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The Masked Tulip

A Stand-Off Between Sellers And Buyers Is Stalling Housing Market

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I haven't seen this posted elsewhere on here.

Read More http://www.walesonline.co.uk/news/wales-news/2010/11/01/a-stand-off-between-sellers-and-buyers-is-stalling-housing-market-91466-27577151/#ixzz141IMeYWD

HOUSE prices fell for the fourth month in a row during October as buyers continued to stay away from the market, research indicates today.

Property values in Wales and England fell by 0.9% during the month – the biggest drop since January 2009 – to leave the average home costing £156,200, according to property intelligence group Hometrack.

The group said a combination of falling demand and rising supply had continued to put house prices under pressure, with falls recorded in 56% of postcode districts, while just 0.1% of areas saw a rise.

It found homes in Wales are spending an average of more than three months on the market – longer than almost anywhere else in the UK – while the mismatch between supply and demand has given buyers the upper hand in price negotiations, with sellers in Wales achieving an average of just 91% of their asking price compared to a UK average of 92.7% – the lowest level for more than a year.

Richard Donnell, director of research at Hometrack, warned further house price falls were “inevitable” in the run up to Christmas and into 2011.

“A stand-off is beginning to emerge between buyers waiting for prices to fall further and sellers being unrealistic on the price they’re willing to accept.

“Further price falls are inevitable in the run-up to Christmas and are likely to continue into the first half of 2011.”

But he added that the group expected a “modest adjustment” in prices, rather than a return to the double digit falls seen during 2008.

North Wales-based estate agent Dafydd Hardy said the results of the survey should be taken with a pinch of salt.

He said: “There is a complete divergence of opinion as to whether house prices are going up or going down.

“For example, we did a survey for a Gwynedd housing conference about two months ago which showed that sale prices had actually gone up by 3%.

“It is also not helpful to lump the whole of Wales together when house prices are subject to regional variation.

“If we were to take the trends in the south-east and London they would be wildly different, and the same goes for Wales.”

He added: “Our sales will never be as high as they were in 2006-07 but they are certainly giving us enough sales per month for us to be optimistic about the future of the housing market.

“Of course the other critical factor is the lack of flexibility in the lenders with regards to deposits.

“Houses are affordable but the problem is that people need a higher percentage deposit and lenders are more demanding. That is what is stopping the market moving.”

Read More http://www.walesonline.co.uk/news/wales-news/2010/11/01/a-stand-off-between-sellers-and-buyers-is-stalling-housing-market-91466-27577151/#ixzz141IdcHSs

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According to Hometrack, reported in the Telegraph, this is now a YOY fall.

UK house price show first year-on-year fall

http://www.telegraph.co.uk/finance/economics/houseprices/8100445/UK-house-price-show-first-year-on-year-fall.html

House prices in England and Wales dipped 0.1pc in October from a year earlier, giving the first year-on-year fall since January as a stand-off emerged between buyers and sellers

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It's always been my opinion that the 'not selling at a loss' mentality would keep an HPC on ice for a while.

I'm not talking about a real loss either, just a 'I'm not selling for less than it was worth in 2007' mentality.

In fact, I'd like to coin a new phrase "Mumsnet Economics".

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It's always been my opinion that the 'not selling at a loss' mentality would keep an HPC on ice for a while.

I'm not talking about a real loss either, just a 'I'm not selling for less than it was worth in 2007' mentality.

In fact, I'd like to coin a new phrase "Mumsnet Economics".

Aye we still need more forced sales before capitulation.

Bloke in my office on the phone this morning, had his "low"* offer refused, phonning back to resubmit the same offer, and how it;s "time limited" as he's " looking at other properties".

Absolutely a stand-off in other words!

So hard to know what's going to happen. The application of logic to future price trends has failed us on here in the past after all...

* £156K for a 2-bed in the middle of nowhere in Cambridgeshire :blink::o

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The term "stand-off" makes you think that a buyer and a seller having exactly the same to gain/lose.

I wouldn't call it a stand off at all. Or if I did, I would redefine 'stand-off' to;

Stand off: whereby the buyer, not particularly bothered about buying yet and laughing at the still massively unrealistic price, is holding a loaded MP5 at the forehead of an un-armed, naked, crying seller. The seller, waving a dirty white flag made from the last remaining posession, his deeply soiled underpants, pleads for the buyer to release him from the financially retarded decision to buy in summer 2007.

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The term "stand-off" makes you think that a buyer and a seller having exactly the same to gain/lose.

I wouldn't call it a stand off at all. Or if I did, I would redefine 'stand-off' to;

Stand off: whereby the buyer, not particularly bothered about buying yet and laughing at the still massively unrealistic price, is holding a loaded MP5 at the forehead of an un-armed, naked, crying seller. The seller, waving a dirty white flag made from the last remaining posession, his deeply soiled underpants, pleads for the buyer to release him from the financially retarded decision to buy in summer 2007.

That's all well and good but the market isn't just made up of people who bought in the summer of 2007. A huge percentage of houses for sale will have been bought well before that.

In my town with a population of about 20k there have been two repossessions in the 3 years since the credit crunch first bit and one of them went for the same price that one achieved on the same street in sept 06.

The truth is that nobody is interested in buying and nobody is interested in selling and rents have been forced up by the huge influx of eastern europeans who are living 10 to a house.

Interest rates are the thing that will force people to make a decision to actually sell but that looks years away.

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The term "stand-off" makes you think that a buyer and a seller having exactly the same to gain/lose.

I wouldn't call it a stand off at all. Or if I did, I would redefine 'stand-off' to;

Stand off: whereby the buyer, not particularly bothered about buying yet and laughing at the still massively unrealistic price, is holding a loaded MP5 at the forehead of an un-armed, naked, crying seller. T

trouble is, the seller, despite being naked, has a chip up each nostril and is saying 'wibble prices double every ten years' in a cuban accent whilst looking forward to future-MEW-financed holidays and nice cars, refusing to budge a penny below 2007+10% prices

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There are never buyers who "have" to buy, but there are always sellers who "have" to sell.

The stand-off will only end one way.

House "values" on the way up and the way down are set by whatever is selling, regardless of how low the volume. Whenever a single property sells, all other "values" in the area adjust.

You might beleive you house is "worth" £300,000, but when it comes to a remortgage, you bank will look at the latest sold prices in your area, and adjust your houses "value" appropriately.

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Exactly, I think some here believe people sell on a whim. They don't - there are usually very good reasons for selling, whereas I would argue the overiding reason for ftbs during the boom (encouraged largdly by the media) has been to buy so as not to 'miss the boat'. And now prices are falling that motivation has been removed (reversed in fact).

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  • 153 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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