Tuesday, June 24, 2008

Soon they’ll be agreeing with me!

House prices to fall more than 25pc as BBA warns on mortgages

The predictions get bigger and bigger! When they say 'more than 40%' they will be somewhere nearer the mark!

Posted by uncle tom @ 12:37 PM (2485 views)
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12 thoughts on “Soon they’ll be agreeing with me!

  • “UK housing market is in freefall”

    What a lovely phrase, and so nice to hear it from a bank economist.

    Reply
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  • it_is_going_with_a_bang says:

    “tight lending conditions.”

    That would be normal common sense lending conditions then?

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  • Distant_adz says:

    When are they going to get it? This is GOOD news for many people! Only the over-stretched have a problem – who cares about them?

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  • speculatorone says:

    ‘The BBA data graphically highlight that housing market activity is currently being throttled by stretched affordability and tight lending conditions.’ Throttled is a good description.

    The chap from rightmove said yesterday sellers should market their proeprty realistically, not put it on the market at an inflated price and then beat the price down over time. When do you think the EA’s will start using common sense and pricing correctly from the outset because around my areas any new property is still being valued and marketed at last summer’s peak prices?

    Doesn’t make sense to me.

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  • crash n burn says:

    Well, if they hope to keep their business’ going, then they will have no choice but to value houses at a lower value… Anyway, its quite fun watching them sweat it out.

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  • Sadly I think many vendors have that ‘head in the sand’ attitude that their property is worth what they think it’s worth.

    Near me a home went on the market about a year ago. The seller had a bit of a disagreement with the EA as he (the seller) wanted to break the ceiling for the street by about 15k, so the seller wins and the house goes on the market at 310k. A year later it’s still on the market and it’s still 310k. A lot of vendors seem to think they have the one property that will buck any trend.

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  • mark wadsworth says:

    Excellent find!

    It’s a self-fulfilling prophecy now.

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  • justwatching says:

    I care (distant @3)
    Two sets of good friends have ignored my advice and have recently bought. I tend not to talk to them about current price trends at the moment.

    What huge figures though.
    20% month on month (where is the late spring bounce)
    56%!!!!!!!!!!!!!! year on year.
    I wonder which figure will be reported on the Biased Broadcasting Corp this evening??

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  • Near where I live is a lovely old cottage in a very nice location, previously occupied by an old lady who was a bit of a character. The place was done up when she moved in 20 years ago, but little was done since. After she died last autumn, her family put the property on the market with indecent haste, the sale board going up before the funeral.

    Initially they asked £420k – a full price at the top of the market, which they might have got a reasonable offer on if the place had been in better order. There were no takers.

    After Christmas they dropped the price to £390k, but still no takers. At the end of March they took the property off the market, saying that they would ‘wait until the market picks up again’

    There’s no telling some people, but I think they’ll have a very long wait….

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  • speculatorone says:

    UT – speaking to one local EA he is advising sellers to rent out their property in the short term & still keep it for sale, because he says the market is only in a temp dip.
    They obviously don’t read any of the financial pages, or chose to ignore them..

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  • “House prices are set to lose a quarter or more of their value, experts have warned after a *SHOCKING* fall in property market activity.”

    to the FTB translates…

    House prices are set to lose a quarter or more of their value, experts have warned after a VERY WELCOME, HEARTENING, UNSURPRISING, LONG OVERDUE, MUCH NEEDED fall……….

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  • Fingerbob69 says:

    wiltshire/uncle tom

    Last september I valued a bungalow at £140k because it needed work. The vendors put it on with an other agent for £20k more …the price of one after being done up. It’s now on with 2/3 agents (including us) at £135k ….while the current property bubble was driven by many things, one of the principal drivers was the greed of vendors. People who are usually first to spin around and blame estate agents when it all goes pear-shaped.

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