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The Real State Of The Housing Market

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

So assuming it might go for about that compared to £500,000 giving a delusion value of about 1.33 which isn't that far from the current rightmove/nationwide delusion index quoted in another thread on HPC.

Edited by billybong

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

The difference between "needing to sell" and "wanting to sell".

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

Well, yes. But it cuts both ways, at least while ever the government continues propping it up, then if you need to buy then you have to pay the fantasy price.

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Well, yes. But it cuts both ways, at least while ever the government continues propping it up, then if you need to buy then you have to pay the fantasy price.

Why would anyone need to buy?

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Why would anyone need to buy?

Indeed, that is the golden question.

I rent a place 6 miles from work in a lovely part of outer London. cycle in every day and my rent is offset against falling prices/interest payments. (i intend to buy for cash when i take the plunge).

There is no 'need' to buy. But there is ingrained 'pressure' to buy - that is the British mentality.

Sit back and watch the show.

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There is no 'need' to buy. But there is ingrained 'pressure' to buy - that is the British mentality.

Sit back and watch the show.

And it's going to be a very good show over the next few years. Although interest rates won't go up now that the BoE have dropped inflation targets everything else that can effect the market will. There's going to be a long slow bloody crash that'll humble that buy now sentiment for generations.

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The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

I don't think that there's a single property in there that would interest me.

They're either places that I wouldn't live in if you paid me or are too expensive for what they are.

Where's all the decent auction bargains?

tim

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And it's going to be a very good show over the next few years. Although interest rates won't go up now that the BoE have dropped inflation targets everything else that can effect the market will. There's going to be a long slow bloody crash that'll humble that buy now sentiment for generations.

i don't agree that it'll be slow. We have just become accustomed to insane prices. Banks set prices, not people, nor estate agents. once this gets into the peoples mentality it will be carnage ----- IM ever-so-humble O of course.

banks do not bet on losing horses. Unless they can shoot the favourites.

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But too many people are buying at these crazy prices. Why?

Everytime I see a house I'm watching on RM go to SSTC, I despair. Who are these idiots, STOP BUYING, JUST WAIT!!!! :angry:

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i don't agree that it'll be slow. We have just become accustomed to insane prices. Banks set prices, not people, nor estate agents. once this gets into the peoples mentality it will be carnage ----- IM ever-so-humble O of course.

banks do not bet on losing horses. Unless they can shoot the favourites.

That was a joke right?

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There's a 2 bed bungalow on in Walton that I first saw at about 500k iirc, certainly at 450. Currently 335. I'd be tempted to look at 300, and buy at 250.

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And it's going to be a very good show over the next few years. Although interest rates won't go up now that the BoE have dropped inflation targets everything else that can effect the market will. There's going to be a long slow bloody crash that'll humble that buy now sentiment for generations.

how long have herad that one ? Is there really going to be a crash.. not seeing much of it in brighton

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

Thanks for the example.

Note though the property is in CHEADLE, near Manchester.

In Oxford, things are flat but definitely not off a cliff. Few months back, a few desperate buyers bid up a house that are worth £250k ish to £270k ish

Edited by easybetman

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how long have herad that one ? Is there really going to be a crash.. not seeing much of it in brighton

Brighton is in a bigger bubble than London, and a sh1thole to boot. Patience.

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

Update:

It didn't sell at June's auction. Perhaps they will have more luck in July. More twigs anyone?

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how long have herad that one ? Is there really going to be a crash.. not seeing much of it in brighton

It amazes me that people say this.

Are you really looking for evidence of drops before you say such drivel, or do you just like to torture yourself that prices wont fall?

Land registry shows that average prices in Brighton peaked in Nov 2007, bottomed in May 2009 at 20% below peak, then bounced back to about 5% below peak have now slid away again to sit about 10% below peak.

I would say that experience is fairly consistent with the national average and it astounds me that people say "nothing to see here!".

Brighton isnt special!!!!

Edited by Caveat Mortgagor

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As someone once wisely said on here (apologies but can't remember who), prices are set at the margins. The housing market is stagnant at the moment and not much is moving at all. I present exhibit A which shows clearly that for those who need to sell, the price of their asset does not come close to the inflated asking prices on rightmove.

Lot 30 went to auction in May with an asking price of £400,000 - £500,000 (May Auction). For those that don't attend auctions, guides are set just below the expected final selling price and they probably wanted £550,000 for this.

It is a beautiful looking house that looks in a good state. The location by the railway is far from ideal but otherwise, you can easily imagine seeing this price tag on rightmove and not being surprised. It didn't sell. The results said it was available at £435,000 for interested parties. Better move quick to grab a bargain, eh? Maybe not.

The same property obviously didn't attract much interest and is now up again just a month later as lot 35 with a guide of £375,000 (June Auction)

I think this property is a classic example of current market conditions. Those that need to sell realise the book value of their property is a fantasy and that the market has very different ideas.

Who needs 7 bedrooms and such a large detached house? It's more of a show off large property than what makes for a good family home, in that location.

It's a commercial property, a guest house, and has been for over 2 decades. It's also opposite a pub. Street View. I went to school on that road, and my brother another school on that road. Busy road, know of traffic accidents, and once saw a tall lamppost knocked down by a car just outside that house one time. Wouldn't want my kids going out on their bikes straight onto that main road, but would on a less expensive smaller home just off that road, on quieter Swann Lane for example, or Hill Top Ave. When prices come further down that is.

On that Guest House stretch of road there are no similar neighbouring houses, on that side. Some other commercial properties and just some terraces down to under the train bridge. If wanting it as a family home, at any auction you'd better be very certain you could turn it back to residential in advance of bidding over quarter of a million pounds. The seller hasn't finalised any application for residential. I'll take my chances on the open market above these risky and expensive properties at auction.

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Why would anyone need to buy?

I recommend this as hpc post of the year.

No one ever needs to buy, more and more sellers will need to sell. That tells us everything we need to know about the future of the market.

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  • 284 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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