Wednesday, Jun 25, 2008
Great headline!
Evening Standard: Slump knocks 40% of price of home in four months
The six-bedroom Victorian house in sought-after Bedford Park, west London, went on the market in early March for £3.2 million.
Since then, the collapse in interest from buyers has forced the sellers to cut the price, first to £2.6 million in April, then to £2.25million in May and finally to £1.9 million this month - a total reduction of £1.3 million.
Posted by mark wadsworth @ 02:39 PM (1225 views) Add Comment
21 Comments
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1. Landedgentry said...
The owners are pretty disheartened about the whole thing," said one. No house on the Grabiecs' street has ever sold for more than £2.1 million
And that was in the best of times, so keep cutting.
2. uncle tom said...
The market is utterly swamped with top end property.
In my home postcode area (CB11) there have been ten properties sold for more than £500k in the last six months, yet Rightmove currently list no fewer than 51 with asking prices at that level; implying an average 'time on market' of over five years!
- Check out your postcode area..!
3. uncle tom said...
OK, I can't multiply - time on market of over two and a half years..
4. cyril said...
I see the owner had tarted it up and was hoping to make a big profit but he was just too late. Ah.
I notice that propertysnake.co.uk gets a mention in the article - all helps to spread the good news
5. another alan said...
The same paper that had crazy bullish headlines 12 months ago.
(As the Express, the Mail etc).
Maybe ASSetz will make a similar change in pronouncements!
6. japanese uncle said...
Anyone tyring to push a house like this and that in Croydon(!) at the price of 3.2 Mil(!!) should be in jail or straitjacket.
I thought at first Bedford Park may be in Nightsbridge or Chelsea. Hahaha.
7. yorkshireman said...
This price is totally out of all proportion, particularly when it is held up by a shrinking and panicking financial services "industry" in London.
40% of £3.2 million on a sale is £1.28 million. 40% of nothing is nothing and if you cannot find a buyer willing or able to buy, that is exactly what you have - nothing.
8. titaniccaptain said...
J.A. at this rate your going to have to revise your figures of 25% drop by end of next march........by how much I do not know
9. angonamo said...
A spokesman for agents Faron Sutaria, who are marketing the home, said: "I think it's going to go pretty quickly now, but it started a bit too high. Even when it was on at £3.2million there were lots of viewings but no offers."
'I think it's going to go pretty quickly now' - Ya think so, huh
'but it started a bit too high.' - Scuse me, who valued this 'a BIT too high' ?
'Even when it was on at £3.2million there were lots of viewings but no offers.' - You're joking ?
10. titaniccaptain said...
Actually slightly off topic but this needs to be shared..............There is one thing that you should not buy right now even more so than a house........I am of course talking about a Domino's Pizza......Just had one.............biggest mistake of my life....I can feel my body expanding as I type....NEVER BUY ONE......Had the taste of vomit on dough. Why are they such a big chain????????Their food is cr@p
11. titaniccaptain said...
ooooops that was meant to be J.U. on no7.....sorry Pizza clogging my brain
12. icarus said...
UT - you're comparing eggs with apples - achieved prices with asking prices. A property with an asking price of £520k probably won't be on the market for 2 and a half years - and it probably won't bring £520k either.
13. it_is_going_with_a_bang said...
"but it started a bit too high"
Yes that would be the understatement of the year.
14. need-a-crash said...
As this example illustrates most EA's have only just revalued asking prices back to last summers levels, so we're yet to see any meaningful reduction... oh well, at least my salary doesn't depend on house sales!!!
15. icarus said...
'It started a bit too high'. An understatement, a tautology (if it didn't sell it was too high by definition) and (agonomo's point) it didn't value itself in the first place. My favourite EA tautology - "properties which are correctly priced are still selling".
16. waitingfor hpc said...
this comment was great from the paper:
It's just the start and long overdue. In the Barnard Marcus auction yesterday it was carnage, about 75% unsold. Yes I am in property, or was, the smart money got out back in 2006.
I know some pretty well placed experts in many fields and they are now in shock over our future, it looks very grim. Take a good look at the debt UK people are in, the highest in the entire world. If I were a betting man, I'd say property will drop no less than 40% over the next few years and some experts privately agree. This could well be an understatement. Too easy credit plus a lack of houses built and no way of stopping the influx of more people. Add inflation for commodities including oil and you have a perfect storm. Today's lower house price will seem like a overpriced rip off, in a few years because it is. I'd also bet that prices will not rise again for at least 8 years, if then.
This country is governed by short sighted PC correct morons. I actually left the UK in late 2004, we / now you are a sad joke abroad. Worst of all, there will be no change. I've just been to Canada, go there, property prices 1/6th of the UK South east price, detached 4 bed in just under 2 acres are $230k, take away Starbucks type coffee $1.27 and a ride on mower $1,200. I paid 4 x that for a smaller one in the UK. I could go on, but what's the point, glad I left and won't be back anytime soon.
- Tim Miller, Road Town ' BVI's
17. p. doff said...
I previously mentioned a house that has just sold locally - the one where the seller had no luck and changed agents, adding another £30K onto the asking price, well, the sale went through at £5K above the previous asking price. The seller is over the moon and the buyer no doubt thinks he's got a steal at 25K below the current asking price.
Well, and this is the interesting bit, the buyer is apparently an estate agent (from another part of the country obviously).
Hahaahahaahahahaaa!
18. icarus said...
p. doff - maybe the original asking price was too low because the EA/valuer was desperate to achieve a sale.
19. Bangybongo said...
``Yesterday, it emerged that the number of mortgage approvals dropped to an all-time low of just under 28,000 last month, less than a third of the peak figure recorded in February 2002. With London accounting for roughly 15 per cent of the UK property market by number of transactions, that means only about 4,000 mortgages were approved in the capital in May.''
That's just TINY. We are bound for a deep depression, not a recession.
20. p. doff said...
icarus said...
maybe the original asking price was too low because the EA/valuer was desperate to achieve a sale.
I don't think so. If the original asking price had been too low then the first agent should have got a sale during the months it was on the market. Also, the seller had other market appraisals - all around the same original price. (Not too difficult to value as an identical newly built house next door sold not too long before).
21. gardeniadotnet said...
10. titaniccaptain said...
Actually slightly off topic but this needs to be shared..............There is one thing that you should not buy right now even more so than a house........I am of course talking about a Domino's Pizza......Just had one.............biggest mistake of my life....I can feel my body expanding as I type....NEVER BUY ONE......Had the taste of vomit on dough. Why are they such a big chain????????Their food is cr@p
Now there's off-topic and there's off-topic.
Off-topic police - James, Denzil, P. Doff, where are you when you're needed!!!
HPC Webmasters, I demand you remove post 10 at once!!!
G.