Jump to content
House Price Crash Forum
The Masked Tulip

Up 5K In A Week

Recommended Posts

I posted this in a couple of threads this week.

House in a road I like near me on the market for the whole of last year for 310K asking with 2 different EAs.

One EA privatly admits to me that asking price should be 270K and the owners should take offers around 270K.

This week a house in the same road comes on the market with the same above EA who told me that the above should be on for 270K - problem is this new entrant to the housing market is on for 350K. Yes, 350K.

The blurb for it says it has been modernised but looking at the photos it looks like nothing has been done, the house is empty and looks pretty dark on the inside. It is also on a corner plot next to a busy road.

All in all the house on for 310K is by far the better house.

Problem is the 310K sellers are now going to see the 350K asking price house and instead of lowering their own price to sell they are now going, no doubt, want to raise their own asking price. Of course, the EA could be trying to sell the first by over-valuing the second or the sellers of the second could just be greedy, deluded, in debt.

Suffice to say, a house that I hoped would drop to 270Kish asking price this year and then allow me to put in an offer 10% below is now, as far as I can make out, just going to stick there at 40K above what the EA told me should be its asking. Interestingly, when I questioned her today pointing out that back in late Nov she had told me it should be on for 270K she, surprise surprise, denied all knowledge of doing so.

No wonder RM is showing price increases.

The 350K asking price house, not even on a week yet, has raised its asking price by 5K.

Share this post


Link to post
Share on other sites

(cut & paste same comment I've made on other threads)

Spring bounce mentality - the uninformed trying to cash in on what is usually a bullish / sellers time of year.

In all honesty I am surprised by the recent Rightmove asking figures for new instructions. I thought they would be higher than +0.3%... Three quarters of that data is from before Chrimbo and the New Year though and I reckon had it been purely the month of December then it would have been negative. I really expect the next RM figures to be eye-poppingly positive, before reversing sharply after that when the spring bounce turns into a spring slump.

Share this post


Link to post
Share on other sites

Yep, I agree - EAs so ingrained with the Spring bounce mentality that they can't see the woods for the trees.

Bringing more properties to the market at this time inevitably means they are going to be way over priced, at first...

I reckon that by June, the last signs of the dead cat bounce will be vanishing.

Share this post


Link to post
Share on other sites

Bringing more properties to the market at this time inevitably means they are going to be way over priced, at first...

I reckon that by June, the last signs of the dead cat bounce will be vanishing.

You might just be right. Vendors always look at for sale prices and never at sold prices.

I have sold a property in one new development recently for £220k, it was on for 250 with another agent, vendor took my advice when i listed it and reduced but only to 240. They later took my advice agein and accepted an offer after 8-10 weeks at 220. There is an identical house on the next street on mkt for 270 and i now have a 3rd identical house on this same street (albeit nicer inside) but instead of listening to the sold evidence, the vendors are looking at the overpriced one down the road and will price according to that :o

You can lead a horse to water...

Share this post


Link to post
Share on other sites

You can lead a horse to water...

Always appreciate your comments as they are 'from the inside'. Out of interest, are you seeing a lot more sellers putting houses on the market in expectation of a spring bounce? How would this time compare to previous Januarys?

Share this post


Link to post
Share on other sites

Always appreciate your comments as they are 'from the inside'. Out of interest, are you seeing a lot more sellers putting houses on the market in expectation of a spring bounce? How would this time compare to previous Januarys?

The first two weeks have been dead, so we have been pounding the streets door knocking and leaflet dropping looking for new business. This week has picked up considerably, but I would expect that - partly because it always takes a few weeks for people to get back into the old routine before they make that selling decision and partly because of all the hard work.

I don't think many vendors are switched onto the concept of a spring bounce, they just want to move and didn't want to do it before christmas when it was so miserable and christmas itself was all people were thinking about. It's always difficult to comment accurately on the market when you are in the thick of it, but last Jan was pretty dead too.

Share this post


Link to post
Share on other sites

HEy P'boro Agent,

Just a quick one. What is your opinion on the new hospital's effect on the local housing market? It's move from a central rough-ish location to a not-so-central rough-ish location, have you seen any effects on the local housing and rental market?

