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House Price Crash Forum

E Herts / W Essex


Killer Bunny

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HOLA441
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HOLA442

I've been looking at Stortford - weird market !

Some stuff just doesn't shift (and a bunch of previously SSTC just came back on the market)

and then some stuff sells in days . including 750k type houses

We made an offer above asking few weeks ago which was rejected (don't ask me why I offered above asking, moment of insanity!) and it went SSTC so there is a market.

Some proper kite flyers out there :

This one was one the market for a long time pre-summer at 650k, not sold. new price 735????

http://www.rightmove.co.uk/property-for-sale/property-36215343.html

and this one, 900k for a 4 bed victorian just because it has a glass conservatory??

http://www.rightmove.co.uk/property-for-sale/property-36190305.html

but some other which are more reasonably priced (relatively!) haven't sold for 5-6 months...

any further insights?

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HOLA443

There's a lot of kite flying. This has been on/off for years: http://www.rightmove.co.uk/property-for-sale/property-35534466.html- nice house wrong road, wrong price. This started at £450k last year - last down to 350k and apparently sold (I rang agent when it was 400+ to ask if they had the wrong big figure. Turns out they did): http://www.rightmove.co.uk/property-for-sale/property-51865220.html

It's the price and lack of 2 bed starter family homes that gets me though. 160-175k in early 2013 to 250k+ offered now. I'd say much of the rise in sub 250 is due to the airport and BTL hoovering up to rent, exacerbated by SDLT/HTB changes. I don't know on more expensive stuff, except historically it was becoming an old town (in terms of residents) prior to increased airport and commuter influence, who are now perhaps in little hurry to sell and when they do it's to london commuters?

There are some very nice older areas, but little comes up in them. Instead more of the listings are on newer estates such as st michaels mead, where in my opinion prices are ludicrous given plot sizes and what that would buy elsewhere eg: http://www.rightmove.co.uk/property-for-sale/property-52845200.htmlor http://www.rightmove.co.uk/property-for-sale/property-32279694.html

Edited by northshore
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HOLA444

There's a lot of kite flying. This has been on/off for years: http://www.rightmove.co.uk/property-for-sale/property-35534466.html- nice house wrong road, wrong price.

That one been on the market for quite a while. Actually emailed the agent at some stage, saying we could do a viewing if the asking was below 700, before realising part of the floorspace is in an annexe. He said the owners declined an offer at 750 (Haha whatever) . That was probably March this year...

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HOLA445
  • 2 weeks later...
5
HOLA446

That one been on the market for quite a while. Actually emailed the agent at some stage, saying we could do a viewing if the asking was below 700, before realising part of the floorspace is in an annexe. He said the owners declined an offer at 750 (Haha whatever) . That was probably March this year...

That one is now STC! Together with another 3 or so others last week. One on havers lane didn't sell at 650, relisted at 735 2 months later and now STC within a week. What the f@# is going on?! Who is paying these ridiculous prices...!

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HOLA447

That one is now STC! Together with another 3 or so others last week. One on havers lane didn't sell at 650, relisted at 735 2 months later and now STC within a week. What the f@# is going on?! Who is paying these ridiculous prices...!

Perhaps a pot of basil by the sink cliched it?

http://www.rightmove.co.uk/property-for-sale/property-51666814.html (only a 50% higher asking price than paid in 2008).

Edited by northshore
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HOLA448
8
HOLA449

nuts

100% above 2005. insane. depressing.

having said that I suspect it won't sell anywhere near this price.

Yes a bit tragic - in an area by town we used to stumble around drunk in the evenings during school days so it's not even a road I'd choose to live on. There's one a few doors down offered at 400k less, which if you ignore the cellar and fancy shed is prob similar size: http://www.rightmove.co.uk/property-for-sale/property-36303537.html

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HOLA4410

Yes a bit tragic - in an area by town we used to stumble around drunk in the evenings during school days so it's not even a road I'd choose to live on. There's one a few doors down offered at 400k less, which if you ignore the cellar and fancy shed is prob similar size: http://www.rightmove.co.uk/property-for-sale/property-36303537.html

so that one is strangly enough good value comparably? get it now before it is snapped up!!

Edited by thejaksie
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  • 4 weeks later...
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HOLA4411
  • 4 weeks later...
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HOLA4412
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HOLA4413
13
HOLA4414
  • 2 months later...
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HOLA4415
  • 3 weeks later...
15
HOLA4416

Wanted to chip in, as also watching the market the last few years.

CM23 market - Lots of price adjustments these past 2 weeks and they are all substantial drops.

Rightmove added a new feature to their app as well, to let you see when it last sold and how much for. That will give people the heebies.

Another observation, some houses over the past 7 years have been reoccupied over and over again in our street and each time the new occupiers rip out the new interior and start again, then put the house back on the market with an inflated price. I'm sure to cover the costs of the redo. I guess someone is going to be at the top of the tree soon.

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  • 2 weeks later...
16
HOLA4417
  • 2 months later...
17
HOLA4418

It's over... There is no longer a rung at the bottom and they're starting at 325 and not selling for 2 bdrm (Even with sunshine)

Watching them come on and off with new photos etc, reductions and still not selling.

