Friday, January 2, 2009

No floor to any of the housing market

Consumer lending and mortgage approvals: what the experts say

Matthew Sharratt, UK economist at Bank of America said: "There just doesn't seem to be any floor to any of the housing market data. That is highlighted again with mortgage approvals hitting a fresh record low. It's at an expectional weak level. There's no end in sight to the pain in the housing market. House price indicators will continue to tumble in coming months."

Posted by peter_2008 @ 07:27 PM (1723 views)
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17 thoughts on “No floor to any of the housing market

  • “There just doesn’t seem to be any floor to any of the housing market data.”

    Oh, there is a floor…..it’s just that it will take 2-3 years to get there.

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  • Exactly: The graph from the Halifax in 2 news posts before highlights that if you bought a house in the summer of 1989 it could have in all probability still have been only worth what you paid for it (less in real terms) 10 years later. Interestingly the low was hit in the summer of 1992, so if history repeats itself prices may bottom in the summer of 2010 but will take till 2017 to return to their previous highs in pounds sterling. However in real global monetary terms UK property may never be worth as much again.

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  • Why are you all trying to destroy my hard work?
    The housing market will see a return to 2007 levels by june why would any of you want house prices to fall when it is the backbone of our society?

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  • very funny gb.

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  • 3. gordon brown

    Crunchy: It’s not that house prices are the backbone of our society that is the problem Brownie. The problem is that it has become the backbone of our economy.

    That has got to change and you are not the man for the job. We need a sustainable economy built on sweat not debt!

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  • gordon brown says:

    I am the man for the job,
    Look at my track record it speaks for itself

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  • If half of the money that has been wasted on property speculation/wars, had been invested in modernising and expanding our industry over the last decade.

    Blair and yourself would have been worthy of your promises and Britian would be a little closer the Great.

    We could have had boom and thrust.

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  • Now go to bed Brown and cry on your pillow. It’s over.

    Good night.

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  • gordon brown says:

    Well crunchy I am shocked at your lack of patriotism, the country needs to unite behind me

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  • We, the patriots will unite, in getting you out.

    Grap your scotch and off to bed.

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  • The housing market will see a return to 2007 levels by june why would any of you want house prices to fall when it is the backbone of our society?

    It isn’t the backbone of our society at all, you have made it so. You have sat back and taken the credit for the good times, when they weren’t really all that good at all…..it was an orgy of debt. You failed to take appropriate action earlier and now the economy is going to suffer, too much money being loaned to too many people, far too cheaply for a long period of time. The UK economy will collapse and you along with it.

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  • Tenyearstogetmymoneyback says:

    enuii at 2

    Good guesses. Some real figures (although 1992 doesn’t stack up).

    Bought September 1989 £65500
    1995 Sixteen weeks on market. Best Offer £48000 (underzumped from £52000). Didn’t sell and lost solicitors fees.
    Sold January 1999 £70500. Time on market two days !

    The house in question was a 20 year old 3 three bedroom end of terrace. Postcode BH25 5UF if anyone wants a look.
    The one at the opposite end of the terrace is currently on Globrix at £170000. I’m monitoring it.

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  • justwatching says:

    Folks, can anyone find info about approvals Vs applications. Some people in the Meedlia are blaming the banks for not lending. What if the sheeple have stopped borrowing? How do we find out if they’ve got it bass ackwards.

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  • Still total denial in Devon above £500K.

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  • Total denial here in Devon above £500K.

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  • 13. will

    Count the for sale and sold signs.
    Period.

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  • Will. There seems to be the same story here in North Devon, and I’m not sure I follow the logic. Some of the lower end property has had a drop in screen prices, but over 300K seems to be stuck in a time warp. Some properties are still on offer at 2007 levels. So what does that tell us? i). EA’s are thoroughly professional, and will risk going out of business before they advise their clients to take a penny less; ii). EA’s have bought heavily into the property market, and will fight tooth and nail to keep up the value of their own investments; iii). EA’s are switch selling, and advising their clients to “test the market” at inflated prices for a couple of months, before advertising same properties to rent; iv). EA’s are trying to be clever, and advertising properties at inflated prices so that a generous discount still = MV; v). Homeowners round these parts are very rich, and are happy to hold out for a return of the good times; vi). Homeowners round these parts are not very rich, and are desperate for every penny to fund retirement/move abroad/re-investment.
    I’ve given up guessing, unless anyone else can shed any light.

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