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House Prices Fall As Buyers Rush To Sell

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http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=509489&in_page_id=57&ct=5

House prices fall as buyers rush to sell

By Becky Barrow

19 July 2010

Soaring numbers of homeowners are deciding to sell their properties in a move which will trigger a sharp house price fall, a report warns today.

Asking prices have fallen for the first time this year and are predicted to plunge even lower by the end of the year.

The average asking price, currently around £23 ,300 in England and Wales, will drop another £14,000 by December, the report by property website Rightmove said.

Asking prices dropped by 0.6% this month, with the typical seller knocking off £1,435 - the first drop since December.

The report blames the price fall on a rising tide of homeowners deciding to sell. More than 30,000 homes are flooding onto the market each week - almost 50% higher than last July. In London, the number of new sellers is 7% higher than last summer.

But there are too few buyers, according to Rightmove. As a result, the market will be controlled by buyers who will ask for big discounts. The site, which advertises about 90% of all properties for sale, said mortgages are being 'rationed', which is further cutting the number of buyers.

Each week, only 11,000 mortgages are being approved - just a third of the number of properties coming onto the market.

Miles Shipside, commercial director of Rightmove, said: ' Buyers have got the upper hand.'

Meanwhile the number of unsold properties has been rising every month. In January, the average was 3 per estate agent, today it is 77 - the highest in two years.

Since the start of the year, asking prices jumped by about seven per cent, from an average of £221,463 to £236,332. But Mr Shipside said this gain will be 'wiped out' by the end of the year.

He said: 'With agents beginning to choke on a surfeit of new stock, sellers are going to have to price at bargain levels and bullishly promote their properties.'

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Looks like there's a typo in the article - average house prices aren't 23K AFAIK. Still, 14K off by Christmas sounds good. It'll do for a start anyway :D Now, where did I put my big negotiating stick?

Edited by AvidFan

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Lubbly jubbly - scare the sheeple....

The Times isn't taking any risks - minute paragraph tucked away on page 4 today headed "House prices 'will fall"'.

-7% by year end according to article quoting Rightmove - the piece is all of 54 words long.

"Falls were likely because the number of new sellers was outstripping new mortgage approvals by about five to two."

Edited by Mrs Bear

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The reporting of the END of the dead cat bounce.

This is not idle speculation or conjecture or what some twonk in America thinks is going to happen next year.

ITS OVER.

Its like waking up from a nightmare. :o:)<_<

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Miles Shipside, commercial director of Rightmove, said: ' Buyers have got the upper hand.'

but

buyers are rushing to sell.

Doesn't a buyer cease to be a buyer once they have bought? - One asks because those that have bought & have mortgages are usually referred to as 'home owners', which seems rather unfair on the benevolent lender, as well as being an oxymoron.

Or is there a new major crisis on the event horizon?

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Looks like there's a typo in the article - average house prices aren't 23K AFAIK. Still, 14K off by Christmas sounds good. It'll do for a start anyway :D Now, where did I put my big negotiating stick?

Should be hurtling through the false bottom of Q1 09, by Jan 11. :D:D

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I would not get too excited because where are the distressed sellers. For a crash i.e 30% down there needs to be a lot of distressed sellers.

What I predict will happen is what we have all been discussing over the past 12 months. The my house is worth 2007 prices and I am not selling for a penny less.

Also distressed sellers tend to move in to social housing so being removed from the private buyer or rental market. The chancers putting there houses on the market now trying to get top price, if they sell with have to rent or buy another house maybe smaller but it will prop up the bottom.

So we may see 10% down over a period but not 30% because no distressed sellers.

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I would not get too excited because where are the distressed sellers. For a crash i.e 30% down there needs to be a lot of distressed sellers.

What I predict will happen is what we have all been discussing over the past 12 months. The my house is worth 2007 prices and I am not selling for a penny less.

Also distressed sellers tend to move in to social housing so being removed from the private buyer or rental market. The chancers putting there houses on the market now trying to get top price, if they sell with have to rent or buy another house maybe smaller but it will prop up the bottom.

So we may see 10% down over a period but not 30% because no distressed sellers.

Don`t agree, distressed sellers come in all shapes and social classes, many just go home to parents or rent/buy a cheaper place? The point is many people only have a property becuse of HPI, take away that and vast swathes of the country will want out, they are not necessarily distressed (yet) but they will be very keen to cash out now that their house is not a money maker.

The chancers won`t get top price, hence they will not be moving unless repo`d, and won`t be propping up the bottom. The whole rotten edifice is going down, it has started.

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Two million buy The Mail each day. Four million people read it.

Headlines like this change attitudes.

The attitude has already changed the press is only just starting to reflect this.

So we may see 10% down over a period but not 30% because no distressed sellers.

Don't worry the forced sellers are coming in their thousands and it won't stop at just 30%.

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The attitude has already changed the press is only just starting to reflect this.

Don't worry the forced sellers are coming in their thousands and it won't stop at just 30%.

Why are the forced sellers coming in thier thousands. We have just had 1 million plus added toi unemployment over the last 18 months and forced sellers were a spent force after about 8 months.

What has changed for thousands of forced sellers to appear?

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Panic is starting to settle in..

Some people are begining to realise that all the unresolved debt is still there, it hasn't gone away. All the smoke and mirrors has failed to hide the truth.