When you need a joint income of 80k+ to get on the ladder at a time when you want to start a family, it becomes physically impossible without having either a large wad of cash or way above average pay brackets.

Then the next rung of people who do own, can't go up a rung, as the gaps are increasing there too. So becoming becoming cheaper to extend (if you have space). So less people putting houses on market and making do.

Top top end don't appear to be moving at all.

Only my opinion and observations based on listings in my surrounding area and people I know first hand.

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HOLA4419

As for this. Someone took a potshot without checking this forum. Straight back on the market 825, with some new photos.

http://www.rightmove.co.uk/property-for-sale/property-41503854.html

a sign of the times to come? :

http://www.rightmove.co.uk/property-for-sale/property-39718197.html

was on with one agent for 860k for about 6 months, then 2 then a 3rd agent this week. Now up for "public auction" - can't afford the mortgage? wonder what happened.

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HOLA4420

My god. £825k for that. I knew it was more expensive north of London than south-east that I'm used to, but that's surely a bad joke. And you just know there's someone somewhere thinking "I wish I could afford that, if only I could borrow more!"

Edited by spunko2010
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  • 3 months later...
20
HOLA4421

For interest, updated Rightmove supply/ONS price charts for Stortford, with more granular East Herts breakdown available. Numbers just listing per price range or type. Same old cautions - manual, sporadic, unscientific.

MCLsrNq.jpg

Green line is price index for East Herts, inverted on right hand axis.

bJ3ceZB.jpg

Recent pickup in YoY offered supply. Eyeballing gives ~9m lag between supply and pricing trends, which may place yoy peak % in Q3 (nowish, July data) and slowing rate of change thereafter. ONS releases quite slow and below regional methodology uses 3m moving average so too early to confirm either way.

8wi3cut.jpg

Caveats: (1) Higher YoY supply within falling longer term trend, or lower absolute numbers, makes forecasting from any pickup even more spurious beyond short term rate of change at best. As perhaps more clear below, with same supply changes charted against a ratio of supply to prices.

t9Qev4a.jpg

(2) May just reflect amplification of seasonality or political/economic uncertainties.

(3) Supply rise really driven by flats and by houses in the 300-400k bracket, which might represent a rise in local price expectations as much or more than the opposite, because previous supply rise was more broad.

wXqrXqW.jpg

(4) Can't yet know impact of further changes (to owner occupier market in particular, contrasted with what might be known about BTL) - Bank Rate, TFS, QE, whatever Govt looks like doing etc. e.g. there's no such thing as a price reducing "supply side stimulus" wrt private land and housing while zero incentive to sell below price determined by level of demand. Could alter mix of [land+house+tax] price but total may remain constant.

Correlation isn't causation, trends may not hold, nothing definitive about this approach, not possible to reasonably extrapolate price levels so I haven't.

Another random factoid is recent fall in available rentals. Not clear whether this is due to end of summer holdidays (not a trend of previous years), properties increasingly being put up for sale instead (impact of BTL tax changes - esp flats - switch to owner occupation?), just adjustment of letting agency portal choice away from rightmove, or something else.

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HOLA4422
  • 6 months later...
22
HOLA4423

Stortford update:

4eX9mf8.jpg

kPgKS4j.jpg

Supply fell heavily into year-end, even on YoY basis. Has picked up since. Rate of change peak was around July as expected, down from 16.6% to 8% now. Jan 17 average price fell to June 16 level.

Continued drop in available rentals (on rightmove). Partly, optimistically, due to landlords being Edward the Seconded, but no idea really.

Assuming ~9m lag between supply and pricing persists, may portend a short-term yoy pickup around Jun-Sep before rate of change falls again:

3fgh8Iz.jpg

Caveat: Falling YoY supply had taken Supply/Price ratio to new lows. Unless this ratio picks up more, stuff above still rather spurious assumptions:

pLNJeS8.jpg

bukyg4q.jpg

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  • 1 year later...
23
HOLA4424

Stortford update:

wxwoKKK.png

c93G73J.png

Similar supply patterns to last year, but pick-up only in houses not flats so far. Annual rate of change increased temporarily from 6.4% to 8.1% around August as expected. 5% yoy at last release, with Jan 18 average price at May 17 level.

Supply of rentals generally lower in 2017, but recent increase to positive yoy in 2018.

Existing family starter home prices have stalled/fallen in past few months. Likely a consequence of the end of HTB mortgage guarantee Dec 2016, but few on offer. Perhaps the cumulative discouragement of BTL will change this.

Assuming continued ~9m lag between supply and pricing - might see price change rate increase a little to May, then fall sharply again to September with another short-lived increase in December:

eqiSnat.png

Caveat: Supply/Price ratio still low. While broader supply has recovered to Aug-Sep 13 levels, it's increasingly determined by houses (not a mix of houses and flats) and most recently by new build houses with significant subsidy markup. Past price increases and the relative scale of yoy supply changes across price bands (higher for higher priced vs lower priced houses) continues to make it all quite spurious.

i.e. May just reflect or indicate a falling rate of change on a higher average price.

j49nhYr.png

5L11cEu.png

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