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Swansea-State Of The Market


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There are more and more drops this week. Looks like something is beginning to snowball.What happens when Aug/Sept comes and goes?

Not many drops (significant ones anyway) in the areas I am looking at..Are you using PB or home.co.uk to track price reductions?

On a more positive note-did yet another viewing with one of the big (biggest?) agents in Swansea last weekend. The house itself was s**t and worth nowehere near asking but the EA who showed us around was very sensible (the second one I have come across in as many weeks) and commented that the few places that are selling at the moment are doing so at a 15-20% discount on initial asking prices. He strongly advised to put in offers at least 20% off asking as the survey was likely to come out with a lower valuation anyway. He even cited a few examples of recent sales that had completed at significant discounts but I don`t want to post them on here as it won`t be fair on him...

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BBC News 24 just doing a live report from Wales saying that 1 in 3 jobs in Swansea are public sector and that the job cuts have not yet begun.

Wales now has the highest level of unemployment in the UK with fears that it will rise substantially next year.

Private Sector is so small in Wales that it is a real issue to this country.

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Why the other EA's are expecting anything in September is beyond me. There will probably be a lot of new instructions racing to get on the market before Winter sets in or before jobs are lost, but it all depends on what prices they are asking.

I personally don't see the market improving although we will start pushing sales shortly to become highly involved in the sales market, but with a long term plan to follow. Basically set ourselves up for sometime around 2015 (or later) when sales begin to occur on a more regular basis :D and it is worth the money spent on advertising.

For the immediate future we will be mainly spend money on improvements to the whole letting side of the business because I want to make sure that we are one of (if not the) best letting agents around. I think we do very well at the moment and have a large share of the lettings market, but there are lots of improvements to be made otherwise we would just be like every other agent.

My business partner for some reason is desperate for us to force our way in to the market down West, but I don't see the point at all. Well not in todays market. I'm happy dealing with easy sales at the lower end of the market and investment deals.

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My business partner for some reason is desperate for us to force our way in to the market down West, but I don't see the point at all. Well not in todays market. I'm happy dealing with easy sales at the lower end of the market and investment deals.

Sounds like a lot of EA grief in Swansea West at the moment.

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If that's in the West, what's happening in the East??? :unsure:

Nah, I was answering SPA. I meant to say that it sounds like a lot of grief to be an EA in the West at the moment. You have to compete with other EAs handing out IMPO ludicrous valuations, then you have to market, get viewings, etc, etc, whilst being faced with sellers in complete denial who assume their 3 bed semi is worth 300K plus.

Nuts.

Why have the grief?

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This house would not reduce the price and now it has been repossessed see. I wonder why so many sellers are going to allow this to happen to them very soon, all they have got to do is reduce!

They probably could not reduce do to a lack of equity like so many vendors at the moment.

I don't think banks will repossess too many for a while although they probably could do with a large amount of properties. It would cripple the banks and the UK in the current climate.

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They probably could not reduce do to a lack of equity like so many vendors at the moment.

I don't think banks will repossess too many for a while although they probably could do with a large amount of properties. It would cripple the banks and the UK in the current climate.

I thought it was better to sell at a very reduced price than to have it repossessed, the house was first listed at £575K then reduced to £499K now that it has been repossessed it being marketed at £399K so now what happens to the equity that was preventing them from reducing the price in the first place. If they took out equity some time past due to a perceived future price increase...they should not expect me to pay off that loan for them...i am sorry

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Funny you should mention that.

Was talking yesterday to one of the, ahem, pricier asking pricing, IMPO, Swansea West EAs. This is what I was told.

...

Seems they are relying on September being a boom month.

I wonder why? We have just this week moved house and the removals firm was telling us August is their busiest month, getting all the families moved before the new school year starts; an EA acquaintance was telling me that his busiest time is post-New Year when so many people are splitting up and selling to buy two smaller properties. No, really. Anyway, can't see any great reason for expecting a boom in Sept... am I missing something?

Great post though, and great news TMT - thanks.

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I wonder why? We have just this week moved house and the removals firm was telling us August is their busiest month, getting all the families moved before the new school year starts; an EA acquaintance was telling me that his busiest time is post-New Year when so many people are splitting up and selling to buy two smaller properties. No, really. Anyway, can't see any great reason for expecting a boom in Sept... am I missing something?

Great post though, and great news TMT - thanks.

Just FUD by Swansea EAs if you ask me. An excuse.

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I thought it was better to sell at a very reduced price than to have it repossessed, the house was first listed at £575K then reduced to £499K now that it has been repossessed it being marketed at £399K so now what happens to the equity that was preventing them from reducing the price in the first place. If they took out equity some time past due to a perceived future price increase...they should not expect me to pay off that loan for them...i am sorry

Depends on circumstances really. Maybe the vendors decided to go bust once they found out that they could not sell at a certain price which might have cleared debts.