Their eyes are open wide now as the see the inevitable tsunamie heading towards them, and they realise it might just be tooooo Laaaaate !!

Top enders are shitting their pants right now..

Ajax2001

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I'm getting quite worried for my landlords to be honest. (Funny statement I know)

As many on here know, I rent from parents. They bought the house on an interest only mortgage. My rent is low, and only covers the mortgage while I save up a deposit.

If prices crash - hooray for me, but they'll be in negative equity.

I'm beginning to think I should bail on the house, go rent somewhere else, and let them sell it now. (They would probably struggle to sell it now though)

Afterall, money belonging to parents will eventually find it's way to a child.

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I'm getting quite worried for my landlords to be honest. (Funny statement I know)

As many on here know, I rent from parents. They bought the house on an interest only mortgage. My rent is low, and only covers the mortgage while I save up a deposit.

If prices crash - hooray for me, but they'll be in negative equity.

I'm beginning to think I should bail on the house, go rent somewhere else, and let them sell it now. (They would probably struggle to sell it now though)

Afterall, money belonging to parents will eventually find it's way to a child.

exactly. It's quite a nice way to transfer wealth, free of inheritance tax

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Why are the forced sellers coming in thier thousands. We have just had 1 million plus added toi unemployment over the last 18 months and forced sellers were a spent force after about 8 months.

What has changed for thousands of forced sellers to appear?

I wondered the same thing, but in mitigation consider this.

The Mail today report 30,000 homes a week are "flooding the market".

its likely half a miiion or probably more people are going to loose full time jobs. This is an on going trend already established and its going to get a whole lot worse.

Some amateur landlords are going to cut and run, this is already happening.

1st time buyers wont be buying.

BTL sales which have been a big part of the market will close to dissappear.

Wages have fallen 10% in six months.

Lending may seize up.

Edited by bricor mortis

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Why are the forced sellers coming in thier thousands. We have just had 1 million plus added toi unemployment over the last 18 months and forced sellers were a spent force after about 8 months.

What has changed for thousands of forced sellers to appear?

Takes 3 or four months to work through the savings, then another four or five months maxing out the credit cards, then three months before any real action is taken by the lender and everybody is willing to accept lower payments for 12 months 'until you are back on your feet'.

It's then a case of extend and pretend that it's all going to be ok.

Give it until Easter/End of next financial year. That's going to be bloodbath territory.

Edited by Live Peasant

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Why are the forced sellers coming in thier thousands. We have just had 1 million plus added toi unemployment over the last 18 months and forced sellers were a spent force after about 8 months.

What has changed for thousands of forced sellers to appear?

Go read the Secretly Poor Mumsnet thread.

Thats the tip of the iceberg, exactly the type of must have, gotta have idiots who got us into this mess and fuelled HPI.

They will now reap what they have sewn, it may take a few months, but the trend is now firmly down and will only gather pace.

I reckon 30% on the nice places and 40-50 everything else, before we bottom out, but the majority of that will be over the next 12-18 months.

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Some vendors need to read that. Here's my post on another thread today :

See the Chelmsford thread in the regional forum. Chelmsford has had an awful lot coming over the last 4 months. I can't say which types exactly but general supply here is surging. Reductions are not too bad either. Saw a bungalow in Essex reduced from £240k to £170k in one go a few weeks back.

After London and east midlands (I think) the south east showed the 3rd largest regional drop according to this report. There's nothing special about Essex we are being affected just as everywhere else.

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I would not get too excited because where are the distressed sellers. For a crash i.e 30% down there needs to be a lot of distressed sellers.

What I predict will happen is what we have all been discussing over the past 12 months. The my house is worth 2007 prices and I am not selling for a penny less.

Also distressed sellers tend to move in to social housing so being removed from the private buyer or rental market. The chancers putting there houses on the market now trying to get top price, if they sell with have to rent or buy another house maybe smaller but it will prop up the bottom.

So we may see 10% down over a period but not 30% because no distressed sellers.

Yeah well for me a property in 2000 at 200k, if only inside have be updated, I am sorry my dear but as I am not a sheep I won't pay 400k for it but max 260k..

For your property I will make sure I looked at how much your seller bought it and adjust it with the work which has been done on it since now.. Which means if the man bought it 200k, sold it to you 300k, and taking in account only redecoration has been done (ie no extension)I clearly won't buy your house for 300k but for 250k :)

The chance is lot of people cannot afford their mortgage, divorce or change of location due to their job, and it becomes a time they are desperate or cannot do an other way to the house sold.. at that time they will have to bring down the price knowing they need to get the bank doing a valuation of the house and find a seller able to get a mortgage!!!

Edited by Menie

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Nothing special about Essex? Tell that to the vendors, they think their houses are made of bullion. What's more, over-priced sh'ite is selling, use Property Bee and see for yourself. When I was a lad these properties were never rated at a parallel to London prices as many are now, it's outrageous, it's almost as bad as the second homes hpi in Cornish villages.

I agree, Essex is stupidly over priced! Especially places like Brentwood billericay central Chelmsford and as you say Southend. That's before you get into the madness of near London, Epping, ongar etc. There are some cheaper areas for example if you go about 10miles north of Chelmsford into Braintree you can get a 3 bed semi for the same price as a small flat. It's madness.

Don't worry prices will fall here along with everywhere else. London included.

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  • 261 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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