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Homeowners Avoid Selling Up Amid Dwindling Supplies Of Houses Available To Buy

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http://www.timesonline.co.uk/tol/money/pro...icle6841949.ece

Fewer homeowners are putting their properties on the market, despite a reported rise in average houses prices, as they struggle to find decent alternative homes to buy.

Rightmove, the property search website, reports that, for every eight homes now put up for sale, the equivalent of ten are being sold, or are being withdrawn by sellers who are unable to secure the few good homes they could buy.

The website reveals today that average asking prices are now just 1.5 per cent lower than a year ago, at £223,996, after jumping 0.6 per cent in the month to September 12.

Agents, who reported a mixed summer, albeit one that was better than expected, have been waiting to assess the mood of the market this month, traditionally a busy one for sales. They feared that prices, which have been reported as rising for months, would begin to slide if demand proved weak.

Instead, buyers have snapped up the dwindling number of homes on the market, leaving the average number of unsold properties at each estate agency branch at 69, the lowest for 18 months.

ITV considers Fincham as compromise candidate Miles Shipside, commercial director of Rightmove, said: “Confidence is up, stock is down and the number of people searching is high.â€

Many of those buying are cash-rich investors and do not have a home that they need to sell in order to buy. The high demand — which has led to bidding wars and gazumping, in a frenzy that one Rightmove-registered agent has described as “awesome†— has prompted many sellers to demand more money for their homes.

After months of rising prices, many sellers believe that the bottom of the market has passed and are willing to withdraw their houses from sale to wait for a better price.

Yet many of those who would willingly pay up to secure a new home are struggling, as lenders continue to thwart their ambitions with demands for deposits of 40 per cent or more for a competitive deal.

Rightmove has accused lenders of competing to “cherry-pick the cash-rich†and warns that it could take ten years for the banking system to return to normality.

Mr Shipside said: “Many aspiring sellers could face years trapped in their homes until values rise enough for them to join the equity-rich club.â€

Rightmove’s survey of asking prices reveals that all is not equal across the country. Asking prices remain substantially lower than a year ago in the North, North West, Yorkshire, East and West Midlands, Wales and South West. In all these regions, asking prices are now lower than a month ago, despite reputedly improved sentiment.

Of course the banks want to cherry pick the cash rich, they are seeing that house prices are likely to move only one way and it ain't up. They want the cash buyer to take the loss not them. 40% is a nice cushion for the bank and if the borrower gets into trouble they should be able to recover there money.

I like how values need to increase for people to join the equity rich club, the fact that paying down your get can create equity is lost on them.

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If the EA give people insane valuations though (135k for the man over the road) then why wouldn't people put their housse for sale?

The false expectation of huge price tags won't be met... but the EA will have got them to commit to sell with a HIP and a PIQ by then.

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Atm, many have the option not to sell. How long will that option be available to them? Those who think they are being clever by not selling may find in 12 months that theycan't sell AND can't stay put either.

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Atm, many have the option not to sell. How long will that option be available to them? Those who think they are being clever by not selling may find in 12 months that theycan't sell AND can't stay put either.

The largest nemesis for any housing bubble is unemployment. People who have no income pay no mortgage.

The Brown fix is wearing off fast.

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The largest nemesis for any housing bubble is unemployment. People who have no income pay no mortgage.

The Brown fix is wearing off fast.

Exactly and with 20'% public sector cuts around the corner, unemployment is only going in one direction.

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If the EA give people insane valuations though (135k for the man over the road) then why wouldn't people put their housse for sale?

The false expectation of huge price tags won't be met... but the EA will have got them to commit to sell with a HIP and a PIQ by then.

50% of new updates of prices from GLOBIX in my area of Yorks shows a reduction, The total number of properties for sale has risen in the last month by 15% as people as encouraged to try and sell by the headline news of house prices rising. A lot of the new properties are empty or no chain, so a lot of people are wanting to offload property.

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I read a free London paper the other day which had a wonderful piece about the shortage of property for sale in London and that prices in some areas are back to peak prices. Interestingly, their star witness, sorry interviewee, was head of an Estate Agent.

Meanwhile, back in the real world....

