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20% Drop In Supply - Will This Lead To A Spring Bounce?


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HOLA441
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HOLA442
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HOLA443

This is true. My local EAs are telling sellers NOT to put For Sale signs up because it "looks bad." It sure as hell does. Verrry bad.

Happy days ahead HPCers. Glory Glory Glory!!! :lol::lol::lol:

I hope you are right RB ... I hope my years of sitting on the sidelines knowing that piles of bricks were waaaaaaaaaaaaaay too expensive whilst my mortgage-owning friends mocked me. Just as a note, I would not wish repossession on anyone but bad financial decisions (whether primary residence or BTL investment) MUST HAVE consequences. There will always be an option to keep a roof over the head in a civilised society, be it friends/family/state - it may not be the first choice but at least it is shelter.

As for the counting, my area (BH1) there were just under 500 in Jan-10 and now in Jan-11 there are just over 600. Increase over 20%.

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HOLA444

OK - I'll be a little more specific - SO50 postcode. Again, I reiterate - on the 20th November in my 3 mile radius search I had the choice of 227 properties within a £0-£250K price range (3 bedrooms). Now there are 182 - well that was yesterday. I shall have a look in a minute and see what today's figure is. Edit: Just looked - 181 - more reduction in supply then...

Be prepared for a shock for here is today's figures for your PC:

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=OUTCODE%5E2431&insId=11&maxDaysSinceAdded=14&radius=10.0

SO50: 1000+ properties for sale found 10 mile radius, 14 days.

Narrowed down to 3 miles of you PC and the number is:

645 properties for sale found

Edited by Realistbear
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HOLA445

OK - I'll be a little more specific - SO50 postcode. Again, I reiterate - on the 20th November in my 3 mile radius search I had the choice of 227 properties within a £0-£250K price range (3 bedrooms). Now there are 182 - well that was yesterday. I shall have a look in a minute and see what today's figure is.

Edit: Just looked - 181 - more reduction in supply then...

Look at the chart here for SO50: http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalAvailableListingsAndNew.html/nomsite?searchLocation=SO50 your postcode was up 41% year on year in December! The decrease you have noticed since November is purely seasonal as the chart quite clearly shows.

Edited by Pent Up
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HOLA446

Look at the chart here for SO50: http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalAvailableListingsAndNew.html/nomsite?searchLocation=SO50 your postcode was ip 41% year on year in December! The decrease you have noticed since November is purely seasonal as the chart quite clearly shows.

The increase in supply around my way has been around 40% over the last couple of months. This is a flood by any measure--especially as it is winter and most people wait until Spring.

This Spring is going to be a very corpulent dead cat sort of twitch.

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HOLA447

Little in the way of new property coming on to the market in the £500K+ price range in this area (West Sussex). Most people seem to be hunkering down and staying put.

I believe the cost of moving these days (particularly stamp duty) is a major factor in the collapse in the number of transactions in recent years. Clearly that erstwhile chancellor and prime minister (McBroon) either never heard of the Laffer Curve or deliberately choose to ignore it when raising stamp duty from 1% to 3% (4% for £500K+). Such a high tax penalty just grid locks the market and is a barrier to skilled labour mobility.

When prices were rising rapidly, most people seem prepared to absorb these transaction costs. But with prices static or falling, it's a different matter. If Ozzy wants to loosen the log jam and bring more houses onto the market, he would halve stamp duty for all prime residence purchases..... and triple it for 2nd home and BTL purchases!

Sorry but that doesn't make sense. If prices are falling, say 1%/month, 4% is what these owners will lose in just 4 months.

On a parallel issue, it does sound like your are more preoccupied with volumes than prices, right? ;)

edit: grammar. :(

Edited by Tired of Waiting
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HOLA448
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HOLA4410

Be prepared for a shock for here is today's figures for your PC:

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=OUTCODE%5E2431&insId=11&maxDaysSinceAdded=14&radius=10.0

SO50: 1000+ properties for sale found 10 mile radius, 14 days.

Narrowed down to 3 miles of you PC and the number is:

645 properties for sale found

No, I just gave the FIRST HALF of my postcode. SO50 is a huge area (housing-density wise).

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HOLA4411

Always good to have these types of threads on hpc - on the ground info, vital.

Just whilst we doing RM searches i have noticed that in my area, Harrogate, another trend is developing in a very surprising area (too me anyway!) of the market.

This might be due to the nature of the properties and maybe they are marketed in a different way but the top end is dead.

17 properties at £1m plus, non SSTC.

