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Something That Will Bring More Tears Of Happiness To Eyes

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If you're looking for an optimistic view of what could happen to asking prices in the UK when sense returns to the market, take a look at this house just sold in the US - a few miles from where I live.

The listing shows asking price dropping from $1,499k to sale of $1,351k (10% off). However, I know that the asking price actually started at $1,995k in October 2008 - so overall, that's a 33% reduction in two years. (The sale price shown in May 2007 of $750k would have been for the previous house that was torn down). The transaction was a "short sale" which allows the owner (presumably in this case, the developer) to sell the property clear of a mortgage even though the selling price was not enough to clear the loan. Some hope that sanity might return.

otoh, the memo does not seem to have been received by current developers/sellers of this house which is around the corner. I'll watch this one fall in price over the next few months.

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Others here might not appreciate the significance of this. Falling average US house prices mostly affected the lower and middle band i.e. prices from 60-600k. These houses are in upper end locations and owned by DINKY type professionals. The falls are clearly starting to bite across the board. I am seeing a similar trend in Houston where the posh parts have seen falls of around 10-25%. Thats people in finance and oil seeking their houses fall in price (I refuse to call it value)

If you're looking for an optimistic view of what could happen to asking prices in the UK when sense returns to the market, take a look at this house just sold in the US - a few miles from where I live.

The listing shows asking price dropping from $1,499k to sale of $1,351k (10% off). However, I know that the asking price actually started at $1,995k in October 2008 - so overall, that's a 33% reduction in two years. (The sale price shown in May 2007 of $750k would have been for the previous house that was torn down). The transaction was a "short sale" which allows the owner (presumably in this case, the developer) to sell the property clear of a mortgage even though the selling price was not enough to clear the loan. Some hope that sanity might return.

otoh, the memo does not seem to have been received by current developers/sellers of this house which is around the corner. I'll watch this one fall in price over the next few months.

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I am surprised by those falls in Bethesda as I assumed that Bethesda was immune to a price correction due to the massive Naval prescence there and accompanying very well paid engineering. research, academic jobs associated around the vast military complex.

I read an article by Bill Bonner last year where he talks about lots of newbuilds in the US having a brilliant frontage to get the "Wow" factor window where people make up their mind to buy within 10 minutes of seeing the house front and kitchen... but that upon closer inspection the rest of the newbuilds are often not that well constructed.

I like the look of the first one that is sold.

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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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