ken_ichikawa Posted June 22, 2011 Share Posted June 22, 2011 Was woken by the radio news today (classic FM), that almost all houses bought from 2005 on are in negative equity. Unfortunately they had a VI on who pretty much said not to worry house prices always go up :angry: Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted June 22, 2011 Share Posted June 22, 2011 (edited) House prices: four in five homes worth less than five years ago http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8590968/House-prices-four-in-five-homes-worth-less-than-five-years-ago.html Some 3.5 million properties, or 80pc, bought since 2006 are said to be "underwater", or worth less than their purchase price, according to a study by Zoopla.co.uk.But many owners are unwilling to lose money on their original purchases and are setting unrealistic asking prices, the property website said, resulting in them being "stuck" with their homes. People who bought at the peak of the market between 2007 and 2008 are the worst affected, with 93.2pc and 88.9pc respectively of homes bought during this period worth less now. The situation is worst in the North East, with 93pc of properties bought in the region since 2006 now worth less than what their owners paid for them. The average property was valued at £149,364 in June 2011, compared with £182,341 in the same month five years ago, Zoopla said. Nicholas Leeming, business development director at Zoopla.co.uk, said: "There is an unprecedented number of homeowners 'stuck' with homes they bought in recent years with the expectation that prices would continue to sky-rocket. And as a result of not wanting to take a loss on their asset, many owners have been unwilling to set realistic asking prices to sell them." A 2 bed house in Mumbles came on the market yesterday - London seller selling up - for 280K. It is 2 beds on a busy junction of a rat run... which is also a slight hill so lots of accelerating and braking at the junction... and as there is a school nearby there are massive speed bumps slight to the right... more braking.. more 'banging' of cars going up and down over speed bumps... It is 2 beds!!! Edited June 22, 2011 by The Masked Tulip Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 22, 2011 Author Share Posted June 22, 2011 Quick better introduce another government scheme, something like SFPPF (support for property price falls), and use the printing press to fund it. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 22, 2011 Author Share Posted June 22, 2011 Time for a rather apt song Quote Link to comment Share on other sites More sharing options...
Wait & See Posted June 22, 2011 Share Posted June 22, 2011 The only logical outcome when you pay over the odds for a falling down (new build) sh1tbox. Thats them FUBAR'd then, as the banks still wants their repayments every month for the next 20 years. I've got no sympathy tbh, as these were the kind of people laughing at the comments on housepricecrash back then and calling the posters idiots. Quote Link to comment Share on other sites More sharing options...
exiges Posted June 22, 2011 Share Posted June 22, 2011 Was woken by the radio news today (classic FM), that almost all houses bought from 2005 on are in negative equity. Really ? Not according to the houses I see for sale bought after 2005.. They still want purchase + 15% Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted June 22, 2011 Share Posted June 22, 2011 The only logical outcome when you pay over the odds for a falling down (new build) sh1tbox. Thats them FUBAR'd then, as the banks still wants their repayments every month for the next 20 years. I've got no sympathy tbh, as these were the kind of people laughing at the comments on housepricecrash back then and calling the posters idiots. I have come to the inclusion that we are idiots - just better informed idiots Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted June 22, 2011 Share Posted June 22, 2011 The only logical outcome when you pay over the odds for a falling down (new build) sh1tbox. Thats them FUBAR'd then, as the banks still wants their repayments every month for the next 20 years. I've got no sympathy tbh, as these were the kind of people laughing at the comments on housepricecrash back then and calling the posters idiots. +1 Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted June 22, 2011 Share Posted June 22, 2011 I have come to the inclusion that we are idiots - just better informed idiots Maybe, but sadly the information we have doesn't always pay off due to TPTB meddling in the markets. Quote Link to comment Share on other sites More sharing options...
snowflux Posted June 22, 2011 Share Posted June 22, 2011 Was woken by the radio news today (classic FM), that almost all houses bought from 2005 on are in negative equity. Unfortunately they had a VI on who pretty much said not to worry house prices always go up :angry: Not in negative equity, just worth less than their purchase price. Although some proportion of these are, of course, in negative equity. Quote Link to comment Share on other sites More sharing options...
General Melchett Posted June 22, 2011 Share Posted June 22, 2011 Really ? Not according to the houses I see for sale bought after 2005.. They still want purchase + 15% But, as we all know 'I want!' doesnt get. Quote Link to comment Share on other sites More sharing options...
exiges Posted June 22, 2011 Share Posted June 22, 2011 But, as we all know 'I want!' doesnt get. Seeing sold boards and sold prices around here I don't share your optimism Quote Link to comment Share on other sites More sharing options...
Kurgan Posted June 22, 2011 Share Posted June 22, 2011 Was woken by the radio news today (classic FM), that almost all houses bought from 2005 on are in negative equity. Unfortunately they had a VI on who pretty much said not to worry house prices always go up :angry: Either the bloke is an idiot, or you've mis- reported it. House price now being less than 2005 does not automatically mean Negative Equity. Quote Link to comment Share on other sites More sharing options...