34 properties at £800k plus, 36 SSTC

83 properties at £600k plus, 90 SSTC

(on a Harrogate only search)

Is this an indication that away from the SSTC the more fragile nature of your moneyed populous (Kitchen showroom owners, building company owners, estate agent owners - you get the picture) are more exposed to the whims of the consumerist economy than those in finance positions etc in the SE?

Tried this search in Leeds as well and there is a real lack of activity in this top end as well.

Might be mis reading things but just very surprised by this.

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HOLA4412

Always good to have these types of threads on hpc - on the ground info, vital.

Just whilst we doing RM searches i have noticed that in my area, Harrogate, another trend is developing in a very surprising area (too me anyway!) of the market.

This might be due to the nature of the properties and maybe they are marketed in a different way but the top end is dead.

17 properties at £1m plus, non SSTC.

34 properties at £800k plus, 36 SSTC

83 properties at £600k plus, 90 SSTC

(on a Harrogate only search)

Is this an indication that away from the SSTC the more fragile nature of your moneyed populous (Kitchen showroom owners, building company owners, estate agent owners - you get the picture) are more exposed to the whims of the consumerist economy than those in finance positions etc in the SE?

Tried this search in Leeds as well and there is a real lack of activity in this top end as well.

Might be mis reading things but just very surprised by this.

http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=REGION%5E787&insId=12&radius=10.0&displayPropertyType=&minBedrooms=&maxBedrooms=&minPrice=&maxPrice=&retirement=&partBuyPartRent=&maxDaysSinceAdded=14&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&newHome=&auction=false&x=49&y=11

1000+ properties for sale found

Leeds, 10 mi radius, last 14 days.

The reason for the flood in Leeds is jobs. Up North is said to be seeing a much higher number of properties coming to market than even the SE.

Upper end of the market getting hit the hardest in Leeds:

390 properties for sale found (£300k to unlimited)

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HOLA4413
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HOLA4414

I wish that was the case, but there's no flood of new houses in Lymington where I'm looking. Here's the Rightmove report,

http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalAvailableListingsAndNew.html?searchLocation=SO41

Glad it's not just me then. Was beginning to think I was in some kind of parallel universe for a minute there...

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HOLA4415

I think a HPC will be preceded by a rent price crash.

Happening now. Place i just moved into, 3 rooms extra bed plus a granny flat) and 2 bathrooms bigger than the old place, £100 extra over what I was paying in the old place.

Three years ago came on at the same time but I didn't even bother to view it was renting out at £700 more than my old place.

That's what I call a rent crash .....

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HOLA4416

I wish that was the case, but there's no flood of new houses in Lymington where I'm looking. Here's the Rightmove report,

http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalAvailableListingsAndNew.html?searchLocation=SO41

Is no one listening to me??

ITS SEASONAL! Look at the chart in the link you just posted. What happened last winter? New listings were very low and properties were removed from the Market. Now compare it to this year. In the chart you posted far fewer properties were removed compared to last year.

Decemer 2009 properties on the Market was 603

December 2010 properties on the Market was 746

A 23% increase on last year and this is before the spring when people traditionally put their homes up for sale.

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HOLA4417

Is no one listening to me??

ITS SEASONAL! Look at the chart in the link you just posted. What happened last winter? New listings were very low and properties were removed from the Market. Now compare it to this year. In the chart you posted far fewer properties were removed compared to last year.

Decemer 2009 properties on the Market was 603

December 2010 properties on the Market was 746

A 23% increase on last year and this is before the spring when people traditionally put their homes up for sale.

I hear you!! Makes sense really, and is clearly shown by your RM linky.

Cheers!

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HOLA4418

There has been a 20% drop in the number of homes for sale in the area I am currently watching (since November), and I have noticed that a couple of Estate Agents have recently increased prices (monitored via Propertybee) by around 5%. This is a total reversal of what I was seeing at the end of last year.

A number of properties which are, in my opinion, over-priced by around 10-15% (based on previous sold prices monitored via Zoopla) have recently gone SSTC. Just wondered if anyone else is seeing this in the areas they are monitoring, and if so, whether general consensus is that demand will outstrip supply this spring and cause prices to rise even further.

I measure these things quite carefully, and saw a drop of 9% houses available on Rightmove between 21st October 2010 and 18th January 2011 (lowest point) (Kent and Sussex). Then in just one week between 30th January and the current day houses available have gone up by 10% (9.9% to be precise). In a week!

This may be the start of a spring bounce in supply.

Edited by Analysis
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