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Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

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Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

Similar anecdotal here, work collegue reported house (purchased for high eighties in 2006, and valued over 100K in 2007) was valued on this weekend past at about 80K (or similar).

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Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

The real shock will come when they reduce and your friends realise that it's likely to sell for 91% of this.

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Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

Help them in their hour of need

http://www.bluemountain.com/display.pd?prodnum=3149410&path=35037

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Similar anecdotal here, work collegue reported house (purchased for high eighties in 2006, and valued over 100K in 2007) was valued on this weekend past at about 80K (or similar).

80k for a house? jeebus, does it house dolls made of clothes pegs and string?

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80k for a house? jeebus, does it house dolls made of clothes pegs and string?

We don't all live the beutiful south you know. 80K to 100K for 2 bed terrace have been the norm in the completely average non-aspirational Manchester areas for yonks, property bee is now showing 3 bedroom varieties of the terrace heading into this territory.

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We don't all live the beutiful south you know. 80K to 100K for 2 bed terrace have been the norm in the completely average non-aspirational Manchester areas for yonks, property bee is now showing 3 bedroom varieties of the terrace heading into this territory.

In parts of south Wales, we now have a selection of 2 bed terraces for sale for under £40,000.

And the BTL'ers no longer seem to be snapping them up.

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In parts of south Wales, we now have a selection of 2 bed terraces for sale for under £40,000.

And the BTL'ers no longer seem to be snapping them up.

Ah, whither the BTLers? :lol:

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In parts of south Wales, we now have a selection of 2 bed terraces for sale for under £40,000.

And the BTL'ers no longer seem to be snapping them up.

maybe the sticks in vases weren't up to scratch?

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Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

Factor in the stamp duty they paid for it (1-4%) and then the agency fees to sell it (1-3%) and then the stamp duty on their new home (1-4%) ..

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Factor in the stamp duty they paid for it (1-4%) and then the agency fees to sell it (1-3%) and then the stamp duty on their new home (1-4%) ..

and the 10%+ inflation we've had since 07.

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Guest The Relaxation Suite

Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

I know someone who is trying to sell his semi in the shires. Three bed, poor internal condition (they are quite old), garden gone to seed, no garage. It went on the market in 2008 for 225k with no interest and was taken off after a few months. It then went back on the market in 2009 at 235k with the predictable response of no interest whatsoever and came off the market. It then went back on the market in 2010 for 225k again, only then his luck ran out because an identical semi in much better condition just three streets away came on the market for 210k. So then he drops the price to 210k. Still not sold, and neither has the one in excellent condition, because neither is worth more than 150k and everyone knows it.

His mistake was his greed back in 2009 when he put it back on the market with a 10k increase. If he had taken that 225 down to 195k instead of raising it to 235k I think he would have dumped it and been able to move on.

Edited by Tecumseh

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Some friends of ours who are HPI supporters and have always said prices will not fall in their area have had a real shock. the house across the road from them has just gone up for sale, the shock is that it has gone up with a asking price 5% less than it sold for three years ago. They had thought the price may not have gone up much over the last three years but were shocked when they found out it had gone negative.

5% below peak is hardly a large reduction though.

Encouraging yes, but still way over priced

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Guest The Relaxation Suite

5% below peak is hardly a large reduction though.

Encouraging yes, but still way over priced

Yes. A friend of mine has had his house on the market for 13 months with little to no interest. He has just shaved a whopping 2% off the asking price.

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Yes. A friend of mine has had his house on the market for 13 months with little to no interest. He has just shaved a whopping 2% off the asking price.

This is the problem though, does your friend need to sell.

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This is the problem though, does your friend need to sell.

Given that it has been on the market for 13 months I would suggest no.

That really is the issue and the problem we are facing

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Guest The Relaxation Suite

This is the problem though, does your friend need to sell.

Excellent question and in fact he really does need to sell - he is very desperate because he has just had a child and they need another bedroom. The fact is that like other sellers he paid far too much for this property and does not want to get whacked by his own poor decision to buy when he did - he does this by being in denial about prices and "holding out". I suspect he is very common in his thinking.

I know several people who are on the market right now and they have been on the market for 13 months, 18 months and 25 months - there are others but these three spring to mind. They are all asking way too much for their houses because they paid way too much not because they are inherently greedy people.

It is ironic because the only truly greedy person I know sold his house after just 6 months, misrepresented it in the sales material, lied about planning permission and managed to get at least 75k more for it than it was worth.

Our system chews up the honest and destroys them while rewarding bullshitters and blaggers.

Edited by Tecumseh

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Excellent question and in fact he really does need to sell - he is very desperate because he has just had a child and they need another bedroom. The fact is that like other sellers he paid far too much for this property and does not want to get whacked by his own poor decision to buy when he did - he does this by being in denial about prices and "holding out". I suspect he is very common in his thinking.

+1, my brother mother and cousin

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Guest The Relaxation Suite

+1, my brother mother and cousin

And what is important is that these people are not being greedy for the sake of it, they are "holding out" because they don't want to lose money - it's not about making loads of money any more but not losing money and that is different. The sad truth in this guy's case that his house in on the market for at least twice asmuch as it would be worth in any sane measured market - so the question is can he find a big enough mug to buy it?

The guy that I know who sold did so to a British-Pakistani BTL businessman, and that is not your everyday buyer.

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And what is important is that these people are not being greedy for the sake of it, they are "holding out" because they don't want to lose money

v interesting psychology

I will bear this in mind with my dealings with them, but I feel like shaking them!?!? *!?#!

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Guest The Relaxation Suite

v interesting psychology

I will bear this in mind with my dealings with them, but I feel like shaking them!?!? *!?#!

Like most on here I want a crash of epic propertions, but what we are basically saying is we expect people like my friends to voluntarily make themselves bankrupt so others can profit from their misery and buy cheaper houses. This might happen but these people will have to be forced to do this as it is not human nature to destroy oneself in this way. Forced sales through increased redundancies would be a start, and remember, when a lot of people start to go under the shame and stigma of it reduces and it ecnourages others to let go of the rope before the balloon gets any higher.

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We don't all live the beutiful south you know. 80K to 100K for 2 bed terrace have been the norm in the completely average non-aspirational Manchester areas for yonks, property bee is now showing 3 bedroom varieties of the terrace heading into this territory.

That sort of house would no doubt be 3 times the price in London. I can't see that living in London would be 3 times better than living in Manchester. Why are houses so 'cheap' (relative to the overpriced south)there? If you bought into the area would you be buying into a hellhole?

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5% below peak is hardly a large reduction though.

Encouraging yes, but still way over priced

You are comparing a sale price with an asking price.

All that has happened so far is the vendors have now publicly adjusted their expectation (hopes) so that they will only make a small loss on price paid. In an area that is allegedly 'immune' this is a good start and sends out a nice message to the neighbours. In private, they may already expect to achieve rather less.

Bearing in mind achieved prices nationally are currently running at 91% of asking, I hope the OP will be back one day to report a nosebleed of 13-14%!

Edited by Caveat Mortgagor

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  • 146 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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