Possibly they had buyers, but nobody could get a mortgage above £400 on the property and the vendor needed x amount to clear mortgage and debt. Repayments were possibly crippling the vendor and just gave up trying to get clear of debt, so went bust.

The above is the most likely scenario and a position that many seem to be in.

It might not have been debt though other than the mortgage. Perhaps they were just being greedy although I imagine they owed around £500k. The bank will obviously not be able to sell it at the price required to recover the mortgage arrears, but potentially enough to clear the debt less the interest or take a hit. The problem is banks can't keep taking these kind of hits.

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Have seen a few Dawsons for sale signs with 'offers over X' across the centre. Sounds like depseration IMPO.

TMT

Have you been up to see those houses in Clyne Gardens? They are up for sale with John Francis

http://www.johnfrancis.co.uk/propertysale.htm

If I recall correctly were these properties £600k plus when they first went on the market a few years ago, only by chance come across them and shocked to see them under £450k, spoke to someone from the area today and by all accounts they are now in the hands of the bank as the developer went through twice, this may of been discussed before but been out of the Swansea market for so long have not been in touch with what has been going on down there....

He also told me that a couple of people he knows have put in offers for less than £300k and by all accounts they have come back and said they will consider offers around £400k.

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TMT

Have you been up to see those houses in Clyne Gardens? They are up for sale with John Francis

http://www.johnfrancis.co.uk/propertysale.htm

If I recall correctly were these properties £600k plus when they first went on the market a few years ago, only by chance come across them and shocked to see them under £450k, spoke to someone from the area today and by all accounts they are now in the hands of the bank as the developer went through twice, this may of been discussed before but been out of the Swansea market for so long have not been in touch with what has been going on down there....

He also told me that a couple of people he knows have put in offers for less than £300k and by all accounts they have come back and said they will consider offers around £400k.

They have been much discussed on here. Several HPCers have visited them. I have talked to EAs about them. I have had EAs say really negative things to me about them.

400K? I wouldn't give you 250K for one - go and have a look for yourself. You might be surprised at what you find.

Just because they were marketed at 600K does not mean they were worth it. Just because some banks wants 400K for them does not mean they are worth 400K. As I say, I would not give 250K for one.

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In the pub last night I was told by an EA of numerous SSTC's in Swansea West falling through this week due to mainly the banks undervaluing the offer price on houses.

As what little offers, so I was told, are coming in well below asking now - often 20% below asking - it makes you think.

I was told that in virtually all cases the sellers refused to go lower on price despite the fact that they are now reliant on a cash buyer who is a mug or a different bank being more generous.

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In the pub last night I was told by an EA of numerous SSTC's in Swansea West falling through this week due to mainly the banks undervaluing the offer price on houses.

As what little offers, so I was told, are coming in well below asking now - often 20% below asking - it makes you think.

I was told that in virtually all cases the sellers refused to go lower on price despite the fact that they are now reliant on a cash buyer who is a mug or a different bank being more generous.

It makes you wonder whether they are just being greedy or whether they actually need the money, ie large mortgages to discharge etc

I have stopped viewing. How they think they are going to sell for more than 07 prices is beyond me.

Looking at some houses for sale in Sketty they appear to be asking for more than top of the market prices??? Is Sketty classed as Swansea west or north?

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It makes you wonder whether they are just being greedy or whether they actually need the money, ie large mortgages to discharge etc

I have stopped viewing. How they think they are going to sell for more than 07 prices is beyond me.

Looking at some houses for sale in Sketty they appear to be asking for more than top of the market prices??? Is Sketty classed as Swansea west or north?

I told a few EAs that I like this week that after the first week of Sept I am no longer viewing if there are no serious price drops. What is the point.

Sketty is Swansea West. I am told that several SSTC fell through in the past week in the Sketty area, amongst others. "Sketty / Derwen Fawr is very over-valued now," is what one EA in a major chain told me. He said that the asking prices need to come down considerably.

There are a few houses on in Derwen Fawr for circa 350K asking that last year were having asking prices of circa 300K - I can only assume that they have added a £1,000 per week simply because another year has gone buy. One EA told me that those 350K houses should be worth no more than 275K but that if one EA will not give a high valuation then another one will.

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It makes you wonder whether they are just being greedy or whether they actually need the money, ie large mortgages to discharge etc

I have stopped viewing. How they think they are going to sell for more than 07 prices is beyond me.

Looking at some houses for sale in Sketty they appear to be asking for more than top of the market prices??? Is Sketty classed as Swansea west or north?

