Sunday, Mar 23, 2008
A total nasty meltdown!
JudithHeywood: Asking prices up; homes take longer to sell
"Rightmove said that the number of unsold properties was at its highest level for this time of year since it began to publish its survey in 2002. Each estate agent had an average of 67 homes on its books, up from 56 a month earlier, it said. The website's figures also showed that asking prices had risen 0.8 per cent to £239,655 as homeowners try to push up prices. However, it estimates that actual selling prices have fallen 10 per cent since their peak last year" there is a lot of EA tactics in pushing ludicrous asking price to secure mandate, but then actual sale prices are down 10% !!! FANTASTIXXXX
Posted by confused76 @ 11:22 PM (905 views) Add Comment
15 Comments
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1. bystander said...
One less reason for the MPC to panic cut rates in April. There is no point in cutting rates to bolster a 'flagging' house market if 'asking' prices are still rising, and the libor is still rising despite the recent cuts , and the lenders are removing affordable mortgages due to funding issues, due to distrust. Surely dropping interest rates aren't going to make the banks trust each other again. It has done the opposite so far both in Europe and America. Gieve and Blanchflower need to stop reacting to pressure from their investment banker mates and start to look at the wider picture.........not to mention real inflation.
Sorry, a little off-topic.
2. little professor said...
Asking prices are UP 0.8% month-on-month. Seems like the message is not getting through.
3. Mikelivingstone said...
Little professor said > Asking prices are UP 0.8% month-on-month. Seems like the message is not getting through.
No worries about this home.co.uk survey has demonstrated asking prices have risen due to a flood of high end properties hitting the market.
Guess what, they won't sell. In Surrey there are 1500 properties on over £1m and in Sussex over 400. There are probably only 200 people interested and guess what, they are not stupid enough to buy in a market that is 10:1 oversupplied.
4. bufferbear said...
But actual prices are down 10%:)
5. planning4acrash said...
Since when was Branch-Flower-Power reacting to anything? He consistently asks for cuts. He's a one trick pony.
6. Daringsneakybeaver said...
Nobody gets this. UK house price statistics are massively prone to distortion depending on WHICH sorts of properties are being offered for sale, and which are actually sold.
For example, if a glut of £1m+ houses come on to the market and then sell, this will inflate the AVERAGE prices that are reported. All it means is that more expensive houses than normal have been included in the data. It says NOTHING about the other houses in the housing stock.
So if asking prices are "going up" (which I really doubt anyway, as all the statistics are bent) it probably means lots of people who've ridden the boom up and now trying to cash in and are trying to shift the properties that have gone up the most. If I had a big portfolio, that's exactly what I'd be doing anywaya - but I'm not, because I sold a year ago and now own nothing, and am renting instead while all this nonsense clears out of the system. House prices going up forever BLAH BLAH BLAH housing shortgage BLAH BLAH BLAH immigration never going to end BLAH BLAH BLAH lots of oil money making foreigners buy prime property BLAH BLAH BLAH just like Japan 1989 and Hong Kong 1997.
House prices in every estate agent's window I look in, and every newspaper I read are no higher than a year ago and in many cases lower. I monitor London and the even more lunatic housing market in Cambridge. Check this out, in Cambridge a 2-bed flat overlooking a railway bridge, a car park, a multi-screen cinema and a main road sold for £1.5m around 2 years ago. I wonder what price that'll come back onto the market at, and what effect will it have on the averages?
7. Orwell said...
I think that interest rates should fall so that the house price inflation is maintained and gordo reelected.
There I am an MPC Committee member. Can I have £1/2 million quid salary per annum?
8. Kronen said...
I have just put my home up for sale, it is the first time I have ever sold a home and have been watching prices so as to see how much I could expect to sell for. When the estate agent came he said that house prices were still rising and houses were still selling at the same rate (bulls**t) so I could put my home on the market for X£'s. It seems that the asking price for the average house is being pushed up by the greedy estate agent who is still trying to pay off his porche.
9. Greytornado said...
Houses are just a commodity - but the sheep haven't worked that out yet and can't get their heads around the fact that a drastic correction is possible. It's rather like driving down a Motorway, all the traffic gets faster and faster, but it's no problem, beacause it's all speeding up together. However, a juggernaut, (the Lenders) has without warning just done a massive emergency stop. In a matter of seconds, there is going to be the most God Almighty pile up..........................................................
10. Stevie Dee said...
Come on guys... there is no credibility in the stats. Look at inflation. Just have to talk to friends & shop-keepers, money is drying up, people are skint. Even escorting is slowing dramatically, people just have not got the money. You have to look at these articles in the way they would have looked at the HPC a year ago. The problem for these commentators, is that they are part of a lie, we are merely pointing out the obvious truth.
11. mark wadsworth said...
It's not just the number of unsold properties per EA that have gone up, the numebr of estate agents has gone up as well. There used to be four EA's near Leytonstone station, there are now about twelve. Does anybody know where to find the total figure for unsold?
12. Landedgentry said...
Sellers are only doing themselves a dis-service. They still have mortgages to pay and are probably losing even more by delaying the sale. No matter we just have to wait until the deluded fools start cutting prices dramatically when they reach breaking point. They say you should let your profits run, but they also say you should cut your losses. I wonder how many of them are on sleeping pills?
13. Maihem said...
@Kronen, the estate agents are pricing it up to make you feel good when you talk to them. Whoever tells you you are richest gets your business. When a buyer goes in to an estate agent at the moment they say "It's listed at £X but if you want to offer less then, heh, that's up to you" (that's exactly what happened to me). They don't say that when one of their sellers is in the office. The estate agents don't care about the height of the house price curve, only the square of the first derivative. They just want houses to shift and shift through their books. I don't blame them, either.
14. new user 2007 said...
The people who bought in the last 2 years are scared. Either they will sell now out of panic about going into negative equity, or they will have to stay in the same house (if they can still afford to) until the market falls and picks up again (years from now).
The worst people are those who bought more than two years ago. Them stalling and not budging on price is driven by pure greed. They seem to think they have some god-given right to high prices. That filters through each stage of the pryamid.
BTL replaced FTB over the last two years and had more money so outcompeted. That also filtered up through the market. The government's recent paper that BTL had no effect on FTB was incredible..it looked at the overall market rather than the part FBT and BTL compete in.
Now that both have either left or cannot get funding, the house of cards is about to collapse.
15. Duncan said...
Advice for Kronen (if its not too late)
Don't let an Estate Agent talk you into taking out a long term contract.
When I was trying to sell my house in 1996 I made the mistake of signing
up for a 16 week sole agency contract (despite the fact that the agent reckoned it
would sell in weeks). After about 8 weeks he kept coming up with "new ideas" for marketing
the house which all seemed to involve slashing thousands off the original asking price which he
had been so confident about. In the end the only buyer he could find couldn't get a big enough mortgage
and I was stuck there for another three years. It even cost me money to get the deeds transferred
back from my solicitor to the building society :-(
In a rising market any idiot (or even an estate agent) can value a house. If their estimate is wrong in March it
will be right by June. Pricing a house in a falling market needs real skill . Get it the slightest bit high and
prices will slip away from under yours while you sit around wondering if you are going to get any viewings.
Good Luck
:- Duncan (bought in 1989 and didn't get his money back until 1999)