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Anyone Expecting To See Big Reductions Now That The New Year Is Here?

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With the arrival of the first working week of 2011 does anyone here expect to see siizeable reductions in asking prices this month?

Do we anticipate / hope that EAs will return from Christmas with the intent of getting their vendors to reduce asking prices by chunky amounts?

I doubt it as I think that denial is still here big time with many sellers and with many EAs.

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With the arrival of the first working week of 2011 does anyone here expect to see siizeable reductions in asking prices this month?

Do we anticipate / hope that EAs will return from Christmas with the intent of getting their vendors to reduce asking prices by chunky amounts?

I doubt it as I think that denial is still here big time with many sellers and with many EAs.

Still firmly in denial / in disagreement with me on what prices should be

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i think we will start to see big reductions around march time,

think it will take a couple of months for things to start kicking in,

but most selling prices are around 10 -20% lower than asking prices, so we are starting to see some sense,

i am going to 20-25 % falls in asking prices this year,

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Probably no more than the pre Christmas period. I do expect a lot of new listings to be coming on in the first few months of the year though. Hopefully at mote realistic prices.

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From what I've seen so far some of the retailers are trying to push totally unrealistic and outrageous price increases on some items but I'm not expecting their price ambitions to hold. I've NEVER seen the stores so empty in the period between Christmas and New Year, even the bargain basement stores.

I imagine the same pattern will happen for a short time with unrealistic house prices with the unmotivated sellers but the motivated sellers will soon be telling a far different story.

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With the arrival of the first working week of 2011 does anyone here expect to see siizeable reductions in asking prices this month?

In a word, no.

My Primelocation alerts have almost completely dried up the past month or so. I was formerly getting 2 or 3 a day.

People are so hard-wired into believing in Spring Bounces, my guess is that they'll mostly be hanging on for that. There will be the odd desperate (or realistic) vendor but I'm not expecting to see many significant drops around here (SW London).

Whether they'll all change their minds when the rush of Spring-Bouncy buyers fails to materialise is another matter. Can't say I'm entirely ruling out some sort of Spring Bounce, though - there's always a lull over Christmas and the worst of the winter, and everything does look better once the daffodils start coming out.

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In a word, no.

My Primelocation alerts have almost completely dried up the past month or so. I was formerly getting 2 or 3 a day.

People are so hard-wired into believing in Spring Bounces, my guess is that they'll mostly be hanging on for that. There will be the odd desperate (or realistic) vendor but I'm not expecting to see many significant drops around here (SW London).

Whether they'll all change their minds when the rush of Spring-Bouncy buyers fails to materialise is another matter. Can't say I'm entirely ruling out some sort of Spring Bounce, though - there's always a lull over Christmas and the worst of the winter, and everything does look better once the daffodils start coming out.

My thoughts exactly. I think they will hold out, I think they will convince themselves that there will be a Spring bounce.

I expect to see asking prices rise as a result. I even expect to see the Haliwide figures show a house price rise and the Beeb reporting the recession over.

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May/june will IMO be the months to watch, when sellers/EAs realise the spring influx of buyers ain't gonna happen and panic starts to set in. This is what happened in 2008 and I can't see any reason why it won't this year (providing the government don't start meddling).

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The VIs will see to it that the headline figure is 10-15% for 2011. Under the covers, if we get big IR rises and the jobs apocalypse the coalition is promising, then the house price deflation will be greater as properties are offloaded at auction by the lenders we will see much bigger falls perhaps skewing the real figure to -20%. Spring onwards is when the bother will really kick in. I think the headline figures will be -30% by end 2013 but for some areas as much as -40%. For rapidly offloaded properties at auction maybe -50% I don't think we can go any quicker than that without a social and economic meltdown. Three years it will be a very different landscape but don't hope for massive falls in 2011.

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The damage has already been done with all the gloom in the media. Nobody is going to be in a big rush to buy property now. I think you'll see big reductions on the top end of the market. I would anticipate that flats will be hit hard too.

Just sit back and enjoy it. If you want a bargain you'll find them.

It must be frustrating being an estate agent at the moment with nothing selling. :lol:

Edited by Xurbia

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I think we are on a top flat bit of the curve now. It will take the VAT increase and low wage increases and people to realise that buying houses aren't the sure way to make a profit that they once were and people will start to move out of investing in property and into things that will go up with inflation (commodities). But it will only be when people can't afford to pay their mortgages and their houses get repossessed that prices will really fall and it will take about a 4% increase in interest rates to do that.

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Anyone Expecting To See Big Reductions Now That The New Year Is Here?

No.

Banks wont create a glut of properties by repossessing.

Interest rates wont move much if at all.

Unemployment figures will continue to be fudged.

All I see is stagnation.

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The damage has already been done with all the gloom in the media. Nobody is going to be in a big rush to buy property now. I think you'll see big reductions on the top end of the market. I would anticipate that flats will be hit hard too.

Just sit back and enjoy it. If you want a bargain you'll find them.

It must be frustrating being an estate agent at the moment with nothing selling. :lol:

+1 Nobody is in a rush to buy unless it is with a good discount...there is no need to rush, prices are slowly unwinding.......also could say why would anyone want to sell if they don't have to...who has to?

