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| Housing market slowing down, says Halifax http://x404.co.uk/forum/viewtopic.php?f=19&t=8667 |
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| Author: | pcernie [ Fri Jun 04, 2010 11:28 am ] | |||||||||
| Post subject: | Housing market slowing down, says Halifax | |||||||||
http://news.bbc.co.uk/1/hi/business/10235370.stm Not to mention the surveyors and everyone else with a vested interest - is it any wonder that, at the most basic level (ignoring the BS), people are 'waiting to see what happens' 
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| Author: | Amnesia10 [ Sat Jun 05, 2010 1:24 am ] |
| Post subject: | Re: Housing market slowing down, says Halifax |
The housing market is inherently unstable at the moment. Banks and building societies are holding back funds, and while people may rush to sell before any capital gains comes into effect they will also have to buy as well. Those that have a vested interest in talking up the market are trying to do just that. You would have to be a brave person to buy right now because the market could plummet if things deteriorate in Greece or Euro land, and they will. I expect Ireland to fall a lot more and Greece to probably default, though they may drag it out for months. That would panic the banks who would suddenly be liable to pay out huge sums on credit default swaps if that were to happen. Some German banks would become insolvent overnight or very close to insolvent, as they are big holders of Greek sovereign debt. All of these things will cause banks to be much more cautious in lending, as it will be very hard for the UK to pull itself out of recession if its major trading partners are slumping. Then you will need an even bigger deposit to buy to avoid the bank having to take a hit, but if that happens you could find years of equity wiped out in a property slump. Though watch out to see if there is a panic of buy to let investors. If they are getting wiped out that could either lead to a lot of repossessions or fire sales driving down prices. The reason that they have held up so well recently is that the government has thrown billions of liquidity at the banks to hold up the property market. Once the public realise the game is up then the market will collapse. |
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