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Record Jump In Level Of Unsold Properties - Indi

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Record jump in level of unsold properties

The housing market remains lodged in the doldrums, with the mismatch between property supply and demand leading to the biggest rise in unsold stock since May 2007, according to an analysis of estate agents' listings.

The latest April Rightmove House Price Index shows that the asking price of an average home climbed £134 a day in the last month, a jump of 1.7 per cent to £235,822. But increased seller numbers have not been matched by an increase in purchasers' ability to buy, the property website warned in the report published today.

It says new sellers are being "over-optimistic" in a month which saw the average unsold stock per estate agency branch climb from 70 to 74 properties. "With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents' books that we have recorded in nearly four years," Miles Shipside, the director of Rightmove, said.

While stock levels usually increase during the first half of the year, the current increase is larger than normal. During April, a weekly average of 28,390 properties came on the market, up 9 per cent on last year, and up 28 per cent on April 2009.

Mr Shipside warned that sellers will have to be more realistic if they hope to shift their homes, adding: "Those who are serious about selling should look to price more keenly in the spring selling season."

http://www.independent.co.uk/life-style/house-and-home/property/record-jump-in-level-of-unsold-properties-2269372.html

It's getting so constipated will we see EAs in a position where they have to beg sellers to lower prices to get enough sales to stay in business? It's going to be lovely to watch the EAs talk down the market :lol:

Edited by athom

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It's getting so constipated we seem to be in a position where EAs are having to beg sellers to lower prices to get enough sales to stay in business.

That's not what I'm seeing. Still only seeing most EAs being totally retarded. I've got a couple of examples from recent real life which have got me seething, but they similar to this example below from someone else. When are the estate agents going to begin managing expectations downwards?

My nan has just had her bungalow valued this morning (nice chap apparently) and he's recommended putting it on the market at £179,950. While that seems a decent amount, i think he might be being a bit 'eager' so to say. Nan bought the bungalow in Dec 06 for £176,500 , so to be given a valuation at slightly more than she paid for it in the current climate, i'm wondering if we're on the same planet or if i've missed something.
well, well, well,

Second agent came to view/value the bungalow and has also valued at £180,000 - £185,000, even said he'd be happy to try it at £190,000 .

http://forums.moneys...d.php?t=3170990

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That's not what I'm seeing. Still only seeing most EAs being totally retarded. I've got a couple of examples from recent real life which have got me seething, but they similar to this example below from someone else. When are the estate agents going to begin managing expectations downwards?

No i agree, but it seems the time will come when they will have to turn to talking it down in order to survive, at least some will and that could be enough to force others to follow.

Edited by athom

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I am still waiting to exchange but keep looking in my area (about 5-7 miles E of Brighton) and I am seeing reductions accross the market. Lots of bungalows that were £250,000 at the beginning of the year are sub-£225k and, for the first time, you can get 2 BR bunglaows below £200k.

If East Sussex is anything to go by the market has dropped 10% on average sofar this year. Looks like we are on for that 20% drop in 2011.

In my case, I offered £50k below asking (20% below) and the seller did the same deal with her seller so all were happy (except the end of the 2 house chain and they are in OZ anyway).

In this market sellers will have to face it: the market is CRASHING.

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I am still waiting to exchange but keep looking in my area (about 5-7 miles E of Brighton) and I am seeing reductions accross the market. Lots of bungalows that were £250,000 at the beginning of the year are sub-£225k and, for the first time, you can get 2 BR bunglaows below £200k.

If East Sussex is anything to go by the market has dropped 10% on average sofar this year. Looks like we are on for that 20% drop in 2011.

In my case, I offered £50k below asking (20% below) and the seller did the same deal with her seller so all were happy (except the end of the 2 house chain and they are in OZ anyway).

In this market sellers will have to face it: the market is CRASHING.

That's what i'm seeing near me, i've got saved searches on rightmove for purely academic interest at the moment and about 1/3 of "new properties in the search area" are actually notifications of price reductions (thanks property bee) and frequently it's a couple of months on the market and 10% off, another couple of months and it's down to 20% off, which has led me to believe very many sellers have been just trying it on and not really expecting to get those prices. Now if there was a rightmove index of asking price changes i'd like to see it but instead we get the pointless "new sellers asking prices" and not what they do after a couple of months. Not sure why EAs care so much what the prices are as long as they get some sales.

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http://www.rightmove.co.uk/news/house-price-index/april-2011

Very bearish report actually apart from the price increase which is not seasonally adjusted. Miles tells vendors to price lower than the competition to secure a sale.

