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MrFlibble

A Third Of Properties For Sale See Price Reduction

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http://www.telegraph.co.uk/finance/personalfinance/7924254/A-third-of-properties-for-sale-see-price-reduction.html

A third of all properties for sale have seen their prices reduced amid an uncertain outlook for the housing market, a new survey suggests.

The properties have seen their values cut at least once since they were first listed on the market, according to the survey by property website Zoopla.

The highest average price reductions were in Rotherham, Manchester and Barnsley, where average asking prices were discounted by 7.1 per cent.

It is the equivalent of a £9,500 drop in asking prices in Rotherham, a £11,400 drop in Manchester and a £9,000 drop in Barnsley.

Percentage price reductions have been smaller in the south of England, with average asking prices in Chelmsford and Brighton both having been reduced by 5.1 per cent, or £18,800 and £19,900 respectively.

Nicholas Leeming, Commercial Director of Zoopla.co.uk, said, “Sellers across the country are certainly feeling the heat this summer as the recovery has slowed and the market direction is uncertain.

“More and more sellers are cautiously reducing asking prices in a bid to attract buyers and lock in the house price gains of the past 16 months. But Britain is not one uniform housing market and smaller reductions are clearly evident in some locations in the south of England where the outlook for employment and economic growth is brighter. In a buyers’ market, astute house hunters will be on the lookout for properties with the biggest reductions in the hope of picking up a bargain.”

The jig is up...

Edited by MrFlibble

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I came across a lady this week who has had her place on the market for £170k since February, about £25k more than is owed on the mortgage.

Time just ran out - possession order made with the original asking price still in place. She blames the estate agents.

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I came across a lady this week who has had her place on the market for £170k since February, about £25k more than is owed on the mortgage.

Time just ran out - possession order made with the original asking price still in place. She blames the estate agents.

And you didn't make her an offer? You are no gentleman. :)

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Most of the reductions round my way are pathetic ones like £325k reduced from £330k, with deluded vendors thinking that will make all the difference!

Where's your way? 5 - 10% is about right for Chelmsford. Although multiple reductions sometimes add up to more. I did see a flat reduced from 120K to 95k. 21% reduction! Lovely.

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I'm surprised it's as few as 1/3

I suspect that if one considers all the re-listings and changes of EA it may be higher. 2/3 selling with no reduction in asking price is a prospect I find depressing.

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I'm surprised it's as few as 1/3

I suspect that if one considers all the re-listings and changes of EA it may be higher. 2/3 selling with no reduction in asking price is a prospect I find depressing.

Maybe I've misread it, but I took it as 2/3 of listings currently have no reduction - which is very different... I would say that they are the 2/3rds that aren't selling...

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2/3 selling with no reduction in asking price is a prospect I find depressing.

It doesn't say that. It says 1/3 of properties "for sale" have had price reductions. You are assuming that the 2/3 of properties still for sale will sell without a price cut. They won't.

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I'm surprised it's as few as 1/3

I suspect that if one considers all the re-listings and changes of EA it may be higher. 2/3 selling with no reduction in asking price is a prospect I find depressing.

Who says those 2/3 are selling? Besides some may be more (relatively) reasonably priced to begin with.

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Ok, fair enough

I suppose you (both) mean that at any one time only 1/3 are showing reductions, but as these sell and more houses come on the market then many of the other 2/3 will in time be reduced. Makes sense.

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I came across a lady this week who has had her place on the market for £170k since February, about £25k more than is owed on the mortgage.

Time just ran out - possession order made with the original asking price still in place. She blames the estate agents.

Actually to my mind that's not too far off the mark, assuming any buyer will ask for a 10% reduction. Saying that the extra 10K that she should have gone down makes a big difference on a house of that price. The other issue is whether it was priced to sell relative to the local market. If she was 50K under comparable properties ...

I don't know the details of repos, but what do you have to gain from selling a place below the amount you need to cover the mortgage ? Do they still pursue you afterwards for the outstanding after they repo or do they not ? If so is it just the difference between maintaining a good credit record ?

In my area (South Oxfordshire) no evidence of recent reductions. Huge wave of property came on the market before the budget, as well as reductions. Now nothing much has happened since, either in the way of reductions or sales.

My view is that Haliwide will continue to go down for the next couple of months as the earlier price reductions feed into approvals. I think volume will decrease significantly.

Suspect we need the spending review to take place before the next wave of reductions hit.

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I don't know the details of repos, but what do you have to gain from selling a place below the amount you need to cover the mortgage ? Do they still pursue you afterwards for the outstanding after they repo or do they not ? If so is it just the difference between maintaining a good credit record ?

Effectively, when you sell (or even remortgage) you have to clear the charges on the property, including equitable charges. So in a repo situation, the lender can veto anything that doesn't clear off its loan + no sane buyer would buy a place with charges outstanding.

If the property sells for less than the charged debt, the creditors can get judgments equalling the shortfalls and pursue those balances for years and years, even charging a debtor's next property. Not unusual to see shortfall balances from the '90s bust being pursued today.

One thing that debtors are constantly told is that if the creditor takes charge of the sale the property will realise peanuts. Judges say it every time. But nobody will say, Hang on - maybe peanuts is exactly what the market will allow.

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Effectively, when you sell (or even remortgage) you have to clear the charges on the property, including equitable charges. So in a repo situation, the lender can veto anything that doesn't clear off its loan + no sane buyer would buy a place with charges outstanding.

If the property sells for less than the charged debt, the creditors can get judgments equalling the shortfalls and pursue those balances for years and years, even charging a debtor's next property. Not unusual to see shortfall balances from the '90s bust being pursued today.

One thing that debtors are constantly told is that if the creditor takes charge of the sale the property will realise peanuts. Judges say it every time. But nobody will say, Hang on - maybe peanuts is exactly what the market will allow.

OK - thanks for the info - much appreciated.

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I'd agree with the OP's sentiment - in Newcastle, of all the properties I've been watching on Rightmove, approx 1/3 have decreased their asking prices anywhere between 0.1 and 20% with none of note increasing their price. The prices of the remaining 2/3 are flat.

What I think is important tho is a slowly increasing number of people putting their properties on the market - can only be so long before the metaphorical dam bursts. Cracks are already showing but not quite there yet...

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Top of my rightmove search area today is this one. Property bee says this one is dropping at around £75K a month.

History

date event

04 August 2010 * Price changed: from 'Guide Price £625,000' to 'Guide Price £550,000

19 June 2010 * Price changed: from 'Guide Price £700,000' to 'Guide Price £625,000' [Found by n/a]

28 May 2010 * Initial entry found.

http://www.rightmove.co.uk/property-for-sale/property-26130340.html

I put an asking price offer on a property this week (although I specified a bit more of the available land that they were including) and they don't even bother getting back to me.

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  • 143 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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