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Concerned The Crash Isn't Happening?


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Great that you've been able to provide another update. Good for everyone's sanity that it hasn't sold at any of its original inflated asking prices.

What annoys me about this house and others that I have been watching is the complete audacity of the original asking price.

Blame the Chancellor, blame the Estate Agents but if you want the real reason for rampant house price inflation I think vendors have to take the largest part of the blame. And apart from those that sell up and don't buy again, it is the vendors who gain the least from rising prices. By our nature, we are a greedy species.

Xil.

That house won' t sell for anthing over 450K -- even that is too high in my book.

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"desperately want to buy"

I simply don't get it.

On every metric it simply makes no sense to risk a capital loss on a shaky investment like property. It's cheaper to rent, so why risk financial misery by buying?

What is this obsession with the desire to own a badly built and overpriced shoebox when one can find a much nicer home via renting?

Edited by Red Baron
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I notice if you click on the original link in the first post you get:

"Hetheringtons Countrywide, Loughton, have removed this property as it may now be sold, under offer or temporarily withdrawn from the market."

Even though it is on with another agent. My first reaction was to think that it had sold.....

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Guest The_Oldie

I notice if you click on the original link in the first post you get:

"Hetheringtons Countrywide, Loughton, have removed this property as it may now be sold, under offer or temporarily withdrawn from the market."

Even though it is on with another agent. My first reaction was to think that it had sold.....

How odd, I clicked that link yesterday and I'm sure it worked then.

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The asking price has dropped but you can put your property for sale at any price ypu want. For example if the agent tells you it is "worth" 500k as that is the price for similar proerties and suggests asking 550 "to allow room for negotiation" there is nothing to stop you asking 900 or 2million or whatever figure you like. You won't get any viewings or sell it but you might be able to convince a bank to lend you more money against the property.

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I've been looking at detached houses in Buckhurst Hill, Chigwell, Loughton & Woodford Greeen for the past 2 years & IMO asking prices are around 10% lower in general than when we began our search. The problem is, as always, the desirable houses are still on for top money, marketed by the agents as though the housing market is stuck in a mid 2004 timewarp. There is no regard to the ceiling price set for a road which is readily revealed by Nethouseprices.

In some cases we have been sent details of houses marketed at £215K above the historical ceiling, & then prices should now be only 90% of that ceiling. And of course I'm talking asking prices. In mid 2004 vendors expected to achieve the asking price, now you should expect AT LEAST 10% off.

So in the case of a house we viewed recently with an asking price of £950K, the ceiling for the road was 735K set in July 2004. Assume 10% drop in market value & a further 10% for negotiation as a minimum means the current ceiling should be £558K, the vendor of the house in question is asking £950K & expects to achieve that. I really hope this guy chases that market down - even if it was the best house in the road!

Edited by volvos60
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My Wife and I are in a similar position, we have been looking for a house in Wanstead/Woodford area, but the vendors just don't want to drop their prices, and all our offers have been rejected. I noticed about a 5-10% reduction over the last 15 months. But one house we saw in Wanstead 5 bed detached in Dec, on for 780k, was reduced to 765k. We went for the viewing, house is occupied by an old dear. Not in great condition but has lots of potential, the house that is. Anyway I get talking to her and although I believe the house in its current condition is not worth more than 600k she is adament and will not take anything lower than 750k. She has 2 daughters who she tells me have told her not to drop the price even though she wants to sell, and move abroad. They could be possibly holding out for some early inheritance, they live somewhere else in the UK. These type of houses do not come on the market very often, and are normally occupied for 30-40 years by same vendor, kids grown up moved out etc. But if the vendors who now occupy the quality family homes with no mortgage are not willing to sell at realistic prices, how is the market going to correct itself?

I've been looking at detached houses in Buckhurst Hill, Chigwell, Loughton & Woodford Greeen for the past 2 years & IMO asking prices are around 10% lower in general than when we began our search. The problem is, as always, the desirable houses are still on for top money, marketed by the agents as though the housing market is stuck in a mid 2004 timewarp. There is no regard to the ceiling price set for a road which is readily revealed by Nethouseprices.

In some cases we have been sent details of houses marketed at £215K above the historical ceiling, & then prices should now be only 90% of that ceiling. And of course I'm talking asking prices. In mid 2004 vendors expected to achieve the asking price, now you should expect AT LEAST 10% off.

So in the case of a house we viewed recently with an asking price of £950K, the ceiling for the road was 735K set in July 2004. Assume 10% drop in market value & a further 10% for negotiation as a minimum means the current ceiling should be £558K, the vendor of the house in question is asking £950K & expects to achieve that. I really hope this guy chases that market down - even if it was the best house in the road!

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My Wife and I are in a similar position, we have been looking for a house in Wanstead/Woodford area, but the vendors just don't want to drop their prices, and all our offers have been rejected. I noticed about a 5-10% reduction over the last 15 months. But one house we saw in Wanstead 5 bed detached in Dec, on for 780k, was reduced to 765k. We went for the viewing, house is occupied by an old dear. Not in great condition but has lots of potential, the house that is. Anyway I get talking to her and although I believe the house in its current condition is not worth more than 600k she is adament and will not take anything lower than 750k. She has 2 daughters who she tells me have told her not to drop the price even though she wants to sell, and move abroad. They could be possibly holding out for some early inheritance, they live somewhere else in the UK. These type of houses do not come on the market very often, and are normally occupied for 30-40 years by same vendor, kids grown up moved out etc. But if the vendors who now occupy the quality family homes with no mortgage are not willing to sell at realistic prices, how is the market going to correct itself?