MSM picking this up nicely http://news.google.co.uk/news/story?pz=1&cf=all&ned=uk&hl=en&topic=b&ncl=djPMkzc6PVT4zDMoLjXgcF6DRK70M

http://www.dailymail.co.uk/news/article-1378011/Overly-optimistic-sellers-raise-house-prices-1-7-market.html?ito=feeds-newsxml

Overly optimistic sellers raise house prices by 1.7%...but they’re still on the market

Might get some sellers questioning whether choosing an EA purely on the basis of who gives the highest valuation isn't perhaps the best way to sell.

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Got to be a trigger point where the asking prices (again) are so high the buyers walk away en masse - even if these prices drop back a bit or open to negotiation. Nothing like a bit of sticker shock to keep your hands in your pockets (or out of other people's as is more often the case).

Saw Diesel at 145.9 yesterday, with inflation ripping into eanings there is absolutely no justification whatsoever for raised pricing. Fingers crossed a lot of EAs will go bung over the next 12 months, needs a serious clear out.

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Saw Diesel at 145.9 yesterday...

No sh1t eh? I don't own a car, only two wheels for me, and that is shocking. There goes your pocket money for the cinema, etc...

Sounds like it's time to stock up on vegetable oil, I reckon you can get that for about £1 a litre if you shop smart.

Edited by cashinmattress

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MSM picking this up nicely http://news.google.co.uk/news/story?pz=1&cf=all&ned=uk&hl=en&topic=b&ncl=djPMkzc6PVT4zDMoLjXgcF6DRK70M

http://www.dailymail.co.uk/news/article-1378011/Overly-optimistic-sellers-raise-house-prices-1-7-market.html?ito=feeds-newsxml

Might get some sellers questioning whether choosing an EA purely on the basis of who gives the highest valuation isn't perhaps the best way to sell.

EA's should be forced to publish figures on the average difference between their valuation (to get the instruction) and the eventual sold price (the real value). They should be fined if the variance is too high (for overvaluing and putting the whole economy at risk)

They should also be forced to eat shit but that's another matter.

Edited by Reck B

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Got to be a trigger point where the asking prices (again) are so high the buyers walk away en masse - even if these prices drop back a bit or open to negotiation. Nothing like a bit of sticker shock to keep your hands in your pockets (or out of other people's as is more often the case).

Saw Diesel at 145.9 yesterday, with inflation ripping into eanings there is absolutely no justification whatsoever for raised pricing. Fingers crossed a lot of EAs will go bung over the next 12 months, needs a serious clear out.

The thing is estate agents know full well that these properties will not sell at their valuation, but they still want the business. So most price high above their competitors knowing that in two weeks or a month of no viewings they will then ring the vendor and start pressuring them to drop the price. I've seen many posts on MSE saying just this.

Also remember it's spring and this index is not seasonally adjusted so it will always and has always risen in spring. Wait until the summer lull in June/July/August then the non SA asking price indices will show some big falls.

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Suddenly got more houses view than time to go see them - six or eight, losing count. Saw one on Friday, another Saturday. WIll let them sweat for a week then make a derisory offer or two, may even get lucky.

Rather than just talking about it, all bears should be out there, spreading alarm and despondency among sellers in the unequal struggle against the massive resources of the VI's. There are thousands of us, the potential to have a beneficial influence is huge.

Imagine two or three people in succession tell you your house is only worth two thirds of what you're asking. House prices are based entirely on sentiment, and sentiment is a very fragile thing.

Get out there and fight back!

Edited by We’re all in this together

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The thing is estate agents know full well that these properties will not sell at their valuation, but they still want the business. So most price high above their competitors knowing that in two weeks or a month of no viewings they will then ring the vendor and start pressuring them to drop the price. I've seen many posts on MSE saying just this.

I don't see how this is going to change any time soon. Most vendors are always going to believe the EA who gives them the highest valuation - it's human nature.

Except in the case of the few truly realistic (or desperate) vendors, any EA giving it to them straight is not going to get the business.

At least, not until an EA valuing say no. 17 can point out that very similar properties nos. 19, 25, 37 and 43 all sold recently for a lot less than what the vendor fondly imagines his own is worth.

Edited by Mrs Bear

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Suddenly got more houses view than time to go see them - six or eight, losing count. Saw one on Friday, another Saturday. WIll let them sweat for a week then make a derisory offer or two, may even get lucky.

Rather than just talking about it, all bears should be out there, spreading alarm and despondency among sellers in the unequal struggle against the massive resources of the VI's. There are thousands of us, the potential to have a beneficial influence is huge.