Only out of interest, mind, I'm so glad I've left the place (no offence).

Share this post


Link to post
Share on other sites

HEy P'boro Agent,

Just a quick one. What is your opinion on the new hospital's effect on the local housing market? It's move from a central rough-ish location to a not-so-central rough-ish location, have you seen any effects on the local housing and rental market?

Only out of interest, mind, I'm so glad I've left the place (no offence).

The short answer is not a lot in the short term.

For the most part, the employees who worked at the two previous hospitals have all transferred to the City Hospital. As you know Peterborough has great parkways so at most it is only taking someone a maximum of 5 extra minutes to get to work and there is loads of parking so probably even less time to park and get in. I don't suppose someone is really going to be that motivated to move, especially as the majority of NHS workers don't get paid a great deal. Over the past few months we've had some dealings with consultant surgeons but I'm not sure that they weren't just buyers we'd have got anyway - besides they generally look in the up market areas like Castor, Longthorpe & Orton Waterville, which again are well served by parkways and won't make much difference to travel in their Audi A5s and BMW 7 series.

I suppose in the long term, prices around Bretton and Ravensthorpe may be affected a little but I don't think we will notice it much compared to other influences on HPI. What is of more interest is what they will eventually do with the PDH site. I can imagine a nice, small, popular British Sugar type development offering good links to the station which they are also due to redevelop in the next 48 months (but then they've been saying that for years too). I can actually imagine prices going up a bit around there as it is becoming increasingly an Asian dominated area and demand will be high, with Asians jockeying with commuter cash.

Share this post


Link to post
Share on other sites

Thanks, some good points you make there. The fast trains from P'boro to London do make a difference, compared to say, Huntingdon. Wonder how much a season ticket costs, though. I'll keep an occasional eye on the place, they could do with bulldozing much of the area really.

Share this post


Link to post
Share on other sites

Mate of mine's house was down £10k last year, but the other week he said it was not £2k up on original price bought at! He was trying to convince another friend to buy a flat, saying that in the long term prices only ever go up. I just couldn't believe it.

Share this post


Link to post
Share on other sites

Overheard an EA this morning talking to a woman who was debating whether to accept a 390K cash offer on her house or to hold out for another viewer, of 2 weeks ago, who have made a tentative mortgage offer of 420K but not committed.

Husband has had to go to London to work and they have now decided to move to Oxford - IMPO Oxford to London is a heck of a commute but guess it is closer than S'sea.

Anyhow, the woman was angsting over the 390K really wanting the 420K but the EA was telling her to bite the hands off the 390K cash buyer especially as the house being sold is built in an area of known mine-works - mortgages usually takes ages as the banks do long searchs with the coal-board in Nottingham about where the mine-works are in relation to the houses... and they always come back that they are built close to vent shafts... but still she wanted that 420K.

Problem for me is that someone paying 390K cash for a house in S'sea probably would queer the entire month's stats.

Share this post


Link to post
Share on other sites

I am looking at a house today that is on for 300K. It was on most of last year for 350K mainly because, I presume, the last house that sold in that same road 2 years ago sold for 345K.

Alas, land reg shows me that this 300K asking price house was bought for 232K in 2006.

I am just going along to have a look at the house but no intention of buying whilst their asking price is so nutty.

Share this post


Link to post
Share on other sites

To paraphrase this thread...there is no sanity in the current market and anyone buying must be mad.

This paraphrases everything that's been posted on this website since 2004!

Share this post


Link to post
Share on other sites

I've just started to see drops in a few of the house I follow on Rightmove. I normally follow about 10-15 and literally in the last 2 weeks 3 or 4 have dropped their price. Sadly, its only in the region of 1% of asking price in all cases. I was contemplating making a couple of cheeky offers as well, but of their idea of a price drop is 1%, they won't be chuffed when I come in 20% under asking price.

Mind you, a house in another area I follow has just come up and that asking price is only just above the 2002 price, so its not all bad.

Edit - Gah. Except now the 2002-ish price house has gone Sold STC since writing that earlier! It was only on for a couple of weeks max.

Edited by Vagabond

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 285 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.