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House Sales Drop To Lowest Level In 21 Months

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8443160/House-sales-drop-to-lowest-level-in-21-months.html

House sales drop to lowest level in 21 months

House sales have dropped to their lowest level in 21 months as estate agents report prices continuing to fall.

The property market has grounded to a halt amid fears about a rise in interest rates and uncertainty in the economy.

The on-going lack of affordable mortgages is also restricting buyers.

It has left a ‘generation of potential first-time buyers’ waiting patiently in rented accommodation, estate agents warned.

The data released today by the Royal Institution of Chartered Surveyors found that estate agents sold just 14.4 properties each during the last three months, the lowest level since June 2009.

It revealed 23 per cent more estate agents reported prices falling rather than rising.

Estate agents suggested many buyers are still being over ambitious with their asking prices, which need to be lowered to secure a sale.

Neil Foster, a RICS member based in Tyne & Wear, said: “New buyers are entering the fray but with little to excite their interest, transactions remain sluggish. Vendors still need to adjust their sights in terms of price.

Ben Hudson, a RICS member based in North Yorkshire, said: “Buyers remain incredibly picky and reluctant to commit. They are also looking more carefully at their finances, encouraged by the threat of a rise in interest rates and the continuing fragility of the economy.”

Alex McNeil, a RICS member based in West Yorkshire, said: “A generation of potential first-time buyers patiently wait in rented accommodation.”

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Estate agents suggested many buyers are still being over ambitious with their asking prices, which need to be lowered to secure a sale.

Neil Foster, a RICS member based in Tyne & Wear, said: “New buyers are entering the fray but with little to excite their interest, transactions remain sluggish. Vendors still need to adjust their sights in terms of price.

True that. Prices still horrendously above what they should be in the North East. Pokey flats still going for 100k+, where, in reality, they should be going for 50-75k.

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Estate agents suggested many buyers are still being over ambitious with their asking prices, which need to be lowered to secure a sale.

Neil Foster, a RICS member based in Tyne & Wear, said: “New buyers are entering the fray but with little to excite their interest, transactions remain sluggish. Vendors still need to adjust their sights in terms of price.”

EAs are finally realising that the era of Gordonomics is over. Reality beginning to hit home.

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BBC had a different angle on this story:

http://www.bbc.co.uk/news/business-13037917

Property market still in the doldrums, say surveyors

There is no sign yet of the UK property market pulling out of the doldrums, says the Royal Institution of Chartered Surveyors (Rics).

Its latest monthly survey shows sales and prices were generally flat, while interest from would-be buyers was declining.

The survey results chime with those of other recent property surveys.

However, Rics said there were big regional differences, with London very different to the rest of the UK.

"The rather negative outlook for property prices across the UK seems to better reflect the general economy than the micro climate of London," said Rics housing spokesperson, Ian Perry.

"The low level of buyer interest in many parts of the UK continues to impact on the market, resulting in some downward pressure on prices.

"With the prospect of forthcoming interest rate rises and continued shortage of mortgage funding, it seems that overall recovery for the national housing market is still some way off," he added.

Capital gains

The Rics survey was based on answers from 259 surveyors who work as estate agents and the survey has traditionally had its finger on the pulse of the market.

The March survey found that nearly 60% of surveyors reported no change at all in the prices of the properties they had sold.

Where prices had fallen, they were normally just 0%-2% lower than before.

"Within England and Wales, a clear North South divide is emerging, with London being the only region recording rising prices, demonstrating that the capital is still operating under different market conditions to the rest of the country," Rics said.

The generally stagnant nature of the property market was highlighted by the fact that completed sales per surveyor fell to their lowest level for 21 months, at just 14.4 sales in the past three months.

Meanwhile the number of homes for sale also dropped, to 64.6 per surveyor.

London is still living in a parallel universe to the rest o the country. Don't worry it's just the Doldrums, there will be some strong wind along soon.

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This is good.

Even the VIs are saying prices need to fall.

Yes, there feels like there's a real momentum against overpriced houses building up at the moment. Maybe another false dawn but it's good to see the cracks really starting to show.

I'm not sure about the hoardes of FTBs waiting patiently either. Yes, some, but only the savvy. AKA not your chavvy couple with a £3k deposit.

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...The generally stagnant nature of the property market was highlighted by the fact that completed sales per surveyor fell to their lowest level for 21 months, at just 14.4 sales in the past three months....

Sales of just over 1 per week. No wonder they have enough time to come and troll HPC.

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cant move for SOLD sstc signs in colchester

the land of broken chains.

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If you look at places where house prices have collapsed, like Florida and California, there was always a long standoff between sellers and buyers at the old high prices. In California I remember much debate on housingbubbleblog.com and I think it lasted nearing 2 years. I remember people on housingbubbleblog.com who lived in California eventually giving up and buying into the market in 2008.