Imagine two or three people in succession tell you your house is only worth two thirds of what you're asking. House prices are based entirely on sentiment, and sentiment is a very fragile thing.

Get out there and fight back!

Nah just creates false interest. If a vendor is getting viewings then they will happily wait it out for someone to come along and pay "what it's worth" even if they do a couple of laughable offers.

I won't be viewing until the asking price is within 15% of what I would actually be prepared to pay. Then I'll make my derisory offers. Nothing at that price currently though.

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EA's should be forced to publish figures on the average difference between their valuation (to get the instruction) and the eventual sold price (the real value). They should be fined if the variance is too high (for overvaluing and putting the whole economy at risk)

They should also be forced to eat shit but that's another matter.

Reck B for president

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http://www.independent.co.uk/life-style/house-and-home/property/record-jump-in-level-of-unsold-properties-2269372.html

It's getting so constipated will we see EAs in a position where they have to beg sellers to lower prices to get enough sales to stay in business? It's going to be lovely to watch the EAs talk down the market :lol:

This is no surprise; lots of the population still seem to be delusional regarding house prices. The bubble mentality is very strong in the UK and it will take years to break down.

Vendors will not reduce price as they genuinely believe some mug will come and buy their property.

There is a standoff between buyers and sellers, EA’s will have to start pushing reductions to stay in business. With IR pressure to come and buyers happily renting some vendors will begin to crack and force prices down.

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Got to be a trigger point where the asking prices (again) are so high the buyers walk away en masse - even if these prices drop back a bit or open to negotiation.

Happened around here (Shrops). According to Rightmove, there were 35 properties sold in my postcode in November, 19 in December, 18 in January and all of 4, yes 4, in February. That's less than one per EA branch in the high street. Currently there are 447 properties for sale in that postcode.

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This is no surprise; lots of the population still seem to be delusional regarding house prices.

This is true, but often it's because lots of the population basically don't know what's going on. If that sounds patronising then I should quickly add that myself and our partner sold last year and didn't have a clue what was going on with the market. In our defence we have a young baby, we were out of the country for a year 2008-2009 working in a pretty isolated place with no access to news media so the whole banking crisis thing just didn't really happen except as the occasional distant echo from chatting with a visitor etc etc.

I like to think we're reasonably savvy people and our flat was put on the market at a price that seemed toppish (recommended by EA of course) and we were very quick to cut the price when that didn't seem to work and eventually we sold - eventually it went for just less than 15% off the original asking price. That was definitely lower than I would have predicted, but as I have said we knew nothing. We just had other things to think about and deal with. Also we've always hated the whole ******** "my house cost X now it's worth Y blah blah blah" that afflicted so many people. "Not knowing" about property prices was a way of staying sane frankly. I think that's probably quite normal.

Having only just discovered HPC, I'm finding it a fascinating place but the level of knowledge here is way higher than average and I think it will take a fair while for some of this to work its way through to much of the population, especially in London where it's still pretty easy to rent your place out if you can't sell.

Anyway, for what it's worth, our experience was that EAs are talking prices up, buyers for ex-council properties in London are almost exclusively BTLers, the price at the bottom end (i.e. ex-council) is clearly on its way down in London (our 15% discount was from a price that was achieved in an identical flat in 2009, albeit one that had better kitchen and bathroom).

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No sh1t eh? I don't own a car, only two wheels for me, and that is shocking. There goes your pocket money for the cinema, etc...

Sounds like it's time to stock up on vegetable oil, I reckon you can get that for about £1 a litre if you shop smart.

A money saving tip for you.

Sell one of your unicycles.

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I don't see how this is going to change any time soon. Most vendors are always going to believe the EA who gives them the highest valuation - it's human nature.

Except in the case of the few truly realistic (or desperate) vendors, any EA giving it to them straight is not going to get the business.

At least, not until an EA valuing say no. 17 can point out that very similar properties nos. 19, 25, 37 and 43 all sold recently for a lot less than what the vendor fondly imagines his own is worth.

An EA has two choices - they can either talk the buyer up or vendor down. Given that buyers do not have access to anything like the levels of finance which supported these prices, they are left with one option - talk the vendors down.

Of course some will not realise this - they will probably go out of business.

The ones that survive will have less competition and thus less need to inflate asking prices to win business.

I should add that the majority of vendors do not follow the housing market like we on HPC do and they will more than likely take an EAs advice (not always obviously) so it is up to EAs themselves how long their pain goes on for.

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  • 277 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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