Tuesday, 19 February 2008

Jordan prices

These days, it is hard to escape Katie Price aka Jordan. Even the Times cannot keep away from her. Yesterday, it did a feature entitled “Katie Price is right”. Apparently, she is a role model who is “self-supporting, hard-working, uncomplaining, cheerful, courageous, a humble girl made good who sticks by her man”.

Personally, I think it is more than a little sad that the Times consider her as a role model for women today. She is someone who got her start in life by taking her clothes off. However, that rant is best preserved for another time. This is a housing bubble blog, after all.

I did, however, learn two interesting things from the Times article. First, her recent book outsold all the authors on last year’s Booker prize short list, which is a shocking indictment of the UK’s reading habits. On the strength of that statistic, I have decided to bin my novel about an angst-ridden renter in North London. Instead, I will focus on a new project - my autobiography - which will come with lots of pink framed photos of me with the six-pack Adonis that lives with me.

Second, Katie has just downsized and she intends to sell her implants for £1 million on ebay. When confronted by this seemingly preposterous sale she said, “Someone will buy them, there’s always someone.”

Some of this Jordan “it will sell” attitude has also gripped the housing market. Earlier this week, rightmove.co.uk announced that asking prices are on the rise. In February, house prices surged 3.2 percent, bringing a “huge relief to homeowners who have been concerned about falling prices in a faltering property market.” Sellers have taken comfort from the Bank of England’s recent easing of interest rates. Sellers are hoping that yet another round of easy credit will fire off one more surge in house prices.

The optimism underlying this rise in asking prices is extraordinary. House sellers have faded out the cacophony of recent bad news, which if sellers had any sense, would have prompted them to slash their prices and run for the hills.

For reasons that I can not understand, sellers are unimpressed with the recent data from Halifax, which indicates that prices have been falling since July last year. Likewise, collapse of Mortgage approvals has left them unmoved. The buy-to-let investors must be looking elsewhere for financing after Paragon has shut up shop. They seem unfazed by Bradford and Bingley’s year-end results with its deeply depressing account of higher loss provisioning; financing difficulties; and reduced interest margins. They have ignored the gloom-laden warnings from Bank of England Governor – Mervyn King –of a slowing economy, rising inflation and real declines in living standards. As for Northern Rock, that was last year’s problem.

Sadly, for sellers, asking prices are not sales prices. Sellers may ask, but they will not receive. Already, there are clear signs of accumulating housing inventory.

Rightmove did not trumpet the inventory data with the same zeal that they did with asking prices. Nevertheless, it did report that estate agents now have the highest ever level of unsold homes recorded for this time of year. It also reported that homes are also taking an average of 93 days to sell, up from 78 days just 12 months previously.

Sellers may find that their “someone will buy them, there’s always someone” optimism is misplaced and that Jordan prices do not clear the market.


Anonymous said...

I think its about time Britain discarded these utterly useless "celebs" from our popular culture. The like of Jordon ( 3 biography no talent, someone needs to inform her what a biography actually is) and Jade "dumb as they come" Goody make us a laughing stock of the world, what kind of society venerates these wastes of space above people that actually progress our societies through science or selfless deeds that inspire our young people?

Instead what we have is a culture of worshipping the dumb and the greedy non entities with no talent and who are famous because some marketing idiot decides they will be. The constant thrusting in our face of thier parasitic lifestyles and "get rich or die trying - sell my implants coz someone will buy it innit" attitude is corrupting the values of our young people who are crying out for some real inspiration from real people worth holding up as examples.

This is just a symptom of an even bigger disease of greed and selfishness that rewards failure, employs political classes on 6 figure salaries that know no limits in their pursuit of power and spending of "our" money paying off their mortgages on 2nd homes when most of the population cant even afford one to raise a family in.

Rampant houseprice inflation leaving millions without the basic s of safe affordable shelter due to greed of VIs and pig-men bankers who can only make money by keeping as cowed and poor..yes we get the leaders and "celebs" we deserve, unless we as a society do something about it, for the sake of our childrens, children and beyond.

Anonymous said...

Bit shocked about the Booker price. Why didn't they nominate Jordan?


Inflation buster said...

Did you see that Mortgage lending is up in January. What is wrong with us?

The Real Lizzy said...

Don't worry about the mortgage lending numbers. It is a temporary blip.

Lord Wraggley of Myre said...

I rather like the sound of this Jordan. I need a new scullery maid, too, for my castle in The Vale of Cromlach. Does she do French, anyone know?

PS I was going to invite Alice for the weekend to my little stronghold, but now she tells us she has an Adonis at home! With a six-pack, whatever that is. The only six-pack I have is kept in the pantry at room temp, beneath my Chateau Nom de Plume 1898--a fine year. Especially for Impressionism.

Pip! Pip!

Anonymous said...

Hi there,

Thanks for sharing the link - but unfortunately it seems to be down? Does anybody here at ukhousebubble.blogspot.com have a mirror or another source?