House prices fall 2.5% this month now 4.4% cheaper than last year FANTASTIC

[sarkin]

Brilliant fantastic got up this morning to find out that house prices dropped by 2.5% in one month and have now fallen every month for the last 7.

This is brilliant yes,yes,yes.

They only need to fall another 32.5% to be in line with average wages.

looks like there is going to be a reccession and I will lose my job, but not my house.

click here for full report

For those that overpaid sorry but thats life

hey Daddycool check out the business pages for the telegraph and FT some top notch reading. The banks have lost BILLIONS all those CDO's went belly up, hedge funds closing, Northern Rock and even worst Bear Sterns going bust one of the largest investment banks in the world shut up shop over night.

You whatch as all the monoline insures go tits up along with the YEN carry trade.

The lenders have lost so much money they are now trying to cover it up by fidling the Libor rate.

Her you go todays news daddycool
Lehman Brothers, Merrill Lynch in the do do

Ahhhh penny drops

Must have been been highly frustrating for you

Me I just sing Sinatra..

You do sound terribly excited Sarkin.

As I understand it the monoline insurers, following their rights issues and split of municipal, mortgage and structured investments are considered by investors and the rating agencies to be in reasonable shape and have maintained their AAA ratings. Whilst they're not writing much new business they're very unlikely to be going to the wall as people initially panicked.

The European leveraged loan market has stabilised over the last 6-8 weeks. The overhung deals are clearing, albeit at discounts, and even the hard to shift deals have found homes (e.g. Boots). The secondary market has also stabilised with ELLI having been consistently around 91-92 over the last few weeks. In short, banks have generally taken the losses on their non-performing assets in Q1 and Q2, either by taking the mark to market or selling outright - liquidity is coming back into the market.

The Fed has provided, and promised to continue to provide, capital to the US banks to support their liquidity so I wouldn't read too much into the CDS market which is notoriously volatile in any event. The effect will be most likely to place constraints on the banks lending abilities and capital requirements (hence the CDS movement), but equally should ensure that a run on the banks (a la Bear Stearns) is incredibly unlikely. I would bet very large sums of money indeed that neither Lehmans nor Merrills will go the way of Bear Stearns, and that no other major bank will either.

Terribly excited

Gah!

See you all at the bottom

You sound horribly smug and frankly rather irritating

C'est la Vie thanks for the input as a humble mortgage broker I take on board as much as I can, you did not comment on the yen carry trade. As for banks, Bradford and Bingley down to 90p from £4 odd dont forget the rights issue by HBOS and the rest.

EstherGreenwood smug in a kind of like middle class England dinner party way then no, more like a, that was so obvious kind of tullip bulb way.

Tulip bulb anyone

I get the FT everyday. when I say adjustment, i mean about 20%.

Mind you, Halifax is only reckoning about 7%.

Hi DaddyCool

I believe 20% = a crash where as 10% is a correction. Halifax have sold off there part of rightmove as they were badly hit in the last crash with estate agents going under.

I was going to post a graph but cant so here is the link

click for link

Happy days for FTB's

what % do you think then?

House prices coming is a good thing but a recession really isn't. I lived through the last one and it was no picnic.

Why do you only post on mumsnet about legal / money matters?????/ Bit of self promotion me thinks - you have to pay for that on this site

Question to SARKIN btw

good point naughtywhatever! and she's a bit of a smarmy git! LOL.

Which business is sarkin promoting?

HE is a mortgage broker and has self promoted himself on other threads

Message withdrawn

no no cod

it's mrsa

and immigrants

Message withdrawn

Even if he's not self-promoting, the tone of his posts is awful. We are potential FTB and we have had to put up with other family members gloating about house price increases for years. Even so, while we are happy that prices are starting to come down for our sake, we're still worried about friends and family who bought last year at the peak.

I work for Bradford & Bingley (sarkin mentioned it in a post) £4 was top share price for a few months on average share price has been £2-£2.80 and yes its dropped to 90p BUT the company was mentioend in money sections not long ago as being one of th most secure financial instututions so share proce does not always give true picture

Strikes me as quite a contrarian approach to self-promotion.
I would have thought mortgage brokers would want to talk the market up.

Sarkin - did you see these comments in the papers??

noted by The Times:
"The extra capital will boost Bradford & Bingley's core tier 1 capital ratio, making it one of the most robust of the high street banks."

"The rights issue was the correct move." ? The Guardian

You will lose your job but not your house???

How are you going to buy a house if you are out of a job, do you have a few hundred K saved up?

I don't get why people are so happy about crashing house prices, I don't know anyone who fondly remembers the last house price crash.

House price falls are only good if they make houses more affordable. If prices are falling because mortgages are not available, interest rates are going up and people are losing their jobs, how is this a good thing?

Because a few lucky individuals with large cash balances and sitting in rented will capitalise on some poor sod's misfortune and buy their repossessed house at a 50% discount? Yes, i can see how this is a great situation!

I blame women. pain in the arse, the lot of them.

Hahaha, WoMen - Woe to Men eh? Damn cheek!