Wednesday, January 23, 2008

Sinking? More like Plummeting!!

Connells reports sinking approvals

Whole Short Article: Connells Survey & Valuation's December data saw mortgage approvals plunge by 43 per cent when compared to the previous year. This is a 21 per cent slump on November's data and on top of a 0.6 per cent easing of December's house prices to bring the average home's value to £215,417.

Posted by renting2 @ 12:01 PM (873 views)
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6 thoughts on “Sinking? More like Plummeting!!

  • Ross Bowen, managing director of Connells S&V, says:“We urge the Bank of England to implement the next cut in rates in February to help start the process of restoring confidence to the markets.”

    Why bleat on for rate cut after rate cut? why not ask the BOE to reduce rates to 0% ? – but then again the VI’s would still want more – when the market implodes they will be looking for lenders move to charitable status and for government bailouts Northern Rock style. Champaign Charlie’s when prices rise and a bunch of wimps at the first hint that they might actually have to work for a living.

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  • crash bandicoot says:

    The housing market is finished. It was only supported at its current levels by suspect practices. Where now are the advocates of “buy with a friend” or “buy with a stranger”. Where now is the “We’re in a new paradigm, 5x salary is totaly sustainable for 25 years”. Where is “Houses only ever go up in price” (OK that’s on Assetz, but I’m talking about the real world here). You can only claim unforseen circumstances once, we’ve all seen reallity now so adjust expectations and move on. Why VI’s persist in thinking that a healthy market is one where prices are maintained at the expense of sales volumes is beyond me. Surely they are better selling 10 houses at £100k than 2 at £150k.

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  • Crash B – good final point – EA’s generally get paid on completion – so no movement/sale of the properties on their books means no fee/commision income, however the business overheads still need to be paid each month – consequently unless EA’s begin to get vendors to accept more realistic (lower) prices thereby potentially turning the stock on their books they will quickly go bust. I’m assuming here that EA’s dont have significant cash at bank or generous overdrafraft/loan facilities.

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  • One particular group of people who have hardly been mentioned when it comes to property is the VALUERS.
    We have heard about estate agents, banks, brokers, etc all playing thier part in this housing bubble but notthing of the guys who valued these properties.
    For me they are the biggest culprits because they kept valuing houses ever higher. They should be regulated and held to account for their unprofesionalism.

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  • it_is_going_with_a_bang says:

    From what i’ve seen alot of Estate Agents are now Multiple Property owners themselves. Whilst they want continued sales they can’t stand the thought of their portfolio reducing in value.
    Ross Bowen also needs to decide what line he is going to take, on one hand he is urging the BOE to cut rates – implying that there is a problem, then on the other hand he says property prices will level and go up again. Surely if that was the case why bleat on about needing a rate cut.

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  • Rentinginthesouth says:

    EA’s will drive up the price all the time the market is good… when the market tilts and they experience a period of stagnation, they will say “property is lower now” so they can turnover their stock. They will contribute to fuelling the crash to protect their business. – A worst thing for an EA is to have a ‘For Sale’ sign up everywhere… what they want is a ‘Sold’ board to show Joe Public they’re popular

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