The last house I viewed was purchased in the early 90's when I spoke the unusually honest EA she told me that the vendors couldn't lower the price as they need to cover the mortgage, to which i replied "I'm not in the business of paying off someones debt"

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Everyone I know who is looking to buy in Swansea has now decided to put off buying due to the ludicrous asking prices.

I think the city needs a dose of reality, needs the public sector cuts to kick in and people to see some actual pain from the recession. The public sector has insulated the place far too long.

I keep looking at one EA firm in Swansea West and wonder when they are going to run out of wall space for all the houses they have listed? I wonder if lots of people will take their houses off the market by October or whether they will keep them on during the winter?

Edit:

Wonder if we will see any substantial price drops on asking prices now that the Summer is almost over? I noticed on globrix this week a house with a ONE PERCENT asking price drop from Dawsons in Sketty - I mean, why bother?

When I see those ONE PERCENT drops listed on globrix I just laugh - how much time and effort does it take to get someone to drop by JUST ONE PERCENT? What the feck is going on there?

Is it truly worth the time it takes to get someone to drop by JUST ONE PERCENT? I would love to listen in on those conversations between EAs and sellers.

If a house is not selling, or perhaps it is not getting any viewings, then clearly it is over-priced IMPO so who on earth thinks that a ONE PERCENT drop in asking price is going to make a difference? Or is it just an opportunity to stick a 'Price Reduced' sticker on a photo?

I have been in other EA firms listening to EAs talking to sellers asking them to take 10% and even 15% off their asking prices. ONE PERCENT - joke IMPO.

Drops should now be 10%, 15% or 20% to get buyers in.

Edited by The Masked Tulip
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Everyone I know who is looking to buy in Swansea has now decided to put off buying due to the ludicrous asking prices.

I think the city needs a dose of reality, needs the public sector cuts to kick in and people to see some actual pain from the recession. The public sector has insulated the place far too long.

I keep looking at one EA firm in Swansea West and wonder when they are going to run out of wall space for all the houses they have listed? I wonder if lots of people will take their houses off the market by October or whether they will keep them on during the winter?

Edit:

Wonder if we will see any substantial price drops on asking prices now that the Summer is almost over? I noticed on globrix this week a house with a ONE PERCENT asking price drop from Dawsons in Sketty - I mean, why bother?

When I see those ONE PERCENT drops listed on globrix I just laugh - how much time and effort does it take to get someone to drop by JUST ONE PERCENT? What the feck is going on there?

Is it truly worth the time it takes to get someone to drop by JUST ONE PERCENT? I would love to listen in on those conversations between EAs and sellers.

If a house is not selling, or perhaps it is not getting any viewings, then clearly it is over-priced IMPO so who on earth thinks that a ONE PERCENT drop in asking price is going to make a difference? Or is it just an opportunity to stick a 'Price Reduced' sticker on a photo?

I have been in other EA firms listening to EAs talking to sellers asking them to take 10% and even 15% off their asking prices. ONE PERCENT - joke IMPO.

Drops should now be 10%, 15% or 20% to get buyers in.

I hear you!

Houseprices make no sense in relation to the local economy. But Im not sure a 20% drop would be enough to convince me to part with swansea west type money.

Even with a 20% drop I still dont see where the jobs are in swansea to make a house purchase palatable.

Im coming to the conclusion (again) that there is no future for me in the UK.

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I hear you!

Houseprices make no sense in relation to the local economy. But Im not sure a 20% drop would be enough to convince me to part with swansea west type money.

Even with a 20% drop I still dont see where the jobs are in swansea to make a house purchase palatable.

Im coming to the conclusion (again) that there is no future for me in the UK.

+1

I keep thinking "Do I want to be here?" and "Can I afford to be here?"

OK if you are a Medic or a lawyer or highish in the public sector but for everyone else. Hmmm...

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+1

I keep thinking "Do I want to be here?" and "Can I afford to be here?"

OK if you are a Medic or a lawyer or highish in the public sector but for everyone else. Hmmm...

Yep. IMHO prices need to fall 30 - 40% to make me buy.

House prices are seriously out of touch with wages. I remember growing up in Bishopston, a lot of our neighbours were teachers, this was circa 30 years ago. Do you think teachers could afford to live there nowadays, unlikely.

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Yep. IMHO prices need to fall 30 - 40% to make me buy.

House prices are seriously out of touch with wages. I remember growing up in Bishopston, a lot of our neighbours were teachers, this was circa 30 years ago. Do you think teachers could afford to live there nowadays, unlikely.

Twirly - why don't you enable your messenger client in your settings? You should have enough posts by now to be able to send and receive private messages?

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  • 433 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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