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Cash-rich buyers? Piffle

There are waves of graduates and school-leavers entering the housing market with money to burn which will support the market ;)

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http://www.timesonline.co.uk/tol/money/pro...icle6841949.ece

Of course the banks want to cherry pick the cash rich, they are seeing that house prices are likely to move only one way and it ain't up. They want the cash buyer to take the loss not them. 40% is a nice cushion for the bank and if the borrower gets into trouble they should be able to recover there money.

I like how values need to increase for people to join the equity rich club, the fact that paying down your get can create equity is lost on them.

And so banks should be careful with loan to asset value. Recklessness in the past has got us where we are now. It also menas that values have to be realstic.

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The largest nemesis for any housing bubble is unemployment. People who have no income pay no mortgage.

The Brown fix is wearing off fast.

Indeed RB, but isn't it fascinating to watch the spinning?

It is worse than priestcraft, but so fascinating.

Harness the power of collective denial & watch where it leads; & why not, this is - sorry, was, the miracle economy

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Of course the banks want to cherry pick the cash rich...

I should hope so, too! I want the bank(s) that I have my savings with to lend out my hard-earned money to the safest borrowers. Why would they do otherwise and why would we expect them to? The banks want to build up their reserves and improve their credit ratings by reducing their riskier portion of lending; I as depositor want risk-free saving (after all, the interest they pay suggests an extremely low level of risk.).

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Guest happy?
The largest nemesis for any housing bubble is unemployment. People who have no income pay no mortgage.

The Brown fix is wearing off fast.

Nope, the largest nemesis has to be inability to service the debt - unemployment can be a big factor in this but full employment and rising interest rates will just as quickly make it all go pop.

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Atm, many have the option not to sell. How long will that option be available to them? Those who think they are being clever by not selling may find in 12 months that theycan't sell AND can't stay put either.

It's not brought up on here often but I suspect there are many in the same position as myself who feel "trapped" on the ridiculously low SVR of Lloyds, C&G, Nationwide & HBOS. I'm currently paying 2.5% interest. Any move will likely see that doubling.

Edited by Matt Bear

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I think you've all missed the really important statement in the comments section:

William Ponsonby-Smythe (made up name) wrote:

Indeed, just comes back to supply and demand. Many people don't need to sell just forces prices up. Can see that bidding wars and gazumping coming back now as well. Just a few roads down from us i heard their places had gone to sealed bids and achieved more than listed price. Back to normal then.

Isn't "return to normal" the key indicator of a bull trap?

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Mr Shipside said: “Many aspiring sellers could face years trapped in their homes until values rise enough for them to join the equity-rich club.â€

My heart bleeds for them! by the way Mr Shipside, if you have not noticed yet, your so called equity-rich club has already gone bust :lol:

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But for example if someone does not pay their mortgage for a year and still the bank does nothing except send letters then all that happens is the debt builds - but will be cancelled out when prices recover. I know someone who has not paid their mortgage for a year and yes the bank has done nothing. The government can stop the banks causing distressed sales - thay are doing it now, why should this change?

the debt will only be cancelled when prices recover because non paying debtors will be hoofed out and the banks will sell the property. Not much point in banks going through reposession now, swamping the market will seriously damage their books. Besides, how many places are now worth less than the debt on the banks books? quite a few me thinks.

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the debt will only be cancelled when prices recover because non paying debtors will be hoofed out and the banks will sell the property. Not much point in banks going through reposession now, swamping the market will seriously damage their books. Besides, how many places are now worth less than the debt on the banks books? quite a few me thinks.

Also, prices aren't going to recover.

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Also, prices aren't going to recover.

no, I don't think that they will either, atleast not for a generation or so by which time this mess will have been largely forgotten.

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the uk housing market is like a game of musical chairs. When the good times stopped, so did the music. Most people are going to sit on their chairs until something forces them off. The high rate of sales before, regardless of the cause, was just all the party goers with money moving from one chair to another.

what we'll see now is the true face of the party, the ugly cellulite of the hags that impressed us with their tiiits, as they sit their on their chair, THEIR CHAIR, not yours. the chairs are a limited commodity, most people have to use stools or other types of feacies.

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What I don't understand is why the cash rich should be over paying to buy a house.

Usually, they didn't become case rich by being stupid.

tim

Trying to hedge against inflation. What else are you going to do with your cash with the prospect of inflation and possibly even negative interest rates on savings?

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