RE: Lies, Damn Lies.... and Statistics...3 Jul 2023 14:53
mike talks a lot of sense in that comment, and looking in that front windscreen, you'll have to s***** hard to find a ray of sunshine, even on the horizon.
nationwide figures are almost worthless, and are particularly useless in times of turbulence, high beta and fast moving events. we know this as actual home sales have tanked....due to interest rates and the delusional asking prices most seem to insist on asking, with first time buyers (the engine of the property market) well and truly stalled, simply walking away and waiting.
it is a showdown between baby boomers and their yesterday's pricing of btls vs interest rates vs first time buyers. first time buyers can't afford current market prices. therefore will interest rates give in first, or property sellers?
in the last month, it looks increasingly likely that property sellers will give in, and asking prices will cave. only then will the engine of the property market sputter back into life.
you'll be surprised how stubborn some sellers are, particularly baby boomers who are the worst! i frequently ring around estate agents to gauge the market....many refuse to budge from asking despite the property being on the market for over 6 months! this is the behaviour that is propping up nationwide figures, despite firm market rejection of said figures.
the only reliable figures in times like this are ons figures....but are months behind the curve. only then would we be able to see the full extent, but rear looking. i am willing to bet that the "liquid" part of the property market (realistic sellers) are trading at least 5% below nationwide figures which are largely based on a frozen market. that's the cause of hbs tanking this month.