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Caveat Mortgagor

Could This Be A Sign We Are Entering The 'fear Stage'?

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http://www.24dash.com/news/housing/2010-11-03-Desperation-sets-in-as-homeowners-slash-asking-prices

'Desperation' sets in as homeowners slash asking prices

The number of properties for sale in the UK that have had their asking price reduced at least once since coming to the market has climbed by more than 13% over the past three months – up from 32.2% in August to 36.4% today. The figures come from Zoopla.co.uk the leading property search website.

The figures also show that the total value of the house price discounts has risen by almost £500 million over the last three months as owners start to get both more realistic and desperate to sell. For those properties that have been reduced in price, the average discount currently stands at 6.1% (£15,879) of the original asking price, according to Zoopla.co.uk, which provides a unique feature on its website allowing users to hunt for bargains by sorting properties by how much the price has been reduced by.

Towns in the West and the Midlands are seeing the highest number of asking price reductions. Swindon tops the list where half (49.5%) of all properties currently on the market for sale have been discounted by the seller from the original price. Norwich is in second place with 46.8% of properties having been reduced in price, followed closely by Bournemouth at 45.9%.

However, it is in the North that dominates the list of places with the highest average asking price reductions. The largest discounts are currently to be found in Manchester where price reductions average 7.15%, followed by Newcastle (7.13%) and Milton Keynes (7.04%). At the other end of the scale, the lowest asking price movements are in the South, with average asking prices in Poole and Swindon both down only 5.1%, followed closely by London where the average home has only been reduced in price by 5.2% since coming onto the market.

At the top end of the market, for properties listed for sale at over £1 million, the percentage of properties that have been reduced in price has grown by more than 26% over the past 3 months, up from 22.5% in August, to 28.4% today. And the average discount in this price bracket now stands at 8%.

Nicholas Leeming, Commercial Director of Zoopla.co.uk, said, "For the past few months, asking prices have been somewhat out of kilter with what buyers are prepared or can afford to pay, but sellers are becoming increasingly realistic. The traditional New Year influx of properties coming to the market for sale will mean even more competition among sellers and many are keen to try to secure a buyer this side of Christmas and are lowering their expectations accordingly. As a result, now is a great time for buyers to try to land a bargain.”

Edit to add - the Guardian are also running this story now..

http://www.guardian.co.uk/money/2010/nov/03/home-sellers-slash-asking-prices

Edited by Caveat Mortgagor

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http://www.24dash.com/news/housing/2010-11-03-Desperation-sets-in-as-homeowners-slash-asking-prices

'Desperation' sets in as homeowners slash asking prices

The number of properties for sale in the UK that have had their asking price reduced at least once since coming to the market has climbed by more than 13% over the past three months – up from 32.2% in August to 36.4% today. The figures come from Zoopla.co.uk the leading property search website.

The figures also show that the total value of the house price discounts has risen by almost £500 million over the last three months as owners start to get both more realistic and desperate to sell. For those properties that have been reduced in price, the average discount currently stands at 6.1% (£15,879) of the original asking price, according to Zoopla.co.uk, which provides a unique feature on its website allowing users to hunt for bargains by sorting properties by how much the price has been reduced by.

Towns in the West and the Midlands are seeing the highest number of asking price reductions. Swindon tops the list where half (49.5%) of all properties currently on the market for sale have been discounted by the seller from the original price. Norwich is in second place with 46.8% of properties having been reduced in price, followed closely by Bournemouth at 45.9%.

However, it is in the North that dominates the list of places with the highest average asking price reductions. The largest discounts are currently to be found in Manchester where price reductions average 7.15%, followed by Newcastle (7.13%) and Milton Keynes (7.04%). At the other end of the scale, the lowest asking price movements are in the South, with average asking prices in Poole and Swindon both down only 5.1%, followed closely by London where the average home has only been reduced in price by 5.2% since coming onto the market.

At the top end of the market, for properties listed for sale at over £1 million, the percentage of properties that have been reduced in price has grown by more than 26% over the past 3 months, up from 22.5% in August, to 28.4% today. And the average discount in this price bracket now stands at 8%.

