Monday, July 11, 2011

60% Fewer house sales.

The home moving crash: house purchases stuck at 60% below pre-slump levels

The property market remains stuck in the doldrums with the traditional spring bounce failing to lift homebuyers to even half the level seen before the slump hit, mortgage figures show.

Posted by will @ 04:13 PM (2015 views)
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7 thoughts on “60% Fewer house sales.

  • general congreve says:

    In other news: Housing Ponzi Scheme runs out of suckers.

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  • mark wadsworth says:

    What GC says.

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  • Quite right too. 99.99% of FTB who are looking to buy a properties will read a few articles like this along with the comments section. The more educated FTB’s become the fewer transactions will take place.

    Just a thought restricting the lending criteria may well lead to fewer but more educated buyers.

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  • general congreve says:

    Actually I take my first post back. If the banks were still giving out mortgages like it was 2007, plenty would still unthinkingly take them. I bet if they gave 100 year mortgages at 15x earnings they’d still be idiots who’s unquestioningly take the bait!

    So, not so much running out of suckers, but the banking industry realising it’s snookered itself.

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  • brickormortis says:

    Have any of you been to Oxford lately? House prices are not falling at all and in lots of areas, are above pre-crunch levels. It breaks my heart to say buy it is true! There are about 10 new people per day in Oxford needing houses and they just are not being created. I can’t even tell you where any new inner city Oxford housing projects are! Supply is small and demand is high. I am an original HPCer but this is something else!

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  • Yes, what GC says @ 4. I know plenty of people who would lap up 100% mortgages if they were available. Cos house prices only goes up, innit? And cos I can’t stand living with mum and dad any more. (Spoken in a Kevin-the-teenager voice).

    Brickormortis,
    Same happened in America – prices in Florida and Nevada crashed, but prices in New York City barely budged. I’d wager prices in Princeton, New Jersey, haven’t fallen that much either. Certainly in Boston (home to prestigious Harvard and MIT), house prices fell a maximum of 20% peak to trough. The nice parts of Boston fell less. Trouble is, desirable towns like Guildford, Brighton, Oxford, Cambridge, Winchester, etc. were all unaffordable for the “average” person even back in 2003. Conversely towns like Hull were very affordable back then (and are still comparatively affordable).
    It’s worth noting that a lot of local employment in those places is very recession-resilient. Universities, hospitals, blue-chip multinationals – the sorts of employers who aren’t quick to shed jobs in a recession.

    It’s not sustainable forever – people won’t keep bidding up house prices in Winchester if it prices fall significantly in Basingstoke. However prices in Winchester will always command a premium over Basingstoke. It’s fundamentally a nicer town.

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  • mark wadsworth says:

    @ GD, Drewster – I think that people have woken up to this. I was at a meeting which PricedOut had arranged with Caroline Flint, she started talking about local councils “helping” FTBs onto the ladder (treadmill) by giving them cheap loans to pay the deposit and there was total outcry – everybody yelled “We don’t want bigger mortgages, we want cheaper houses!”

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