Monday, January 12, 2009

At last someone is being optimistic…..

about property.co.uk

A UK residential agent, Hamptons International, has outlined why 2009 might not be as bad as we all think. 1. The bank base rate is only 1.5 per cent ..... 2. Prices have already dropped by 20-25 per cent..... 3. Lower prices also enhance affordability.... 4. Vendors are far more acceptant of the need for price realism.... 5. Banks are under extreme pressure to increase liquidity..... 6. Pent-up demand..... 7. Stock of available property is down 25 per cent since May last year .....

Posted by fjcruiser @ 03:18 PM (1944 views)
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14 thoughts on “At last someone is being optimistic…..

  • Pent-up demand.

    The weird myth that somehow, given a certain market signal, potential buyers will somehow stampede the market and beat the estate agents’ doors down in a mad rush to buy the recently fallen property on their hands.

    The problem with this idea is:

    a) They won’t all get finance
    b) They won’t all have jobs
    c) Even if they do get finance, they won’t be able to afford the asking prices without significant further reductions
    d) Who says that buyers will accept prices as advertised and not simply drive prices further down as activity picks up?

    There’s still far too much misty-eyed optimism.

    Weren’t we going to get a soft landing for the housing market around a year ago? That’s how good these predictions are from the housing industry.

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  • Hamptons International’s key reasons to remain optimistic this year are:

    1. The partners all got massive bonuses last year.
    2. They use the word “key” and “pent-up” a lot.
    3. All Hampton’s staff have faces like Thunderbird puppets
    4. They all sound as though they went to public school, and can make a fortune with just a Geography A level.
    5. They keep saying house prices will rise so it must be true.

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  • Sorry to go off-topic, but did anyone notice the FP article on the web-page? He seems to get everywhere since abandoning HPC.

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  • I feel sure that “Hampton” is cockney rhyming slang for something!

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  • voiceofreason says:

    In my area, Southampton, I defo see this pent up demand.
    As prices in the numero uno rental area of 2 bed victorian terraces drop to 25% below peak, they are snapped up by cash buyers.

    My thinking is that Southampton was one of the first places where BTL started roaring back in the early noughties. As such, I think we had a load of early exiters too who have been sitting on their cash for the last 4 years, and are now returning with a vengeance.
    But I think they are jumping the gun. I had a chat with the local Nationwide sales guy earlier who reckons May/June will be when the big repo numbers hit the area.

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  • Wife is bombarding me with properties to look at.

    Can’t be the only one. She doesn’t believe me when I tell her she hasn’t seen anything yet and we’ll save a packet by waiting 18mo-2yr.

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  • it_is_going_with_a_bang says:

    More or less the same rubbish they have always dribbled.
    All they are doing is adding the occasional government supplied incentive line in the hope that people actually believe it.

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  • crash bandicoot says:

    Wow, they’ve missed all of the good ones. What about the small island thing or the divorcees and imigrants. And there are just not enough houses being built these days either.

    Moving on I was intrigued to see that Hamptons have noted a decline in the number of properties on the market. Is their business going down the pan?

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  • This article is written by vested interested party (Hamptons) and published on a vested interest website (aboutproperty.co.uk)
    They are attempting to draw the unsuspecting buyer back to he market to save their own necks. The massive property bubble we were in will take several years to deflate. Only fools will believe otherwise.

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  • voiceofreason

    The last person to talk to about the state of the market is an estate agent, they are all on their knees, and will tell you anything to achieve a sale.

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  • montesquieu @6

    How about introducing the misses to home.co.uk? Might fan the flames of homeownership desire, but may convince her to wait, having seen some of the price reduction graphs.

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  • new user 2007 says:

    montesquieu and voice of reason…

    Glad to say I am seeing the reverse from the people I know at work. Of the 20 odd FTBs in my office only one ha sany plans to buy before the end of the year. They are largely people who are married and their partners agree that they should wait.

    BTL reading the bottom of the market? The BTL I know fall into two categories. Those who sold in 2007 and those who thought they were clever and have called the bottom several times. Luckily for them, most could not get financing so they saved themselves from disaster.

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  • If I close the eyes, I see board meeting trying to to devise a strategy to survive and a worried Communications Manager, trying to steer some brand attention from a depressed market. Nothing strange at all. We are not going to believe them, but some desperate house wife, enchanted by a larger property in a nicer location will, so be careful, the threat is closer than you think…..

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  • Ramptons?

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