Today's Independent, page 44, has these three headlines:
"Bank orders shock rise in rates"
"Barclays bad debt level hits £1 Billion"
"One million living in fear of going bust"
Need I say more?
August 04, 2006
Connecting the dots in my morning paper - interest rates, bad debt and being on the verge of bankruptcy in Britain
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17 comments:
It was a 1/4 point increase...the sky is not falling.
Life is great. Rising interest rates will crush the losers that live on credit, unemployment for the losers in real estate going thru the roof (especially the losers that left good jobs to make a quick buck - your job is now taken by someone smarter than you), people to stupid to have $ soon to part with everything. Can common sense make a comeback on this planet? Doubtful, but at least we do get to see these idiots get taken to the cleaners.
Over here in the suburbs of NYC I am seeing a lot of for-sale signs coming and going. I am not seeing many “under contract” or “sold” signs though. It appears as though houses are being pulled from the market only to reappear later, often with the same realtor and at the same asking price.
Have sellers always been this reluctant to lower asking prices or is this a new phenomenon appearing in the wake of the housing bubble?
Why aren’t the realtors out there educating the sellers about what it takes to make a sale in this environment? Are they? Are the sellers not listening?
every loan in the uk is an ARM. An extra 50 pounds a month for the mortgage plus say 50 pounds for credit cards plus 50 pounds for their car is a lot to a lot of people sport
can you imagine being a realtor with 5 mortgages, 2 leased lexus, $50,000 in credit card debt, and no customers?
"Why aren’t the realtors out there educating the sellers about what it takes to make a sale in this environment?"
=Because realtors and the real estate profession has lost all credibility
Yeah but Suzanne says we can do this...
Things are different here in the good old USA. We will have no such problems.
REALITY blogs like this... is a tormentor of the homebuilders !!!!!
There are some interesting stats here on UK Bankruptcy:
http://www.insolvency.gov.uk/otherinformation/statistics/200608/index.htm
Debtors in in the United States will also face increasing costs as interest rates increase.
The British are so much more smarter and educated than Americans so this comes as a real surprise.
Thinker:
It appears as though houses are being pulled from the market only to reappear later, often with the same realtor and at the same asking price.
I think what you're seeing is a failure of the contingency: that the buyers sell their own existing home first.
Have sellers always been this reluctant to lower asking prices or is this a new phenomenon appearing in the wake of the housing bubble?
That prices are 'sticky' is an old phenomenon. But there is a new problem. In the old days there was more equity in the home because lending standards weren't so insane, HELOC frenzy not so bad, and junk piggybacked loser liar loans didn't exist, for the obvious reason.
Why aren’t the realtors out there educating the sellers about what it takes to make a sale in this environment? Are they? Are the sellers not listening?
Some sellers are literally unable to do so, because they can't close title without writing a fat check. They do not have the money.
Thinker,
Realtors educate the public?
Blind leading the blind, mate. Every down market I've ever seen, and I've seen a lot, is the same. Buyers unable to come to grips with their windfall paper profits chase the market down but they're always behind the curve.
And agents - well, would you expect sensible investment or economic advice from a car salesman? You're talking about very uneducated people here, who's only route to a $200K salary is white teeth and stupidity.
Cheers, Haggis
Thinker-
Houses pulled from market and reappearing again is happening everywhere I think.
For sure it's happening in Seatttle. Sellers don't yet "get" that they need to lower that price- substantially!- to make a sale.
So when it doesn't sell after 5 months, some take it off the market to try their luck some other time.
When sellers get real, the houses will sell w/o all the games and mystery.
As I posted else where before:
- Borrow a few billion, it is the bank's problem
- Borrow a few trillion, it is the taxpayers' problem
Sigh.
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