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What's the housing market like at the moment?

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But you must admit, for you to use the extreme figure of £130,000 is not a great assumption to make. That would assume a drop of £70,000 on the price of a brief while ago, and a fall of £20,000 below the original £150,000 of 4 or 5 years ago. I've yet to hear of anyone taking that kind of hit yet...

 

:)

 

I could have made it borderline, but it makes the point more clearly if it's exaggerated.

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But who wants to stay at home? They have been saying since the 60's that house prices are unaffordable. When houses were £300 they were unaffordable. We just have to face it that house prices have risen and people find new ways of affording a home.

 

This is just you stating what you wish was the case again.

 

Most predictions now are for a fall over the next year, with mainstream figures of around 10% being bandied about.

That's not prices having risen and people finding new ways of affording them is it. It's prices falling, and banks and building societies falling over themselves to withdraw mortgage offers from the market.

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As a point of interest, when banks and building societies start offering mortgages again (as they surely will) what will happen in light of the pent-up demand?

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They haven't stopped offering them, they have just got more expensive and more selective.

I doubt that lending criteria will relax to the level they have been for a long time, if ever. There's still the possibility of extra legislation being introduced to stop banks being quite so irresponsible in the future, which would guarantee it didn't happen again.

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Just talked to my next door neighbour.She put her house on market 10 days ago an has just accepted a cash offer near to asking price.Sold with Blundells.So dont believe everything that you read in the papaers! It cant be that bad can it?

 

House is in Crookes and no, it is not a landlord that is buying it thank goodness.

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Just talked to my next door neighbour.She put her house on market 10 days ago an has just accepted a cash offer near to asking price.Sold with Blundells.So dont believe everything that you read in the papaers! It cant be that bad can it?

 

House is in Crookes and no, it is not a landlord that is buying it thank goodness.

 

What is one anecdote supposed to demonstrate?

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What is one anecdote supposed to demonstrate?

He said his view above. Why don't you answer your own question?

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They haven't stopped offering them, they have just got more expensive and more selective.

I doubt that lending criteria will relax to the level they have been for a long time, if ever. There's still the possibility of extra legislation being introduced to stop banks being quite so irresponsible in the future, which would guarantee it didn't happen again.

 

I'm pretty certain banks want to write this disaster off and get back to "normal". They need to get back to "normal" to produce the big profits again. I think you are right in that they will want bigger deposits, but I think we'll see the 90% mortgage and probably 95% back pretty soon, because it suits the banks.

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Tomataheed, you accurately sum up the most important point.

 

At the end of the day they are a business, they will adjust the model to suit but while they aren't lending, they ain't earning. We can expect it to change before long.

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...but while they aren't lending, they ain't earning. We can expect it to change before long.

 

Only recently, while they were lending to those customers, they weren't earning either. Why would they want to revert to those trading patterns?

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I didn't imply that they would return to previous 'trading patterns'.

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Only recently, while they were lending to those customers, they weren't earning either. Why would they want to revert to those trading patterns?

 

 

They will go back to something close....as close as they dare in fact. They do need to earn profits....but just as important is what they tell the stock market...so as long as people believe big profits are coming, then they are happy. A company can continue to make losses through "one time write downs" year after year, but if they still keep saying next year will be better the analysts stay happy. Daft I know...but it seems to be how it works.

 

Tha banks can afford to wait...its the estate agents that are suffering. Low volumes of sales will quickly hurt them, but I don't see an awful lot of sympathy !

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