Asking Prices At 2007 Prices

[TheCountOfNowhere]

If the government had a brain they would act now to stop any resumption of the housing bubble, it's probably their only chance to manage this mess in any shape of fashion.

[Alfie Moon]

Right now there are so few completions the market could honestly be anywhere, noone really knows.

No, the ongoing collapse in completions and Estate Agents stockpiling SSTC properties stuck in chains in the context of 0.5% Base Rate and galloping unemployment, worst recession since the 1930s, etc. shows just how fragile the so called 'stability' or 'recovery' for the more optimistic, is in reality. Until Estate Agents and vendors start pushing down asking and selling prices completions will remain dismally low. The dead cat bounce is gasping its last breath, or is dead already.

[monty1080]

asking prices up

Record price on this street ? Also new to the market. .

http://www.rightmove.co.uk/property-for-sa...es%26index%3D10

Couldn't quite believe it when I saw this in an EAs window this w/e.

FYI the last property on this street was on for £400k 10 months ago.

Madness I tell thee.

[CasualBear]

Record price on this street ? Also new to the market. .

http://www.rightmove.co.uk/property-for-sa...es%26index%3D10

Couldn't quite believe it when I saw this in an EAs window this w/e.

FYI the last property on this street was on for £400k 10 months ago.

Madness I tell thee.

I use to live on pages walk just before the dotcom crash when I was newly graduated. Not a great area as you have to walk over the bricklayers arms roundabout to get anywhere central, which is a horrific experience. Elephant and castle tube is too far away. The other way you have the old kent road. That someone can be asking half a mil for a house there is indeed madness.

[monty1080]

I use to live on pages walk just before the dotcom crash when I was newly graduated. Not a great area as you have to walk over the bricklayers arms roundabout to get anywhere central, which is a horrific experience. Elephant and castle tube is too far away. The other way you have the old kent road. That someone can be asking half a mil for a house there is indeed madness.

I live not far (250m) from there in a 3 (not 2) bed terrace with a big garden, closer to the river and it wasn't half a mill ,I can tell you. Pages walk is a little smarter now, but still ! I agree about the Bricklayers Arms foot tunnel though scaaaaarrryyy.

[wealthy]

Interesting that people are suggesting they are quite smart for picking up an inflated priced house at the right time to beat the "global dash for assets" when you can still pick up 1/2 an acre and a cottage in france for about 20K

Think I'll hold fire for now. Don't fancy paying 10x more for it than many other places just because this is the UK

[wickywackywoo]

I read somewhere recently that UK bank losses are about 1/2 through, US losses about a 1/3 of the way through and European banks have barely started.

Given the size of this bubble and the massive efforts of the Goverment to stall the crash, it's going to take years before house prices become sensible again.

The people rushing in and buying now are muppets, prices will start falling again this winter. It takes a long time to turn sentiment around but I reckon that by the end of next year (maybe sooner), sentiment will have well and truly turned.

I see no real chance of massive inflation (not the type that counts, wage inflation). Unemployment is rising and the Government are still allowing in foreign workers. The average Brit is seeing his income/employment prospects reduce. What we will see over coming years is the cost of living rocket and wages fail to keep pace (already seen it to some extent). House prices are always a long term function of wages - and hence will fall.

People earning £20k per year cannot afford to spend £250k on a flat. Houses prices will fall at least another 30% and quite possibly 50% in some cases - but it will take years. You need to be patient.

The only thing that could possibly prevent nominal house prices falling is massive wage inflation - ain't gonna happen.

[Sibley's Love Child]

I live not far (250m) from there in a 3 (not 2) bed terrace with a big garden, closer to the river and it wasn't half a mill ,I can tell you. Pages walk is a little smarter now, but still ! I agree about the Bricklayers Arms foot tunnel though scaaaaarrryyy.

Unfortunately, I live 250m in the wrong direction (one word clue; Aylesbury)...i've mentioned it in the past but a one-bed flat in my block went for nearly 200k at peak. Ludicrous. Then again (re: above listing) half a mill for a house betwixt Tower Bridge Rd & Old Kent Road - ha ha.

[manbearpig]

After reading this thread in full, I've come to the following conclusion.

1. Those that have bought already believe prices are going up/stabalising, due to the 'dash for the assets', inflation etc..

2. Those that have not bought yet think prices are falling further, due to employment, tax increases, budget deficit etc..

IMO Gordo seems to have done it, and house prices are going up on average. Prices in the short term would shoot up if lending was relaxed, but over the medium term, things look pretty bad, or good, depending on your bias.

Either buy now, and try to get a deal at as close to Feb09 prices as possible, which will be very hard in the current market, or wait another 2 years, and see what happens.

