Sunday, January 27, 2008

The wonder isn’t that the bubble is bursting, but that it has lasted so long

Pity the poor estate agents, caricatures of boosterish greed

And now all us seem to be heading towards the edge - of a cliff, according to some forecasts, or of a downwards slope, according to others. The certainty is that the long boom is over. The consequences may be mixed - people feel less rich, houses become more affordable - but for estate agents a collapse in house prices is unalloyed bad news.

Posted by jack c @ 11:08 AM (1370 views)
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4 thoughts on “The wonder isn’t that the bubble is bursting, but that it has lasted so long

  • who stole my pension? says:

    I think the EA will now turn against the house seller and will start telling the buyer that they can offer significantly less. The problem for the EA is the number of transactions not the actual price. Therefore for the EA to survive they must get the market moving again – quickly. Thus they will talk the price down significantly. Maybe the EA will become HPC best friend!!! Who would have thought of that! Three cheers for the EA!

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  • “And now? I divided £238 into the price Williams had just mentioned and came out with a multiple of more than 5,000. The equivalent of an average annual wage in 1944 would have bought the house outright; now it would require the sum total of about 50 average annual wages. The wonder isn’t that the bubble is bursting, but that it has lasted so long.”

    This is the mathematics that indicates that we are a lot poorer nowadays than we used to be, despite our nefarious lying governments telling us otherwise.

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  • Nearly Exchanged says:

    I agree with “who stole my pension?” in that the EAs will dust themselves down and start pricing property at a more realistic value now. Surely instead of just having the market share of the “for sale” boards now in an area they need to show that they can sell property and have the market share of the “sold boards”. That said their percentages will go up to ensure fat salaries for themselves.

    Ive looked at a couple of houses although I think we are going to rent for 6-12 months. Am tempted to offer 15% below asking price just to see what they say. Naturally only on a couple of houses I do actually like. Im not hopeful but will report back.

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  • it_is_going_with_a_bang says:

    I think you will find 2 distinct kinds of EA acting very differently, those with a portfolio of property they don’t want to devalue and those who just want to keep their jobs and earn a wage.

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