced then?

[Sybil13]

Already Here Link

[Imminent_plunge]

On telly now, spouting complete ********.

'There are some signs that lending is starting to turn around'.

'People can borrow at a higher loan to valuation than they could. I think there's more to come'.

This is apparently headline news from BBC

[ccc]

The person in charge of thos story must have a few 'investment' properties. It is quite lame and pathetic.

[Captain Cavey]

Already Here Link

By 3 minutes, damn his wealthy nimble fingers.

[expatowner]

why (oh why) does the BBC feel the need to have this on the front page of their international section of the website

Its a news story that is important to many people.

[murpaul]

GREAT!!!!!

Higher sales volumes/lower lending levels = Falling prices

[Captain Cavey]

Its a news story that is important to many people.

Agreed, including us, but the point is that any bearish news only debuts deep in the business section, if at all.

[Frank Hovis]

It's incredibly thin stuff.

The housing market is totally moribund but is slightly less moribund then it was a year ago when it looked like it had died entirely seems to be the message.

This isn't a recovereh

This is a long slide

Tucked away towards the end, Pravda say the same.

But BBC correspondent Keith Doyle said experts were warning that the industry was still fragile because although new home sales had increased, they were at an extremely low level last year.

[loginandtonic]

surprisingly i have seen boards appearing saying sold for the past few months

but for the last 2 or 3 weeks lots more for sale boards

[Imminent_plunge]

'Chancellor Alistair Darling is to meet with the banks next week to remind them of their legally-binding obligation to lend more money to homebuyers.'

Because you must LEND, LEND, LEND at any cost. What was wrong with the 8x income 125% mortgages in 2006/2007?

Oh, that's right. It bankrupted the banks and the taxpayer had to bail them out. Brilliant Darling.

[HPCbeliever]

The story is also on the Today programme.

[VacantPossession]

As usual, all these reports are entirely confused as to what they mean by "upturn" in the market. Do they mean that houses are more affordable and accessible? No they do not. There is always a half hearted mention of "freeing" up borrowing - but this is not so houses become more available, and cheaper. This freeing up is of course meant to be a signal that the recovery, as always, implies property can resume its previous habit of inflating beyond affordability, so that those already stupid enough to have bought at a ridiculous price, can be comforted that they made the right decision after all.

In no other area of commerce is a "recovering" market solely gauged upon price. A healthy market is one where there is plentiful supply and plentiful demand, but where there is sufficient competition and affordability to keep a cap on spiralling prices. A good market for any commodity is one where there is sustained activity and both buyer and seller are content.

But housing somehow changes the fundamental rules as far as the media are concerned. It gets so tiresome and tedious that what the BBC and nearly every other news organisation means by recovery, is in fact anything BUT recovery. What it means is that they think we can continue regarding property as a speculative vehicle again.

Edited July 18, 2009 by VacantPossession

[@contradevian]

So if you don't buy you are not getting on with your life? I've not bought and got on with my life, especially now I'm free from bags of plaster, weekends at B&Q and constant decorating.

[spivT]

http://news.bbc.co.uk/1/hi/uk/8157072.stm

Oh yes! Confidence in the housing market is everything to do with people having to get on with their lives!

translated as: buy now while they're not at 2007 peaks, otherwise miss out as prices shoot back up.

It's not so much people getting on with their lives, as a lot of ftb's blinking first. The Poor saps have only ever known perpetually rising prices.

[spivT]

As usual, all these reports are entirely confused as to what they mean by "upturn" in the market. Do they mean that houses are more affordable and accessible? No they do not. There is always a half hearted mention of "freeing" up borrowing - but this is not so houses become more available, and cheaper. This freeing up is of course meant to be a signal that the recovery, as always, implies property can resume its previous habit of inflating beyond affordability, so that those already stupid enough to have bought at a ridiculous price, can be comforted that they made the right decision after all.

In no other area of commerce is a "recovering" market solely gauged upon price. A healthy market is one where there is plentiful supply and plentiful demand, but where there is sufficient competition and affordability to keep a cap on spiralling prices. A good market for any commodity is one where there is sustained activity and both buyer and seller are content.

But housing somehow changes the fundamental rules as far as the media are concerned. It gets so tiresome and tedious that what the BBC and nearly every other news organisation means by recovery, is in fact anything BUT recovery. What it means is that they think we can continue regarding property as a speculative vehicle again.

yep, darling it's on the case, reminding the banks of the need to lend to people to buy overinflated houses. The cornerstone of our economy. Never mind the fact the govt. are supposed to have no interest in running the banks they have stakeholdings in, wishing to keep things at arms length apparently, let alone legally trying to enforce banks to ramp up lending to ensure a reflating of house price values, with already overly indebted consumer taking on the increased debt burden required. Wonderful.

IT's funny how we need to be saved from ourselves when it comes to all sorts of things and activities in our daily lives. ........a continous stream of nannying via warnings, tv, and a msm which is on message with the baloney, some of this nannying backed up with legislative force...don't do this don't do that... cotton wool etc. But when it comes to paying stupid money for houses we need to enable the leverage for that, because that in actual fact is good for us or so we're told.

Just as the vast majority are actually more covert about their desire for speed cameras and road humps on every street, we as a nation are much more overt about wanting that other thing that protects us.......high house prices. So no, you can't smoke 20 cigarettes a day, but you must be allowed to borrow as much as you wish. Within a reasonable assumption of affordability. The affordability calculator has one simple question...."how much does the seller want for the place minus your measly deposit you sheeple ftb'ing m********* ?"