Few buyers, few sellers....not good for business or tax revenue....all this has been brewing up for the last few years, the days of easy money are behind us...lets get some sense of normality/reality back into the market place. ;)

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My thoughts exactly. I think they will hold out, I think they will convince themselves that there will be a Spring bounce.

I expect to see asking prices rise as a result. I even expect to see the Haliwide figures show a house price rise and the Beeb reporting the recession over.

I can't see a bounce like last year's, though. I started looking around last May, and just about every other time I phoned about a property the EA said (in that smug tone they're so good at when the market's moving), 'Sorry, it's already under offer.'

Since then there's been a lot in the media about falling prices, and the general climate is not optimistic to say the least. So I do think most SB buyers are going to be rather more eagle-eyed and canny over prices than they were last spring.

Must confess that we (daughter and I) are coming close to exchanging on a property we found back in the summer, though. It's been fraught with complications, absentee freeholder, you name it. We could probably have paid less by waiting, but this is a long-term thing, there are good reasons why now is the right time, and despite months of looking we just hadn't found anything offering anything like the same space/potential/ticked boxes within the same price range.

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I can't see a bounce like last year's, though. I started looking around last May, and just about every other time I phoned about a property the EA said (in that smug tone they're so good at when the market's moving), 'Sorry, it's already under offer.'

Since then there's been a lot in the media about falling prices, and the general climate is not optimistic to say the least. So I do think most SB buyers are going to be rather more eagle-eyed and canny over prices than they were last spring.

Must confess that we (daughter and I) are coming close to exchanging on a property we found back in the summer, though. It's been fraught with complications, absentee freeholder, you name it. We could probably have paid less by waiting, but this is a long-term thing, there are good reasons why now is the right time, and despite months of looking we just hadn't found anything offering anything like the same space/potential/ticked boxes within the same price range.

can only agree - about to complete on a small country cottage which has swallowed up most of my STR fund and savings (d**** that stamp duty) but I will have my own house again, no more living in rented limbo, and the banks no longer have my money for a pittance. Best outcome all round - and the dog is happy too. :) s

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Spectacular correction, and I love how it has conditioned expectations.

Could it happen hard and fast like that on the mainland?

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I can't see a bounce like last year's, though. I started looking around last May, and just about every other time I phoned about a property the EA said (in that smug tone they're so good at when the market's moving), 'Sorry, it's already under offer.'

What does that mean, I would really like to know.

If an offer has been received below the asking price, then surely the vendor has no moral obligation to withdrawfrom the market.

Should not new offers be passed on nonetheless?

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With the arrival of the first working week of 2011 does anyone here expect to see siizeable reductions in asking prices this month?

Do we anticipate / hope that EAs will return from Christmas with the intent of getting their vendors to reduce asking prices by chunky amounts?

I doubt it as I think that denial is still here big time with many sellers and with many EAs.

Theres only one way thats down, some people need to sell some won,t, its the one,s who need to sell who will set the market level.

can not see any postive price rises for a few years at least untill the economy improves and prices are more realistic.

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I cant see that there will be any spectacular falls regardless of wishes of the life renters on here, the government policy is clear that the housing market will be allowed to correct slowly to do otherwise would not be in anyones interest in the short term.

Many public sector, soon to be unemployed/unemployable will have been renting anyway due to the low wages their non-productive jobs command.

Stagnation and a slow real term decline due to inflation is my bet.

Edited by moody frog

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I don't see anything particularly different from the past 12 months happening in the first 6 months of this year. Maybe longer.

  • New property will come to market at kite-flying asking prices.
  • This property will reduce 10K per increment, usually over 1-3 months. Most will reduce 2 times, maximum 3 then sit or be removed.
  • Existing properties on my rightmove list that have already reduced will either continue reducing at the same rate or be removed alltogether, this will be in response to the lack of spring bounce.
  • Banks will keep limiting their exposure be demanding large deposits, this will restrict the pool of buyers able to complete and set new floor prices.
  • No real change in repossesions, makes no difference to me, I'm not a cash buyer and struggle to take advantage of these at auction, and abhor the idea that my best offer is hawked around in public if the sale is being handled by a EA.
  • The BOE very public interest rate dance\squabble will continue, but won't move one iota.

In short, this snails-pace price correction will continue. It's ironic that this is taking so long, as my life is actually moving on and my needs of 3 years ago when I got serious about my deposit are borderline different from my needs and wants now (time for employer change, possibly involving a location change). Even if I could at the moment (I can't as I can't quite squeeze into the 75% ltv market right now for what I wanted), I don't even know that I would.

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I cant see that there will be any spectacular falls regardless of wishes of the life renters on here,

Do you realise what a condascending pr1ck that makes you sound?

the government policy is clear that the housing market will be allowed to correct slowly

Yes, because we can always trust what politicians say..

I would say it's intentionally vague - and besides there's not much left they can do to influence things either way. As for engineering a period of stagnation - do you really think they are capable of that?

to do otherwise would not be in anyones interest in the short term.

What??? Are you serious!!!

Many public sector, soon to be unemployed/unemployable will have been renting anyway due to the low wages their non-productive jobs command.

Suggest you start doing a little research before posting tosh my friend :rolleyes:

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  • 312 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% +
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