This bull run might last until next year, wiping out all the falls altogather.

[Guest_flaps_*]

Interesting that people are suggesting they are quite smart for picking up an inflated priced house at the right time to beat the "global dash for assets" when you can still pick up 1/2 an acre and a cottage in france for about 20K

Think I'll hold fire for now. Don't fancy paying 10x more for it than many other places just because this is the UK

Anywhere nice? Should I get made redundant it sounds a far more pleasant proposition to buy one for cash and sit out the main crash in the UK over there in the sunshine than here!

[wealthy]

Anywhere nice? Should I get made redundant it sounds a far more pleasant proposition to buy one for cash and sit out the main crash in the UK over there in the sunshine than here!

Plenty requiring renovation around normandy

You can buy a fully renovated place for around 70K, often you can buy another couple of acres for around 5k

If you are worrying about impending doom that sounds like a better proposition than spunking your cash on a 3 bed semi for 300k!

[wealthy]

Either buy now, and try to get a deal at as close to Feb09 prices as possible, which will be very hard in the current market, or wait another 2 years, and see what happens.

Or just get out of the UK - this is seeming like a better proposition

[Sibley's Love Child]

[quote name='manbearpig' date='Jul 27 2009, 03:54 PM' post='2036553'

Either buy now, and try to get a deal at as close to Feb09 prices as possible, which will be very hard in the current market, or wait another 2 years, and see what happens.

I think i'll bide my time; i'm in no rush to sign my life away. Tick tock.

[wickywackywoo]

Anywhere nice? Should I get made redundant it sounds a far more pleasant proposition to buy one for cash and sit out the main crash in the UK over there in the sunshine than here!

1.5 acres and three bedrooms £71k

I'm seriously thinking of buying something over there with a view to spending more and more time in France as I get older. Way better quality of life than this sh1t hole.

20k will only get you a renovation project which will probably end up costing you £70k by the time it's finished (or more).

I need to look in more detail at the equivalent of council tax etc though.

[Turnbull2000]

Sellers are still stubbornly sticking to 2007 peak prices where I'm looking, despite many being on the market for over a year. People are simply refusing to budge, and are encouraged to do so as the local media (in particular) have relentlessly called the bottom ever since prices began to wobble. There's an unshakeable belief that the "recovery" is just around the corner and prices will resume an upwards march.

[Sybil13]

After reading this thread in full, I've come to the following conclusion.

1. Those that have bought already believe prices are going up/stabalising, due to the 'dash for the assets', inflation etc..

2. Those that have not bought yet think prices are falling further, due to employment, tax increases, budget deficit etc..

IMO Gordo seems to have done it, and house prices are going up on average. Prices in the short term would shoot up if lending was relaxed, but over the medium term, things look pretty bad, or good, depending on your bias.

Either buy now, and try to get a deal at as close to Feb09 prices as possible, which will be very hard in the current market, or wait another 2 years, and see what happens.

This bull run might last until next year, wiping out all the falls altogather.

I can hear what you are saying but I think the % of properties that are actually selling is so low this means people are basing the so called recovery on a very low number of completions , whilst a large volume of overvalued properties are just not selling. RM put the properties not moving on EA's books as being "stubbornly stuck at70%". Eventually, with the "green shoots" "spring bounce" etc behind us, sellers are going to have to consider if they want to sell , just as EA's are going to have to consider if they want to stay in business!

It is hard to get to the FACTS but there have been a lot of articles that have implied that property chains are breaking down all the time due to people being unable to get funding or valuations coming in well below peak.

So as I say, you might be right, but interesting to consider these articles below:

Independent today:

Figures from the Bank of England yesterday confirmed that the banks and building societies remain reluctant to lend to any but the most secure of businesses and home buyers. Mortgage approvals barely improved during May, remaining stuck at a little over 43,000 some way above the nadir of 27,000 last winter, but under half of their normal level. Analysts at Capital Economics said the figures were "consistent with house prices falling at double-digit annual rates".

July 24, 2009

Mortgage problems stop a tenth of home sales

Almost one in ten home sales falls through because buyers cannot obtain finance, a survey of members of the Royal Institution of Chartered Surveyors (RICS) carried out for The Times has found.

Ms Knight BBA:

"also worth noting that the only people lending are banks", Ms Knight added.

"Building societies can't do it due to their business model and they can't get access to funds as easily."

It was also clear that many borrowers were becoming "stuck in chains" when trying to buy somewhere to live, she said, meaning banks were "granting more mortgages than are being taken up".

