Monday, Nov 17, 2008
The Quicker The Better
TIMESONLINE: Homeowners slash asking prices £6,500 in a month
British homeowners are slashing the asking price on their property by as much as £6,500, as some estate agents reduce the value of deals by as much as a fifth in an effort to shift houses.
According to Rightmove, the property search website, the average asking price of a home in England and Wales in the four weeks to November 8 was £223,000 - a 2.9 per cent decline on the previous month and the biggest fall since records began in 2002.
Over the year, the asking price fell by 7.1 per cent and Rightmove said some estate agents are selling houses for about 20 per cent under peak prices.
Miles Shipside, commercial director of Rightmove, said: “Some sellers could avoid months of disillusionment and despair if they started marketing at an asking price a lot closer to where the evidence".
11 Comments
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1. titaniccaptain said...
As this snowballs into the next year we will see the utter destruction and capitulation of the property market.............4 bed house in good area 50 grand :-p....................ha ha ha ha.............bring it on
2. mark wadsworth said...
some estate agents are selling houses for about 20 per cent under peak prices
Good. Then we about a third or a half of the way to the bottom in just over a year. Two more years of this and houses will be cheap again.
3. harold said...
"Two more years of this and houses will be" ...reasonably and realistically priced.
4. titaniccaptain said...
@ MW
So you think 60% drop these days eh?............thats a more bearish than a few months ago..........I think its time for another poll there Wadsworth.........what says you?
5. titaniccaptain said...
I think 50 grand is a reasonable price for a house anywhere......lowering house prices has good social implications aswell.............i.e. you dont have to live like a slave to your mortgage, one person can stay at home and bring up the kids instead of two people hardly seeing each other working on opposing shift patterns then dropping the kids off to playgroup etc......
6. japanese uncle said...
50 grands for a house is good enojgh. But unless some legislation that prohibits multi-house ownership is introduced, there may be a sort of 'enclosures' of housing stocks. Greedy people with a lot of cash can do that.
7. Crashwatcher said...
If house prices are going to go down to 50 grand then I'll buy one for my son (or give him the money to buy one). That way he will have a house to have a family in next time the sky rocket!
8. brightonrentfodder said...
the problem you have there is the politicians themselves are into multi-house ownership, and they've already blocked taxation in this area, so nothing will be done in that respect let's face it.
Much as I'd love to see houses down at 50K, in the south I can't see that happening. maybe 70K in a year or two if we're lucky.
9. shipbuilder said...
5. titaniccaptain said...
"I think 50 grand is a reasonable price for a house anywhere......lowering house prices has good social implications aswell.............i.e. you dont have to live like a slave to your mortgage, one person can stay at home and bring up the kids instead of two people hardly seeing each other working on opposing shift patterns then dropping the kids off to playgroup etc......"
The problem is TC, is that there are now industries and swathes of businesses reliant on two-income families, so going back to what you what yopu propose in our current economoic system would be a recession and therefore a disaster and the people will demand that something is done, even if that something will hurt them in the long run, like turkeys voting for Christmas.....everything we do to stop the recession will lead us further away from what you propose.
The problem is therefore our economy reliant on constant expansion - in this twisted paradigm, rising house prices are good, 'hard working families' are good (the harder the better), minimum wages are bad, free time is a waste, debt is good, saving is bad.
Unless we address this, our problems will NEVER go away. Some on here propose monetary reform, which I agee with, although I don't believe it's the whole problem - I see laissez-faire capitalism as a huge part of the problem as well, although those looking for monetary reform don't agree.
10. titaniccaptain said...
@shipbuilder
As usuall you make an exellent argument........
However my outlook is based upon the disasterous recession we have entered and one that will be unable to hold house prices above the average wage which I believe will fall to minimum wage.......
11. Kruador said...
@shipbuilder: the exponential growth model also means we consume ever increasing amounts of resources, even if we don't overwork people (which we do). You may not agree with climate change theories, but it's not a great idea to be using up more and more fuel every year. There's only a finite amount of renewable energy available.
We need to be targetting not consistent low growth but consistent *zero* growth. That means some years we may have a little economic growth, and others a little recession. Recession is natural and necessary, if you define it as any negative growth.