General Melchett Posted June 22, 2011 Share Posted June 22, 2011 Seeing sold boards and sold prices around here I don't share your optimism I fully understand your point, and agree it is depressing. However, I think the telling thing will be how many of these sales actually complete. I suspect it will not be many, and that reality may start to dawn around December. That said, the market can remain delusional for a long a time. This we alos know to be true. Quote Link to comment Share on other sites More sharing options...
Lepista Posted June 22, 2011 Share Posted June 22, 2011 I've got no sympathy tbh, as these were the kind of people laughing at the comments on housepricecrash back then and calling the posters idiots. Exactly. Newbies oin this board take note - these people laughed down their noses at us. To be able to sit back and say I told you so isn't wishing ill on anybody who doesn't deserve it. They deserve every sleepless night they get. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 22, 2011 Share Posted June 22, 2011 Quick better introduce another government scheme, something like SFPPF (support for property price falls), and use the printing press to fund it. Nope..... Just flood the "market" with some more LIAR LOANS and watch the children play...... THAT is how it was done in the first place. Quote Link to comment Share on other sites More sharing options...
aa3 Posted June 22, 2011 Share Posted June 22, 2011 You can lose money shockingly fast on real estate. Many of these people bought like £500,000 pound houses. A relatively small 15% decline is £75,000 pounds vanished. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted June 22, 2011 Share Posted June 22, 2011 Even with 6 years of mortgage repayments? Quote Link to comment Share on other sites More sharing options...
Lepista Posted June 22, 2011 Share Posted June 22, 2011 Even with 6 years of mortgage repayments? ...Interest only. And don't forget the rampant MEW'ing. Quote Link to comment Share on other sites More sharing options...
arrgee1991 Posted June 22, 2011 Share Posted June 22, 2011 I fully understand your point, and agree it is depressing. However, I think the telling thing will be how many of these sales actually complete. I suspect it will not be many, and that reality may start to dawn around December. That said, the market can remain delusional for a long a time. This we also know to be true. +1 So many chains are collapsing. We were in one that collapsed last year that stopped us moving. And another house we were interested in came back on the market three times. A lot of buyers are falling very early in the process. Even in the chain that collapsed on us, the seller gave us more time to find another buyer as we were one of the few that had a mortgage in principle. Only trouble was we needed everything to go through very quickly and our buyer withdrawing meant we couldn't hope to get another in the time scales required. I think the delusion is disappearing. People who have been selling in our street this year have been amazed at lack of viewings. They can't believe we got asking price on first day of viewing last year, because it's not happening now Quote Link to comment Share on other sites More sharing options...
Riedquat Posted June 22, 2011 Share Posted June 22, 2011 I think the delusion is disappearing. People who have been selling in our street this year have been amazed at lack of viewings. They can't believe we got asking price on first day of viewing last year, because it's not happening now The delusion might be going but the desperation isn't. People will continue trying to put up ridiculous asking prices in the hope of attracting some of the nutters still around, or those who need to move regardles even if they're not in negative equity. Does anyone know what proportion of overall houses this is? Is the whole sticking thing being driven by a small number of desperates followed by a much greater number who bought earlier and aren't facing such a risk? They'll be clinging on for now but if they're a big enough proportion they'll eventually get fed up and drive the market down. That's my desperation. Quote Link to comment Share on other sites More sharing options...
arrgee1991 Posted June 22, 2011 Share Posted June 22, 2011 ... ridiculous asking prices in the hope of attracting some of the nutters still around... The nutters have pretty much disappeared. There will be a number of people asking peak prices as they don't have to sell, but there will be more who will be contemplating a downsize in order to keep a roof over their heads. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted June 22, 2011 Share Posted June 22, 2011 The nutters have pretty much disappeared. There will be a number of people asking peak prices as they don't have to sell, but there will be more who will be contemplating a downsize in order to keep a roof over their heads. +1 the local LL who bought every property on one side of the street for the last 7 years has run out of the bank's generosity. They've been upping the tenants rents - or trying to - not found out if they have succeeded yet though. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted June 22, 2011 Share Posted June 22, 2011 The nutters have pretty much disappeared. There will be a number of people asking peak prices as they don't have to sell, but there will be more who will be contemplating a downsize in order to keep a roof over their heads. I hope you're rght. My landlord certainly must think that they're still there, judging by what he's said he wants to sell the place for. I'm doing OK out of that at present (rent reduction to go with the inconvenience of him trying to sell it and in theory people looking around, and probably not going to sell it while prices go down), but I'd rather things just hurried up so I can move on. Quote Link to comment Share on other sites More sharing options...
arrgee1991 Posted June 22, 2011 Share Posted June 22, 2011 They've been upping the tenants rents - or trying to - not found out if they have succeeded yet though. My brother-in-law lets his old house and the previous tenants even took the aerial off the roof before disappearing with no notice. Guess they couldn't afford it any more. Probably run off home to ma & pa. Maybe there are some niche markets out there, but in the main it is clear that people are struggling. Quote Link to comment Share on other sites More sharing options...
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