Banks tighten lending and demand money upfront - IT

Right. This is one of those situations where the market can stay irrational longer than the builder can stay solvent. Only problem is the market is not irrational. It is becoming rational.

The tragically stupid builder will try tough it out while the clever one will rush to cash in his chips. Of course there is always bankruptcy then emigration.

Oh. Back to normal then, about time.

That would be cause nobody could be bothered to tell you.

OK, but the only way the current market conditions won’t remain the same for at least the next one to two years is if the current stalemate end. Someone has to blink.

So, who’s going to blink? buyers or sellers?

What I’m getting from the above is that this guy seriously thinks the buyers don’t have the stomach for one to two years of waiting and that it’s a foregone conclusion that the buyers will blink.

I presume that’s why he thinks there won’t be a “wider impact”

But, a long stalemate hurts sellers and helps buyers. The longer it goes on the less likely it is that the buyers will be the ones to blink.

If the sellers are going to blink then they should blink now and get it over with. otherwise the get the double whammy of interest payments AND eventually selling for less.

-Rd

The stand-off is actually between the banks (who aren’t giving the buyers the loans like they used to) and the sellers. The banks are in no position to blink. Once this penny drops with the sellers there’ll be plenty of fluttering eyelashes in the direction of the blushing buyers.

I think the slowdown in the wider economy is also going to have a significant effect on the stand off by buyers continuing, retail seems to be really suffering at the moment. If people are not prepared to put the money down to buy a sofa then what hope for houses?

The public is set to be bombarded with negative stories such as weakness of tax revenues etc. etc. The world economy is sick, where do they exprct a “feel good factor” to reappear from?

I really can’t see anything to cause a significant rush to property within the next 2 years.