Lots of people don’t realise they are on a cycle, they still think “the ship is listing but it can’t sink, it shan’t sink, they said it was unsinkable”. It may be denial but there’s fear in their hearts. I think fear may be the shortest of all the emotions on this ride.
Depends on how long before BOC takes to realize Jim Power now has some credibility after terminating his trip to Damascus, a painful process involving ridicule but something that has to be dealt with. He’s already taken the first step by admitting it was all a scam. Once people like BOC and Izzy tell the masses that the Cannys and Savvys now trying to lock in any gains at all and off loading the nine BTLs before the repo men come for the Z4, then we’ll see some serious movement but it will take 12 months of continued job losses I fear. I often fear we could have another bubble a lot sooner than would be normal, ie in 8 or 10 years time as most of the population think that the business model of buying as many properties in itself is a sound proposition if it wasn’t for Lehmans, Scooby Doo and those pesky kids.
I would have thought denial heading towards fear but I have seen a definite bounce back to denial recently - I’ve been told “great time to buy” by several otherwise intelligent individuals. No amount of facts or rational argument can change their minds as they stare at me like I’ve two heads for dampening their optimism. I suppose most home owners or prospective owners just want to believe we are at the bottom.
I agree Denial and the reason being I just dont think people realise just how bad it is out there and how much shite the country is in. It will take cutting the dole and health services etc to drive this home bacause people suffer from lethargy to a great degree in this country in that i.e. “if it doesnt affect me then Im not interested” and that plays into the governments hands.
I haven’t voted, as I can’t choose just one option to encapsulate the mood. I think we are in a large spread from denial through to capitulation.
I think that there are a lot of house-sellers out there who have realised which way the wind is blowing, and are capitulating. These are the ones whose properties are selling.
There are also the sellers who have their fingers stuffed in their ears and are singing ‘la la la la’.
I think the point made by Ozzy about people knowing things are bad, but not quite HOW bad is very valid.
I also agree with Django in that there is a dead cat bounce going on. I think that this is due to a variety of factors - (i) a decrease in prices is making houses, relatively, seem ‘cheap’/‘good value’; (ii) it’s sunny; (iii) boredom - people are bored of the recession - ‘enough already’, and are resuming their normal behaviour.
ETA: I just voted ‘fear’, which I suppose captures where I am. I am interested in buying, but the prospect of further wage cuts and increased taxes means that I am loath to commit myself to a scheme of repayments based on my current situation. I would also hate to buy now and see prices end up 100K down in a year. So, again, fear-based logic.