When eventually some sellers cracked and decided to just sell for what they could, soon it was a mad rush as people tried to get out before prices got even lower. And buyers were totally panicked about buying into a falling market.

That can be catastrophic because you go from a relatively stable market where people are 'building equity', gradually paying down mortgages, planning for the future.. to wipe out mode.

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If you look at places where house prices have collapsed, like Florida and California, there was always a long standoff between sellers and buyers at the old high prices. In California I remember much debate on housingbubbleblog.com and I think it lasted nearing 2 years. I remember people on housingbubbleblog.com who lived in California eventually giving up and buying into the market in 2008.

When eventually some sellers cracked and decided to just sell for what they could, soon it was a mad rush as people tried to get out before prices got even lower. And buyers were totally panicked about buying into a falling market.

That can be catastrophic because you go from a relatively stable market where people are 'building equity', gradually paying down mortgages, planning for the future.. to wipe out mode.

there is a big difference between building equity by paying down debt, and building equity by outbidding your fellows for the same properties....one is sustainable, the other is a Ponzi.

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there is a big difference between building equity by paying down debt, and building equity by outbidding your fellows for the same properties....one is sustainable, the other is a Ponzi.

Yes it is a very important distinction. Its not that easy to tell the two apart when something is rising though. For example with oil right now is this a rising sustainable market, or is speculative money coming in and pushing it up? Or some combination.

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True that. Prices still horrendously above what they should be in the North East. Pokey flats still going for 100k+, where, in reality, they should be going for 50-75k.

Could not agree more. I walked the dog for miles around the Gateshead - Low Fell area last Sunday and as I checked the asking prices online I can't really see how these shitholes can sell. Some probably get bought for cash by a slumlord and a dole family gets slotted in for a good income.

Tragic.

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I loathe the RICs site - it is so difficult to find anything on it. Anyone know where the latest RICs report is on there?

Edit:

Ah, Wales is doing fine.

http://www.walesonline.co.uk/news/wales-news/2011/04/12/sales-and-buyer-inquiries-rise-as-housing-market-wakes-up-but-first-time-buyers-still-struggle-91466-28501525/

Edited by The Masked Tulip

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I loathe the RICs site - it is so difficult to find anything on it. Anyone know where the latest RICs report is on there?

Edit:

Ah, Wales is doing fine.

http://www.walesonline.co.uk/news/wales-news/2011/04/12/sales-and-buyer-inquiries-rise-as-housing-market-wakes-up-but-first-time-buyers-still-struggle-91466-28501525/

It's rubbish isn't it. But the March release isn't online yet. Should appear here soon: http://www.rics.org/housingmarketsurvey

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(...)

It has left a ‘generation of potential first-time buyers’ waiting patiently in rented accommodation, estate agents warned.

(...)

Alex McNeil, a RICS member based in West Yorkshire, said: “A generation of potential first-time buyers patiently wait in rented accommodation.”[/i]

:lol:

I was actually considering changing my forum name to something like that! Perhaps: "Patiently Waiting"

Jeeez I'm in tune! B)

:lol:

Probably coz it is easier now, when we can see clearly the light at the end of the tunnel. We are almost there folks! 2011 may be much better than we hoped for! Lower housing costs are coming !

.

Edited by Tired of Waiting

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Could not agree more. I walked the dog for miles around the Gateshead - Low Fell area last Sunday and as I checked the asking prices online I can't really see how these shitholes can sell. Some probably get bought for cash by a slumlord and a dole family gets slotted in for a good income.

Tragic.

Yeah, yeah and yeah.

I can't believe that some people simply believe this is what houses should sell for, especially up in G'head/Newcastle where there's really very little substance to the local economy. Perhaps 1000-1500 jobs that are about to be lost between Ghead and Newcastle councils will help kick the ball in the right direction.

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Could not agree more. I walked the dog for miles around the Gateshead - Low Fell area last Sunday and as I checked the asking prices online I can't really see how these shitholes can sell. Some probably get bought for cash by a slumlord and a dole family gets slotted in for a good income.

Tragic.

There is a 2 up two down 2 bed in Burnley for £15K on yahoo, which feels expensive.... look at the crime map around it and its like downtown Baghdad but worse!

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True that. Prices still horrendously above what they should be in the North East. Pokey flats still going for 100k+, where, in reality, they should be going for 50-75k.

where, in reality, they should be going for 5-7.5k.

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There is a 2 up two down 2 bed in Burnley for £15K on yahoo, which feels expensive.... look at the crime map around it and its like downtown Baghdad but worse!

My local favourite is Port Clarence, near the Teesside nuclear power plant

http://www.rightmove.co.uk/property-for-sale/property-27665429.html

There was a house for sale there last year for £6,000 which was a total rip-off.

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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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      • Even
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      • up 5%



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