Friday, May 4, 2007

Signs of a slowdown & more HPC in the press

Signs of a slowdown but london refuses to conform

"The doomsayers have for some time had their own online forum: housepricecrash.co.uk. But one sign of their growing confidence is their new anthem – the Spitting Image spoof of Our House, the Madness hit, with lines such as “our house: price has dropped by 50 grand”."

Posted by millard @ 09:55 AM (479 views)
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5 thoughts on “Signs of a slowdown & more HPC in the press

  • “The continuing scarcity of properties for sale and the sometimes overoptimistic expectations of sellers has left some estate agents wondering whether they should imitate some of their City clients’ ways of doing business. Ed Mead, of Douglas & Gordon, sums up the dilemma: “Should I be valuing houses just like a futures dealer who fixes a price for a commodity at some point in the future? For if a flat is worth £1.35 million today, there’s every possibility that, in a month, it could be more like £1.65 million.”

    Dear Anne… hope you are reading this blog…. what do you and this well-versed-in-finance estate agent mean, exactly???
    if there is a possibility that the value goes up to 1.65 next month you should wait next month, but if you do so you carry the risk the price does not rise, so if you discount appropriately you get back to today’s price of 1.35! Guess what… prices today fully reflect expectations of tomorrow.

    I have one word of advice for you and the estate agents… JUST LIMIT YOUR OPINION TO BUILDING CONSERVATORIES AND REFURBISHING KITCHENS AND LEAVE FINANCE TO PROFESSIONALS. MIND ABOUT THE COLOUR OF THE TILES BUT DO NOT VENTURE INTO FIELDS YOU KNOW TOO LITTLE ABOUT.

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  • London will fall in to line, because the mortgage market is feeding the leveraged capital markets which in turn is feeding the property market.

    And it will be just as spectacular as the rest of the country.

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  • japanese uncle says:

    The speculative monies that gluts in London now appear to be mostly from overeas and thus least loyal, meaning as soon as the key investment parameters shift, they will be gone fairly quickly, making the market by far the most fragile and volatile. Its like a kid playing match in a firework factory.

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  • Well in “my” part of London (NW), two bed flats can fetch up to £750,000. On one such flat we’re paying £350 a week in rent. Still a lot but nowhere near a mortgage (£4145 repayment / £3100 interest only a month assuming 10% deposit and 5.5% IR). Complete madness and yet most ads in EA windows have “under offer” or “sold” over them. Who is buying these and, more importantly, how? That’s what I’d like to know…

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  • converted lurker says:

    the ‘quality’ of that editorial/article is dire, Belgravia is OK therefore the rest of the market is booming! Jeez how much does she get paid for that utter utter rubbish

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