Nicholas Leeming, Commercial Director of Zoopla.co.uk, said, "For the past few months, asking prices have been somewhat out of kilter with what buyers are prepared or can afford to pay, but sellers are becoming increasingly realistic. The traditional New Year influx of properties coming to the market for sale will mean even more competition among sellers and many are keen to try to secure a buyer this side of Christmas and are lowering their expectations accordingly. As a result, now is a great time for buyers to try to land a bargain.”

I do notice some fear but it is still limited to those who have to sell as you would expect. Agents are starting to get more aggressive on pricing I notice. I guess they are feeling it on lack of commission.

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It is interesting to see. I think its a very clear early sign of fear thats for sure. I keep hearing this supply issue problem causing prices to go up in the short and longer term... however the market would have factored that into the bubble. Thats why prices in the UK rose higher and quicker than in the USA or other major economies.

We need to see inflation from QE2 which will cause interest rates to rise... which will cause the repossession rate to rise which will cause Fear mark 2. Hopefully Fear mark 1 will start properly in 2011 and we can move on from this financial crisis... because its lingering like a bad smell at the moment because of the inactivity of the politicans around the world, the lack of understanding on how to solve it and the ultra low and unsustainable interest rates...

Also, when did growth become the number one priority for the BoE?!!?!?!?!? isn't it keeping inflation below 2%?!?!?!?

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It is interesting to see. I think its a very clear early sign of fear thats for sure. I keep hearing this supply issue problem causing prices to go up in the short and longer term... however the market would have factored that into the bubble. Thats why prices in the UK rose higher and quicker than in the USA or other major economies.

We need to see inflation from QE2 which will cause interest rates to rise... which will cause the repossession rate to rise which will cause Fear mark 2. Hopefully Fear mark 1 will start properly in 2011 and we can move on from this financial crisis... because its lingering like a bad smell at the moment because of the inactivity of the politicans around the world, the lack of understanding on how to solve it and the ultra low and unsustainable interest rates...

Also, when did growth become the number one priority for the BoE?!!?!?!?!? isn't it keeping inflation below 2%?!?!?!?

the supply issue is mumbo jumbo economics. if people can't sell they will rent whilst they can still pay the mortgage. that means cheaper rents because of increased supply. at the same time whilst mortgages are expensive people will not pay prices higher than rent. only thing that can break that is cheap credit. we need big growth or qe2 for that. qe2 is no guarantee of growth as US has discovered. US taking massive gamble today with QE2 if it creates inflation or trouble with emerging markets i.e. China's dollars loosing value. BOE would struggle to justify QE2 with inflation still above 2% and not really sure coallition would take it. Ossey hinted it was ok but really I don't think it is ok to create more debt whilst the people of the country face cuts.

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Supply stuff is nonsense. There could be a million people chasing one house, but if everyone is on £20k a year and the house is prices at £2m it'll remain unsold.

It's a pricing problem.

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Rightmove first

Rightmove is initial asking prices only. Reductions don't effect it. Unless EAs lower their initial valuations to keep in line with properties already marketed and reduced, which at the moment they don't seem to be.

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Just noticed that 39% of listings in Sibleys home town of Maidstone have been reduced. Average reduction of £16k! :lol:

Has someone from here mischievously pretended to be Sibley in the comments section to make him look like even more of a tool?

Edited by Caveat Mortgagor

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Rightmove is initial asking prices only. Reductions don't effect it. Unless EAs lower their initial valuations to keep in line with properties already marketed and reduced, which at the moment they don't seem to be.

there are still a lot of stupid asking prices coming up e.g. a flat just listed for 355k, identical sold at auction for 230k last week. only needed a refurb. another flat on for 400k, identical at auction for 260k needed a 30k refurb. Both South London

rightmove index is still a joke right now.

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Just noticed that 39% of listings in Sibleys home town of Maidstone have been reduced. Average reduction of £16k! :lol:

Has someone from here mischievously pretended to be Sibley in the comments section to make him look like even more of a tool?

Oh now who'd do that?

And besides, how could it make him "look like even more of a tool..." shurely not possible....

:)

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  • 140 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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