housebuilders Bovis29 Jun 2016 12:24
When the media hype stops, certain shares will be seen to have been an absolute bargain.When McArthy and Stone report they are on track to meet this year's targets, and through to 2019 although Brexit may delay some completions it gets reported " that Mc And S issue warning !" Then Goldman Sachs say builders will be hit and knock 725p off the target price for Bovis you wonder which boy scribblers they use to dream up a scenario knocking companies such as Bovis by a factor of 50%..
Obviously Osborne's nonsensical predictions of 10 to 18% reduction in house prices must weigh heavily on some but how was it arrive at. Does he and the G Sachs "experts" believe there will be such a massive drop off in demand when overseas investors find our property cheaper whilst sterling is depressed? Do they think that all the tens of thousands waiting to get on the housing ladder will disappear. Do they think interest rates will go up when the consensus is the reverse. That the bank of mum and dad will cease to fund starter homes?
Unless the law of supply and demand ceases because of Brexit and /or builders suddenly triple their output when resources are already stretched in terms of available skilled labour the only way that house prices will fall is by self fulfilling prophesies from Chancellors and others with vested interest in retaining the doom and gloom scenario to push for another referendum.
In the meantime Bovis under £8.00 is an absolute streal