Sunday, Dec 27, 2009

A tale of two halves

Times: The recovery of the housing market

This time last year, the headlines were full of doom for the housing market. Prices had already dropped sharply and all the indications were that they were poised to fall even further — with the gloomier analysts expecting double-digit declines.
Well, what a difference a year makes. The latest surveys by Halifax and the Nationwide show that house prices have, in fact, surged for the past five months in a row, reversing most of the losses for 2009.
What happened? Lucian puts it down to pent-up demand from cash-rich buyers, combined with low stock levels. “It’s become a supply-and- demand situation,” he says. Speedy action by the Bank of England also helped. Cutting interest rates had a huge impact.

Posted by little professor @ 12:16 AM (2331 views)
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15 Comments

1. markj69 str05 said...

Unfortunately the average house price these days does not tell the full story alone. The market is very uneven.

Since property became an investment mechanism for all, I liken it to fine art. Remember, there is a lot of money available for investment. So when very few fine properties come on the market, they will attract much interest, and return a good price. However, properties of lower standards will struggle. An event of some magnitude is required to ensure mass quantity of properties enter the market. Then a national correction will ocurr.

Sunday, December 27, 2009 01:16AM Report Comment
 

2. crunchy said...

The posters that like to watch paint dry and forget about the actions of the painters and decorators who chose the more interesting, telling

colours upon which they view. A missed opportunity in understanding paint and the application of it.

Sunday, December 27, 2009 02:18AM Report Comment
 

3. tyrellcorporation said...

Crunchy you're not Eric cantona are you?

Sunday, December 27, 2009 07:55AM Report Comment
 

4. Orwell said...

We own a typical two-bedroom 1930s detached bungalow in Bristol, which we have substantially extended. Properties in the area tend to sell for about £200,000.... We’ve had several ... approaches from ... agents. All say that there is a dearth of properties, especially bungalows, and that if they had them, they could sell them, but that has not been our experience...

Roy Fox, Bristol.

Yes Roy. And what is the average professional salary in Bristol? £25k? Might this be why you can't sell your property?

Sunday, December 27, 2009 09:35AM Report Comment
 

5. little professor said...

Tyrell - I think the point malct was making, with his clumsy attempt at an analogy, was that we should not be posting articles about house prices on this house price crash blog, but rather we should be posting links to conspiraloon sites that 'reveal' the hidden new world order that is controlling everything we do without us knowing.

This one's for you, troy/malct/crunchy, you might want to buy some snake-oil from this guy, he tells it like it is:
Modern medicine, surgery even water is unnecessary and a huge media lie!!!!!

Sunday, December 27, 2009 09:51AM Report Comment
 

6. will said...

If the property crash has been prevented then we must once again question the affordability of property in the UK. We must, therefore, still be in the greatest property bubble ever created and I would urge anyone foolish enough to consider buying at these prices to think again.

We must question why our Government and banks are desperate to prevent a correction. We should be extremely concerned if the answer is that 'the economy depends on it', because what else will prop up our economy?

A big round of applause for the banks not letting prices slowly deflate. I wonder how many first time buyers will fall into their trap of mortgage misery by taking on huge borrowing which for many will leave little spare cash for living.

If you look at countries like the US and Spain they have seen corrections of up to 50% in their property markets without a susbsequent recovery. So why not in the UK? Well not yet anyway.

The Western World's economies are in a real mess and when those that control it could at any time in the future bring the housing market down with an almighty crash, deliberately or otherwise. No one in their right mind should be buying into that.

Sunday, December 27, 2009 10:03AM Report Comment
 

7. taffee said...

alistair darling comment after cameron suggested qe should stop was...'we can't let that happen,the economy would collapse'...amazing but true.

Houseprices could fall for 20 years ala japan....houseprices in uk are highest in the world in one of the weakest economys

doesn't take a genius to work out what happens next

Sunday, December 27, 2009 10:14AM Report Comment
 

8. Mel;tsheep said...

I've been flat hunting (to rent) recently. An very nice lady from Winkworths in Shepherds Bush was telling me the sales market has gone crazy, like end of 2006 she said. Typically it seems cash rich buyers who sold up in 2007 are returning to the market and snapping up "bargains". She said supply was very tight and was expecting prices to rise next year! I counselled that this was probably unlikely.

Sunday, December 27, 2009 10:46AM Report Comment
 

9. crunchy said...

4. little professor

As with all things one has to use discretion and I do that extremely well, so well in fact that you have to make up other names for me to

discredit my impeccable judgement. It has served me very well indeed and it will continue to do so. The acid test.

Sunday, December 27, 2009 02:00PM Report Comment
 

10. icarus said...

LP @4 - but he's probably right on one point at least

http://www.healthresearchforum.org.uk/reports/sunlightrobbery.pdf

Sunday, December 27, 2009 06:56PM Report Comment
 

11. smugdog said...

I love it, (well cringe really) when first time buyers are told that the real problem is not the high cost of a property, but the lack
in availability of mortgages to fund the purchase - if only the banks could offer better and bigger multiples. The young seem
blinkered and mesmerised into thinking this is true, yet fail to take a step back and realise that they too will just be one more
brick in supporting this mass illusion.

(Perhaps Crunchy and s2r1 have found the answers after all)

It seems to be a pretty robust charade and the government seems hell bent on propping up any subsidence. Will it last?
who knows. For my offspring’s sake, I hope they are not suckered in or left holding the baby when it does fall into the abyss.

Me, although property as a business has provided a very good life for me, I feel for the next generation who perhaps think
that this is how things are, chained to large outgoings, and perhaps worse, a stark realisation eventually, that it was all
but a complex and clever hoax.

I'm sure we will debate more soon, until then, peace and goodwill in the New Year to you all.

Sunday, December 27, 2009 07:59PM Report Comment
 

12. crunchy said...

Ha ha, The subject of Genetically Modified Food that the elite would not touch with a barge pole. Will you be able to eat like a King in the

future folks. The Genetically Modified (zombie) Eaters await you. The sun is also important as are our dying bees. Go figure.

On the subject of health...The Health Care Reform= A bailout for insurance companies. Staying ahead of the game. Le Crunch xxxxx

Sunday, December 27, 2009 08:04PM Report Comment
 

13. smugdog said...

Crunchy, food for thought indeed.

Take care out there.

Sunday, December 27, 2009 08:22PM Report Comment
 

14. crunchy said...

Social Darwinism smuggy.

Old theories in a New World Disorder.

Pedigree Chum or Chappie.

Sunday, December 27, 2009 08:52PM Report Comment
 

15. crunchy said...

Even my Cavalier King Charles knows what keeps this bitches coat glossy.

Sunday, December 27, 2009 09:02PM Report Comment
 

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