The State Of The Market

[lets get it right]

Since the last time I threw my leg over my bike and cycled up to my local Tesco Express - about a week ago - two houses have come on the market and both have Sold signs outside. I didn't even get to see the For Sale signs.

What the feck is going on? One might well ask.

Although there isn't much on the market, most of what does come on the market is selling in days. Which gives one the impression of a feverish market. Anyone living around here who is not a visitor to this site (that's everyone except one person, me) must be under the impression that the market is almost in a state of frenzy again.

We seem to have reached a strange place - there is not much on the market, prices are ridiculous, but whatever comes on the market sells at once. No wonder nearly everyone in the country thinks the housing market can't go down.

I realise it's different in other parts of the country, but the areas I watch, which is pretty much the whole of the South, the market is nuts.

Despite all the talk of average wages of 12k etc that you get about Cornwall, despite the expectation that slower volumes of sales in the South East would impact the market in the South West - a chalet bungalow I have been watching (saw the plot of land for sale last year, thought about it, thought it was too expensive, had a look when on holiday last Summer and someone had bought it and had started building) is now on the market for 450k. Nowhere special - nice enough - with the now traditional 2 bedrooms about 11 x 9 and two more 9 x 7 ... so not a big place by any stretch of the imagination. 450k and I bet is sells as soon as the sun comes out and people start dreaming of retiring to the West Country again.

[Lock and load]

How much was the plot up for?

[repetitive bleats]

i can see 9 For Sale signs outside houses (converted into flats) from one of my lounge windows (so thats just up the road - there is more down the road). There are also quite a few To Let and one sold. i could definitely see more signs further up the road if it was daylight. they have been multiplying like rabbits since new year.

[spongeh]

That not happening round here.

Rightmove search lists 94 properties with 9 SSTC for my area.

More specifically my street has 3 empty properties and two that have given up selling.

1st house on corner

for sale @ £400,000, then reduced to £375,000, then reduced to £350,000. They then tried renting it @ £1200, then £1100, then £999 then £850 and finally managed to let it out at £800 .... the tennats moved out 6 months later and house came back on the market at £1100 and is currently at £965. We assume the landlord tried to up the rent and the tenants told him where to go, currently unlet since October 2009

2nd house on oposite corner to 1st

They've bought a new house, but dont want to rent and can't sell it in the market.

3rd house next door to 1st

Chap split up with his wife last year, she and the 3 kids got a nice council house down the road ... they've got back together and decided the council house is cheaper so they want to sell the main house and pocket the money. On the market 4 months.

4th house, our rented property, oposite 3rd and next door but 1 to 2nd

They've emigrated to austrailia, house was finally reduced to £220,000 and up for rent at the same time when we found it. They've given up selling untill the market picks up.

5th house, next door

She tried selling 2008, was finally reduced to £220,000 when she gave up. Wants to live in a caravan on her daughters caravan park, but will not sell the house for less than she thinks its worth as she needs all the money she can get for her retirement .... her house is her pension after all.

[Spoony]

I wouldn't worry about it. Let the stupid debt slaves buy at these silly prices. I am starting to think I don't care it if takes 10 years until housing becomes fair value again. I will either carry on renting or buy something abroad and /or emigrate.

[Spoony]

Chap split up with his wife last year, she and the 3 kids got a nice council house down the road ... they've got back together and decided the council house is cheaper so they want to sell the main house and pocket the money. On the market 4 months.

I bet they won't tell the council they got back together and 'live together apart' otherwise they will lose the council house. I know lots of people that 'split up' just so the woman could take the kids and claim homeless to the council so they got a council house. Then they could sell their overpriced house that they stretched to buy and got into debt over. Then the man movs into the counci lhouse. This situation has been created by the Labour government and Brown encouraged by their tax and benefit system

[Muskoka]

Don't despair. Are you using Property Bee? I'm in the south east and over the last couple of weeks, there are a ton of new properties coming to market & LOADS reducing prices and becoming re-available. Its looking good from here!

[Lagerkhan]

As the idiots say location location location.

This must be regional. I live in the Thames Valley and tbh nothing has changed. I'd estimate that prices are 5% off peak now. Supply is limited but growing steadily and those with cash are spunking their wad all over the property sector. Flats, houses and any other old shite are still going at near asking price in days. It's as if the mania never died. However, there will come a point where this activity eats itself. Supply cannot be met by rich boomers trading their top property trumps. Personally though the killer blow would be IR rate rises. Even in overpriced SE you can achieve more for your cash by buying a flat than you can by sticking the cash in ISAs etc (Yes I know voids etc etc etc but people are dimmer than a 40W eco bulb).

Unfortunately I see no IR rises.

[Tonkers]

Don't despair. Are you using Property Bee? I'm in the south east and over the last couple of weeks, there are a ton of new properties coming to market & LOADS reducing prices and becoming re-available. Its looking good from here!

That London would crash heavier and faster I think is on the cards.

[@contradevian]

That London would crash heavier and faster I think is on the cards.

Hmm but we have been saying this an awful long time methinks. I don't any of us could have predicted the amount of assistance, to support the market, zirp and QE for example.

[Jason]

Wasn't there a website where you can see the number of houses on the market and how this has changed over time?

[grey shark]

Hmm but we have been saying this an awful long time methinks. I don't any of us could have predicted the amount of assistance, to support the market, zirp and QE for example.

So true , it's not a free market anymore just totally rigged and manipulated , for those that really understand the mechanics of the housing market we can just see it for the great big f/ing LIE that it is but unfortunately those who do understand it are the minority.