Plunging sales rates in 2008 and the threat to new housing development

Plunging sales rates in 2008 and the threat to new housing development

The latest figures show that home sales in 2008 were down 43% compared with 2007, but scarier than that is the drop in level of property transaction over the second half of last year.

This poses a real threat to even “technically” viable housing schemes.

Sales are running well below half of the pre credit crunch level.

The real concern here for house building is that most of the larger and more complex schemes rely on high sales rates to generate sufficient momentum to ensure all the properties are sold.

So even if the developer can structure a project with homes selling at “competitive” prices for the location, it will still face huge risks with potential buyers concerned they may end up living in a part-filled development.

For the record just 908,000 homes were sold last year compared with 1,628,000 in 2007 and 1,686,000 in 2006.

One thought on “Plunging sales rates in 2008 and the threat to new housing development”

  1. Watching the unfolding news with great interest as I have to say that the more that Govs roll towards Printing money to stop the deflation, (Quantitative Easing they’re calling it) then I can only see a huge pent up potential for a take off of inflation again to ‘neutralise’ all these stupid trillion’s that we (Taxpayers) are putting up.
    Seeing as we’ve absolutely no chance of ever getting the Banks / Motor co’s, and all / any other tom dick and harrys bailed out monies back to Gov and therefore us, Hyper inflation will quickly reduce those debts to a manageable level to the serious detriment of actual $ / £ values of anyone holding actual ‘dosh’. Must be time to try and borrow another trillion then while nobody wants to ???? Certainly not a time to have cash !!
    I like the link to the newsletter below and must say that since we first started bailing out Banks, I can’t see any difference at all with Communism and Capitalists systems as they are both run totally by the powers that be in a self interested way.
    Is GB going bust? No it’s technically bust already but you can bet your last breath that we won’t go as my understanding of going bust means that you have nothing behind you to back you up and you start again a fresh.
    Can you see any Government forgoing their incredible inflation incrementing index linked pensions bevcause they’ve allowed their country to bust.
    We –
    (us actual private economy workers and taxpayers and actual money generating people rather than Gov / civil service / public employees / non working benefit claimants)
    – have got to somehow think of a way to join the ‘Great plan’ that is being schemed up by those we support so that we don’t keep getting screwed. Any ideas ?
    Here’s the newsletter I like :
    http://www.fleetstreetinvest.co.uk/daily-reckoning/bill-bonner-essays/world-economy-catastrophe-63548.html?utm_source=FSD&utm_medium=Email&utm_campaign=DailyReckoningLink

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