Tuesday, Jun 24, 2008
This time from an EA!
Thisismoney: London house prices set to drop by 25%
It was Savills' most negative outlook yet for the housing market and fuelled fears Britain is heading towards a crash. Economists are warning interest rates may rise this summer - pushing the price of mortgages ever higher.
Posted by pendulum @ 02:13 PM (877 views) Add Comment
10 Comments
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1. pelethar said...
What a total joke.
2. pelethar said...
Oops! That comment was meant for the blog about Darling telling the banks to stop charging fees!
3. confused76 said...
"Savills said the continuation of the credit crunch would trigger a 25% fall in prices before the end of next year"
"Savills thinks prices in London will fall 10% this year and 4% next year"
Doese this mean that prices in London have already fallen by 25% - 10% - 4% = 11%
11% actually sounds about right here in West London
4. pelethar said...
I've seen virtually no movement in initial asking prices in my area of SW London (Putney/Wimbledon). And houses are still shifting. Some evidence of people cutting prices to get a sale in certain cases but so far massively disappointing from my perspective.
5. confused76 said...
Here in NW London property is not shifting at all, we have also had some ludicrous discounts like houses in Hampstead coming down from 4m to 3m and still not selling. I suggest you have a "snake" look at NW6 and see some desperate rebates, e.g. 3bdrs down from 1m to 850k. Let me tell you... that sh!t was selling for 1m a year ago.
http://www.propertysnake.co.uk/site/postcode/nw6/2/curr_price_desc
6. Papabear said...
Agreed c76 - I also live in NW6. However, note the number of flats/houses on for sale. A year or two ago there was a fraction (almost made you believe the property 'shortage' myth at the time)! Give them a couple of more months and sellers will realise that summer has come and gone and they had 0 viewings, let alone offers. The smart ones will realise that they will have to wait at least 10 years before they may get these prices again (and that's nominal prices too)!
7. A_landlord said...
I'm on the lookout for a home in the Guildford and same story here with very little movement in prices over the past month. One house in a good suburb is down from 850k to 750k (but they were mad asking for 850k last year), and there has been no real movement for the other properties - with an ever increasing list of +1m houses being added.
One EA said to me last month that the only houses that are selling are those at 2006 prices. This is not being reflected in the advertised asking price.
I wonder how many viewings the sellers at summer 2007 prices are getting. I'm certainly not bothering until next winter unless prices start tumbling.
8. pendulum said...
Seems to be massively regional - top areas still holding out. I was told not to bother offering on a recent place if I had to sell, due to the freeze so only no-chain buyers wanted. There were 5 offers on the asking price, all fell through due to lack of finance, EA called today and said make an offer. hmmmmmmm,. 25% under sounds good.
9. Doghouse said...
Very little movement on asking prices in the North East (except for city centre flats in Newcastle, apparently!!!!) An EA phoned me today and I told him that yes, we are interested in buying, renting with money in the bank, but they have to start talking their vendors down on asking price...he told me they are trying to do that, but many have little equity. OMG, I wonder just how much MEWing has been going on to fund flash cars, holidays and Made In China tat!!! I told him if they keep holding out for high asking prices they are going to keep missing the chance of selling as the market continues to fall...by the time they wake up and drop 10%, values will have plunged further and...oh look still no viewings.
After being laughed at, sneered at and scoffed at by EAs and vendors when I dared to put offers of -10% asking price in last year (phew, glad now none of them bit!!!), I refuse to play the low offer game now. I will only put offers in on houses if their asking prices are realistic...and I'm prepared to keep waiting until that time comes.
10. planning4acrash said...
Rubbish, they will fall 60%, if we are lucky enough to retain a currency. We already have negative coinage (you can melt down the metal of a coin and sell it for more than its value as a coin!) - But we actually run the risk of negative paper money. Seriously, I'm not kidding. When you print hundreds of billions, you unleash untold forces.