Houses in the Epping, Loughton, Woodford, Buckhurst Hill, Chigwell are are going to fall very hard. Owners in these areas are dilusional. I would stay clear of this area until the HPC is well under way. The 950K house you are talking about will probably end up going for 400K.

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Houses in the Epping, Loughton, Woodford, Buckhurst Hill, Chigwell are are going to fall very hard. Owners in these areas are dilusional. I would stay clear of this area until the HPC is well under way. The 950K house you are talking about will probably end up going for 400K.

I agree that they are deluding themselves, aided & abetted by local agents who think they completely contol the market. Maybe a few more months of low volume & they'll get the message. The problem is that some have told me they fear telling the vendors thay are aiming too high in case the vendors go to another agent. As you say, these homes could well fall significantly. When you compare Buckhurst, Loughton, Chigwell, etc to other similiar quality areas such as Radlett & Brookmans Park, they begin to look really overpriced. In the end, you can't buck the market.

Edited by volvos60
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"desperately want to buy"

WHY?

I dont get it:

+ Renting is cheaper, and will stay so for a long time,

+ Big capital gains are unlikely for many, many years

+ Capital losses are increasingly likely

ARE YOU desperate to LOSE MONEY?

But not every area outside of London has a rental market offering suitable properties. Plenty of one and two bed flats above the chip shop maybe, but a three bed family home with garden and close to good schools can be much harder to source. Even if one does exist there is rarely any security of tenure as, often, these type of properties are offered to the rental market only whilst the owner goes abroad for a year or some other short term reason.

For instance offering my own area three letter post code to Rightmove brings up 320 3 bed properties for sale but only 9 for rent and of those a decent family would only be interested, at best, in one or two.

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Guest The_Oldie

I agree that they are deluding themselves, aided & abetted by local agents who think they completely contol the market. Maybe a few more months of low volume & they'll get the message. The problem is that some have told me they fear telling the vendors thay are aiming too high in case the vendors go to another agent.

This is what is happening across the country.

I think that the large (PLC) chains of EAs, may be taking the opportunity to shaft their smaller competitors. When the local independent agents are bust, the big boys will lower prices and increase the volumes.

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This is what is happening across the country.

I think that the large (PLC) chains of EAs, may be taking the opportunity to shaft their smaller competitors. When the local independent agents are bust, the big boys will lower prices and increase the volumes.

hmmm, very interesting... <_<

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Houses in the Epping, Loughton, Woodford, Buckhurst Hill, Chigwell are are going to fall very hard. Owners in these areas are dilusional. I would stay clear of this area until the HPC is well under way. The 950K house you are talking about will probably end up going for 400K.

No, No, No. House prices everywhere else will go down but not round here.

The Olympics will save London / Essex house prices. £950K is going to look cheap once the Olympics effect is priced in. :lol:

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I agree that they are deluding themselves, aided & abetted by local agents who think they completely contol the market. Maybe a few more months of low volume & they'll get the message. The problem is that some have told me they fear telling the vendors thay are aiming too high in case the vendors go to another agent. As you say, these homes could well fall significantly. When you compare Buckhurst, Loughton, Chigwell, etc to other similiar quality areas such as Radlett & Brookmans Park, they begin to look really overpriced. In the end, you can't buck the market.

Interesting thread, I'd like to add my 2cents. Firstly, uniquely desireable properties just like sport stars at the top of their game will always command a relatively and indeed an absolutely higher price. "The market" is not ALL houses, it's those that trade. And regardless of the state of player salaries or game attendance, T.Henry will still be able to command top salary for a move to Real or Barcelona. I dont doubt that certain properties will increase in value/desirability, even during a general correction.

Secondly, and this is something that worries me in Ireland, it's not entirely clear to me that we WON'T have a return to something akin to feudalism, with as a prev poster said "95% of population renting from the remaining 5%". (Concentration of economic power among a few has been the norm rather the exception thru-out history). The greater probability is that we'll have a serious downward adjustment in prcies, but there's a chance that we're in a sorta "new paradigm" (sorry). If the religious zeal with which irish people cling to their properties and their perceived"value", the market here may just grind to a long-term stalemate with prices moving around in tiny, stubborn, slow increments. In such a scenario the breakdown of renters/owners may be decided for the next 20+ years. Todays under-25s may never be able to buy property and will in effect be economically cleansed from their own country. Variations on this theme has happened before (unions and govt protectionism virtually expelled an entire generation in the 50s)

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Firstly, uniquely desireable properties just like sport stars at the top of their game will always command a relatively and indeed an absolutely higher price.

The funny thing is... If you get Money Week, the uber-property-bears, they have a property section at the back where they collect some of arguably the most desireable properties in the UK. But strangely IMO, the prices don't seem quite as silly as you would expect.

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Houses in the Epping, Loughton, Woodford, Buckhurst Hill, Chigwell are are going to fall very hard. Owners in these areas are dilusional. I would stay clear of this area until the HPC is well under way. The 950K house you are talking about will probably end up going for 400K.

Woodford... the only tube station name withough any of the letters of the word "Elephant" in it.

Can anyone tell me the only station without any letters of the word "Mackerel"?

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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