bearwithaconscience

If you believe the agents at the moment, the market in houses is 'buoyant'. We have just sold our flat for well below asking price, and are trying to get a house, but there is very little on the market.

Thanks for your advice spirit and bocknaark. I will bear your comments in mind. I think that usual paranoia has set in that there is probably something you don't know about a place. It seems like a sleepy place, with a lovely community atmosphere.

I know that prices are in freefall, but I am desperate to buy something in the area. Does anyone have a long term view on the area. It seems quite touristy but slightly off the beaten track. I have heard it can be rowdy on weekend nights, but then where isn't? Any wisdom would be much appreciated.

I have been watching the market here for the past 9 years, and I am convinced I know every single road as well as the prices that things have been selling at. There has been a marked slowdown in the past year, but suddenly every property that was on the market has sold. There used to be for sale signs everywhere and in March they have all sold. Some of these have been on the market for months, even the best part of a year. We were thinking of moving, but there is no property left for us to look at. I have seen this happen before round here, and it usually heralds a step change in prices. Is this just the usual spring effect, from a low base, or is it a sign of the market starting to pick up again?

My baby boomer FIL yesterday was talking about putting their money into 'bricks and mortar'. They are a huge beneficiary so far on the housing market. Oh, and spending every other penny they own as quickly as possible. Good luck to them. I suppose fears of hyperinflation might stimulate a kind of bizarre desperation to have any kind of asset....

Yes, I agree jcpw. Prices are coming down now. Not as much as some areas, but more than the most popular Surrey countryside locations. I did think it was strange that prices were more resilient here and weren't coming down while other areas were. There are lots of fantastic bigger properties plummeting in price if you have 400-500k to spend. I still think this is a lovely area, and one I am happy to stay in. If prices keep coming down, we might be able to buy a decent home one day rather than a flat.

Hang on a second, I've found a more deserving one.......... http://www.telegraph.co.uk/finance/comment...er-bonuses.html

Here's my nomination for private sector waste of money of the week: http://business.timesonline.co.uk/tol/busi...icle5512243.ece

If house prices decline by another 10% in the next year, then buying has cost you an awful lot more than the differential in monthly outgoings between rental and mortgage interest. Even on a 200k house, that will be 20k per annum - over 1k per month. That is why renting makes sense for the foreseeable future. Unless you think you can call the market bottom, or get a distress purchase, in which case you might get the rock bottom price for a property.

I agree prices are taking longer to correct, but I am looking on the borders between suburban South London and the Surrey towns, and I think that prices are starting to shift, albeit later than other places nearer London. There are a lot of places that have been sticking for months and months.

Am seeing this first hand. Many houses that haven't sold have now got 'to let' and 'for sale' signs on. Rents were buoyant, but are now plummeting. I know of people putting in offers of 25% less than asking price on rented homes and being accepted.

The irony of all of this is that Mervyn King has been a consistent hawk on interest rates. He has voted in favour of increasing them to limit the housing bubble. He is about the only voice that has been heard from the 'establishment' talking any sense. To get rid of him would be supremely ironic, but it wouldn't surprise me if it happens for a scapegoat.

When the government nationalised Northern Rock, they suddenly became the biggest vested interest in higher house prices. Of course they always were, but I bet that focused some minds at the Treasury. I'm disgusted at the whole concept of this. I'm sure you're right that it won't work, but the audacity of trying....

Asset price deflation (as much as 80% decrease in value) Cost of living high inflation (40% already in some areas of basic living costs) Overall result High inflation Pay inflation continue to be lower than overall inflation leading to decreased cost of living Major tax increases nipping away from the other side - both stealth and visible New political party and huge decreases in public spending Recessionary decade.

I agree with you that the market in Penzance appears to be dead if you have only had 1 viewing. Have you had any feedback from Estate Agents on whether it is price or something else putting buyers off? It could be that a bit of effort into decor could generate some interest? It looks to me as though properties that need cosmetic updating are sticking a lot more than ones that look nicer. It sounds obvious but there's my take FWIW. Also - from the overhead view, it looks like it doesn't have a garden. In a slower market, properties with any sort of drawback stick a lot more, so a smaller garden might put someone off more if they have a lot more choice. Hope this is useful feedback - not intended to offend.