Do estate agents really think Christmas is in October?
Unlike some I take no great pleasure in the rumblings going on in Britain's property market.
Yes, I think homes are overpriced, mortgage lenders have stoked the fires irresponsibly, and the government named inflation as its number one economic target then failed to do anything about spiralling prices in one of life's essentials - a roof over your head.
But I don't actively want a house price crash - it would devastate anyone who has bought over the past few years while leaving the asset rich older generation untouched.
I also don't feel any particular antipathy to buy-to-let and think that done properly it is a useful way to invest that gives people a degree of control they fail to get from the finance industry.
Furthermore, I think owning your own home is a good thing.
However, I do wish those with a vested interest in property would stop making the kind of foolish claims that even the lately departed England boss Steve McLaren would baulk at making while grinning through with his nice shiny teeth.
My favourite recent one comes from the National Association of Estate Agents and contains some interesting thinking.
The NAEA figures for October revealed that the number of potential buyers has dwindled rapidly and spun it thus:
'The number of house buyers on estate agents’ books was at its lowest for the past four years, with agents reporting an average of 282 buyers registered (in October) in comparison to the 326 recorded in September 2007. Interestingly, the second lowest figure recorded was in December 2005 with an average of 302 buyers reported, indicating that the market is experiencing the type of slowdown often experienced in the festive period.'
Can you see what they did there? Slowdown, lowest number of buyers for four years, compare to second lowest number, must be a festive period slowdown.
Skips the crucial point - Christmas is in December, not October.
We are not stupid.
- Simon Lambert, This is Money
Useful links:
Simon, if you buy have an offer accepted in October, and it takes 8 weeks to exchange and complete, when are you going to move? Christmas.
Posted by: Mike | April 21, 2008 at 11:55 AM