Last week Moneyweek:

The number of homes recorded so far as having being sold in May is just over 14,000. Down from 63,000 in May last year and 106,000 in 2007.

June 2009 :

UK house prices (asking) have stopped their recent 'dead cat bounce' according to Miles Shipside and his team at Rightmove. Estate agents now have on average seventy properties each on their books, and are only selling ten per month according to RICS...

However, this RICS contention is not supported by recorded data. With only 35,000 property sales a month, according to Land Registry, and the head count of agents being circa the same this would suggest that agents are in fact only selling on average one property per month.

Edited July 27, 2009 by Sybil13

[copper crutch]

I have taken a break from this website after becoming a bull for a couple of months and I have started tentatively to look for house again. However, I could not believe that vendors are now pricing their properties at peak 2007 plus around �20k for good measure!!! My elderly aunt in Leamington Spa has also sold her detached house for asking price in five days, she stated that she was "inundated" with offers. Where the hell is the money coming from? This is surely complete and utter lunacy. I am now out of this market until the new year. If it does not improve - I'm out of this country for good! Utter lunacy!

Where does the money come from it does make you wonder, prices none the less are rising again and at a fast rate off knots, well 10.4% rise for Edinburgh in one month is pretty big.

Vendors are upping the ante again and sales are going through, solicitors and surveyors are re hiring staff they paid off at the peak of the slump which was the end of last year, sinse April there has been a steady increase in both sales and prices, we are not at 2007 price levels yet, but good quality properties are selling at around 5% down from peak bubble :angry:

http://www.ros.gov.uk/public/news/press_re...flash/28day.pdf

[MOP]

Where does the money come from it does make you wonder, prices none the less are rising again and at a fast rate off knots, well 10.4% rise for Edinburgh in one month is pretty big.

Vendors are upping the ante again and sales are going through, solicitors and surveyors are re hiring staff they paid off at the peak of the slump which was the end of last year, sinse April there has been a steady increase in both sales and prices, we are not at 2007 price levels yet, but good quality properties are selling at around 5% down from peak bubble :angry:

http://www.ros.gov.uk/public/news/press_re...flash/28day.pdf

Have they still not kicked you out of the Scotland sub-forum yet?

Stop trolling FFS!

[eric pebble]

I only know of two people who have bought houses in the last 4 months:

1. Lived mortgage free in house. Decided to sell, bought £350,000 house and got a £100,000 mortgage

2. Recently came into a huge inheritance. Bought flat in North London for cash.

These are hardly typical purchases. I know of nobody else who has sold or bought. I have two colleagues who have had their houses on the market now for over 2 years. Neither has dropped their prices and both have decided that if they sell all fine and good but if they dont they will continue to live in their houses. Neither would contemplate dropping their prices and they are unlikely to become forced sellers.

We seem to be in a stalemate at the moment. I believe prices may actually continue to rise until after the next election. Then will come the tax rises, interest rate rises and HPC will be back on.

I know of at least 7 people who have not sold despite properties being on sale for 2 years+....

[Bloo Loo]

Poor couple up the road to where I was before, sold 12 June STC.

just thought Id check rightmove....you guessed it...available again (19/7)

this house has dropped from £280K to what i beleive was £220K.

Sad on the couple, but its another broken chain as they were both moving to separate new homes.

Edited July 27, 2009 by Bloo Loo

[the flying pig]

Where does the money come from it does make you wonder...

Edinburgh's different.

[Bloo Loo]

Edinburgh's different.

not as different as Maidstone, what with its secret river, bridge and troll.

[Our day will come]

I too am finding this all too depressing. I can't understand why the prices seem to be rising and am beginning to (slightly) question whether my logic is flawed.

But the fundamentals still do not add up...that said if we get to Spring next year still rising I will bite the bullet and buy a place.

Against all my beliefs, but I can't wait too much longer.

I am still holding out hope for 2001 prices to return, but that seems rather a forlorn wish now.

[Bloo Loo]

I too am finding this all too depressing. I can't understand why the prices seem to be rising and am beginning to (slightly) question whether my logic is flawed.

But the fundamentals still do not add up...that said if we get to Spring next year still rising I will bite the bullet and buy a place.

Against all my beliefs, but I can't wait too much longer.

I am still holding out hope for 2001 prices to return, but that seems rather a forlorn wish now.

dont worry, its finance, and every financial bubble in history, once burst, provides a second and even a third opportunity for people to lose money.

[Our day will come]

dont worry, its finance, and every financial bubble in history, once burst, provides a second and even a third opportunity for people to lose money.

That's what logic tells us, but there seems to be no logic to this anymore.

I didn't actually believe the Government could have an effect, but they clearly have. And that scares me.