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Rics Report May 2011 -43

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Nice quote here:

Alex McNeil MRICS, Bramleys,

Huddersfield, West Yorkshire, 01484

530361 - We can blame lenders and

the lack of mortgage products for the

current market malaise, but we must

also look closer to home as too much

new housing stock coming onto the

market is over priced, creating high

vendor expectations.

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Bronagh Boyd MRICS, Digney Boyd,

Newry, Co.Down, 028 30 833233 -

Buyer demand is on the increase with

an increased supply of property coming

to the market. Prices appear to have

bottomed out. Mortgage lending is still

relatively slow, but all the high street

banks are advising they are back in the

market.

I don't know where to begin with tearing this statement to pieces. Firstly buyer demand does not increase as more stock hits the market, there is already a huge oversupply of properties in every area and that has not enticed buyers. Further supply does not lead to increased sales, it simply increases the supply to demand ratio, leading to an essential lowering of asking prices to achieve any sales - economics 101.

Prices appear to have bottomed out - Poor Bronagh is among an increasingly small group of EAs and Surveyors still holding onto this idea that we have hit the bottom. The realistic ones, of which there are more and more each week, can see that prices are dropping daily and this is leading to sales, which is good for all.

Finally the statement that High Street Banks have now announced they are back in the market makes me laugh. From my contacts relatively high up in some of the banks there hasnt been any significant loosening of the purse strings and they never exited the market in the first place so you cant announce with a fanfare that they are back to save the day. Its the same situation as last month and the month before. Banks will lend if you have a sizeable deposit, strong earnings in relation to the mortgage payments and a clean credit history. Plus the house has to value up at the surveyors price so no point trying to sell a house at unrealistic prices as it will be shot down by the mortgage company.

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RICS from 2009. Even back then they were using the phrase "the market has bottomed out" :lol:

http://www.belfasttelegraph.co.uk/business/business-news/northern-ireland-house-prices--fresh-signs-of-stability-14404969.html

Nice, they really do like that statement, searching the Belfast telegraph from "bottomed out" gives a catalog of fail from the VIs over the past few years.

Helen C article from July 2008:

Mr McLarnon said: "House prices were too high and people do sympathise with first-time buyers trying to get started. I think we are seeing the green shoots of recovery and hopefully prices here have bottomed out."

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Nice, they really do like that statement, searching the Belfast telegraph from "bottomed out" gives a catalog of fail from the VIs over the past few years.

Helen C article from July 2008:

Mr McLarnon said: "House prices were too high and people do sympathise with first-time buyers trying to get started. I think we are seeing the green shoots of recovery and hopefully prices here have bottomed out."

The only 'bottoms' they need to worry about are the ones that they all talk out of ...

Rule number 1 for these folk must consist of learning to walk on hands and teaching rear ends to talk!!

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I don't know where to begin with tearing this statement to pieces. Firstly buyer demand does not increase as more stock hits the market, there is already a huge oversupply of properties in every area and that has not enticed buyers. Further supply does not lead to increased sales, it simply increases the supply to demand ratio, leading to an essential lowering of asking prices to achieve any sales - economics 101.

Prices appear to have bottomed out - Poor Bronagh is among an increasingly small group of EAs and Surveyors still holding onto this idea that we have hit the bottom. The realistic ones, of which there are more and more each week, can see that prices are dropping daily and this is leading to sales, which is good for all.

Finally the statement that High Street Banks have now announced they are back in the market makes me laugh. From my contacts relatively high up in some of the banks there hasnt been any significant loosening of the purse strings and they never exited the market in the first place so you cant announce with a fanfare that they are back to save the day. Its the same situation as last month and the month before. Banks will lend if you have a sizeable deposit, strong earnings in relation to the mortgage payments and a clean credit history. Plus the house has to value up at the surveyors price so no point trying to sell a house at unrealistic prices as it will be shot down by the mortgage company.

Agreed ... this misconception that lack of MTG's are to blame is a nonsense. I accept that the free availability of MTG's to anyone and everyone during the boom period are a big part of the blame for the mess the market is in. The fact that these are no longer freely available is a good thing ... and saves many folk from themselves to be honest!

At the end of the day if someone see's a house and it stacks up in terms of their affordability, they should have no problem finding a MTG provider willing to lend them the money. OK ... there may be fewer options, but they only need 1 MTG from 1 MTG provider.

I have given up on most EA's (in my area anyway) ... if the industry recognises that current market prices are 50% down on peak, then for me that should be their valuation. Its hardly rocket science. Whether you agree as to whether or not this is still affordable or not is a side issue. The reports that they live and die by ... and contribute to ... all point towards this figure but yet new properties come onto the market 20-30% higher than this. Its just madness and takes stupidity onto a whole new level. What is the point in it really???

I would actually consider going to view some houses if they came on at 50% drop levels ... but when they come on overpriced at the levels they continue to daily, I dont even bother looking at them so all that it achieves is to put potential buyers off IMO.

EA's are not the only ones to blame. Developers have stalled in their own drops and I would question if they are supposedly leading the way for drops here then where is the recent evidence of these passing on 50% drops... £120k appears to be the average asking price for a townhouse ... c'mon your having a laugh!!

Edited by tinbin

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Agreed ... this misconception that lack of MTG's are to blame is a nonsense. I accept that the free availability of MTG's to anyone and everyone during the boom period are a big part of the blame for the mess the market is in. The fact that these are no longer freely available is a good thing ... and saves many folk from themselves to be honest!

At the end of the day if someone see's a house and it stacks up in terms of their affordability, they should have no problem finding a MTG provider willing to lend them the money. OK ... there may be fewer options, but they only need 1 MTG from 1 MTG provider.

I have given up on most EA's (in my area anyway) ... if the industry recognises that current market prices are 50% down on peak, then for me that should be their valuation. Its hardly rocket science. Whether you agree as to whether or not this is still affordable or not is a side issue. The reports that they live and die by ... and contribute to ... all point towards this figure but yet new properties come onto the market 20-30% higher than this. Its just madness and takes stupidity onto a whole new level. What is the point in it really???

I would actually consider going to view some houses if they came on at 50% drop levels ... but when they come on overpriced at the levels they continue to daily, I dont even bother looking at them so all that it achieves is to put potential buyers off IMO.

EA's are not the only ones to blame. Developers have stalled in their own drops and I would question if they are supposedly leading the way for drops here then where is the recent evidence of these passing on 50% drops... £120k appears to be the average asking price for a townhouse ... c'mon your having a laugh!!

Great post.

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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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