[Imminent_plunge]

So if you don't buy you are not getting on with your life? I've not bought and got on with my life, especially now I'm free from bags of plaster, weekends at B&Q and constant decorating.

Apparently not. I'm working my t**s off at the moment and enjoying it but with an aim to travelling around the world next year, so saving every penny. My daughter's off to Uni, a long-term relationship has just ended. I have a big deposit but honestly, would I choose to sink it into a house in this situation? And spending weekends at B&Q is frankly moribund.

[redmen9]

translated as: buy now while they're not at 2007 peaks, otherwise miss out as prices shoot back up.

It's not so much people getting on with their lives, as a lot of ftb's blinking first. The Poor saps have only ever known perpetually rising prices.

Yep, it's people like Mr Corchoran, the featured FTB who needed to 'get on with his life' that you have to feel for. Constantly fed this propaganda by the media that we are now in recovery and that house prices are set to soar, he's entered a market very near the peak. He has a family to support hence the urgency, surely that should mean all the more reason to stay out of a falling market!

As far as 'getting on with your life' is concerned, I sold to rent in 2007 and my second child was born last year. There is a lot of pressure on families to have the stability of a family home etc but the reality is that your family works as a unit regardless of where you live.

The sheer irresponsibility of the BBC is astounding, this poor man could well end up in negative equity, unemployed, having his house repossessed but hey, that won't be the BBCs fault now will it.

[Sybil13]

On telly now, spouting complete ********.

'There are some signs that lending is starting to turn around'.

'People can borrow at a higher loan to valuation than they could. I think there's more to come'.

This is apparently headline news from BBC

Mortgages Will Get More Expensive

17 July 2009

Lenders have quashed expectations of a return to the days of high loan to value (LTV) mortgages by warning that funding restraints are ongoing and unlikely to ease in the near future.

Dispelling any hopes that there is a glut of cheap credit set to come on stream which could boost the housing market, the Council of Mortgage Lenders (CML) said its members' ability to extend more credit was 'constrained for the foreseeable future.'

A spokesman for the CML - whose members cover 98% of all residential mortgage lending in the UK - said: 'The underlying problem is that we don't have access to the range and type of funding we used to have.

'Government intervention (namely through lending agreements with semi-nationalised banks) has improved the situation but the constraints on lenders are real.'

The CML said there was 'no realistic prospect in the foreseeable future' of the situation changing rapidly, although they said lenders were trying to make up for the loss of capacity.

Isn't a large part of the problem believing that the kind of lending we have had for a few short years culminating in 50% of mortgage lending at peak coming from RMBS, was normal.

RMBS fuelled the bubble but normal surely is what we had prior to 2001 when RMBS kicked in.

UK Lenders Ought To Cut Lending by £500billion

.....Analysts are determined that the Government’s plans on the increased banks’ lending towards the population are in controversy with its requirement to cut banks’ lending by £500 billion.

However, the Bank of England is confident that the measure is a must. In 2008, the difference between banks’ lending and deposits was constantly growing and reached as much as £800 billion with almost 50% of the amount being backed by residential property securities.....

Banks Already Lending to Max Capacity

.....In 2007, banks made 800,000 mortgage approvals, but only 400,000 were made from their own resources. Banks today are already offering mortgages at an annualised rate of about 375,000 approvals – nearly as much as at the peak of the market.

So, how much more can banks realistically do? Perhaps they can lend another 20%, to reach a total of 450,000 mortgages. Add in the struggling building societies at 100,000 loans (a third of their peak) and 20,000 from specialist lenders (down 75%) and the total may be just 570,000 a year.

What does this mean for house prices? History suggests the balance point lies at about 900,000 approvals; below this, prices fall and above it prices rise. So, there may not be enough money in the system to keep house prices rising.

[Bruce Banner]

The ramping continues and will continue right to the end.

Both BBC television newsreaders having a go at a representative from the BBA. They are encouraging viewer involvement by phone, text, or email.

[corevalue]

BBC = worse than Pravda. Here they apologise for being caught out showing faked pictures of the Iranian election . Note someone had to photoshop the picture, it wasn't a simple captioning error.

http://www.bbc.co.uk/blogs/theeditors/2009...y_happened.html

[decaston]

at least house builders are doing in the main what private sellers are not doing which is significantly reducing prices from 2007 level.

My wife sells new houses, was made redundant and now has sporadic work. but the peiple buying new houses are the same ones bbuying older properties,. equity rich - but sooner or later people will have to sell properties and as soon as the amount of property increases either because osf seller increase and/or less buyers the property prices will go down. supply and demand

[loginandtonic]

last desperate throw of dice before the election which might even be this autumn who knows.

i saw that nonsense on the bbc, not once did they say ''hold on, why should anyone pay that for a house or flat, surely the answer

is more realistic property prices and then the banks can afford to lend more and people can sensibly borrow",

instead its ''lets feed the VI greed, empty the pockets of the poor and average to make the rich even more rich".

bbc you disgust me

[interestrateripoff]

'Chancellor Alistair Darling is to meet with the banks next week to remind them of their legally-binding obligation to lend more money to homebuyers.'

Because you must LEND, LEND, LEND at any cost. What was wrong with the 8x income 125% mortgages in 2006/2007?

Oh, that's right. It bankrupted the banks and the taxpayer had to bail them out. Brilliant Darling.

So banks have a legal obligation to lend do they? I thought lending money was based on profitability of the loan rather than a legal obligation.

Darling is an idiot.