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Swansea-State Of The Market


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The reason they are so high is because Wales is not a large country (especially south west wales), if you have a bit of money and want to live in this part of Wales and have a number must haves on your shopping list i.e. by the Sea with green fields only a stone throw away, lowish crime, good infrastructure, fairly well paid jobs (for wales) and many businesses then your choices are quite limited, your probably looking at 5% if not less.

Like I say I was down there recently and prices aside must say that from the Woodman pub onwards the whole areas is v. attractive for those looking for property, v. impressed with the sea front and the cycle track, well kept and pleasing on the eye. Mumbles also a lot cleaner than when I was last there.

I think if your a Welsh lad you is looking to return to Wales or move to one of the better parts you would be hard pushed to beat that part of Swansea.

Tenby again v.nice but some where for me personally when I get past that 60 figure and look to move to the slow lane, you either need bags of money, work from home or in the public sector down there as there is not much else, but the way of life is superb and surprisingly very few nice property available which I suppose does keep prices higher and v tight planning laws from what I have seen and heard.

You absolutely right, mumbles is a great place to live but it's overpriced. It's always been nice, its always commanded higher prices than elswhere in swansea but it's the same place as it was 10 years ago, climate hasn't changed, infrastructure hasn't changed, even the population hasn't changed much over the past 10 years. the only change in the past 10 years has been a credit fuelled bubble which trebled the average house price in sa3 in a short 7 year period from 2000 to 2007. Although Wales may be small, the population density is much lower than most places like the SE of England and therefore the number of potential buyers is far smaller. Prices will crash or people will not sell their houses. For example I'm in looking to move down there at moment, realistically I can afford up to 600k max but at the moment the sort of houses that are currently on for that figure I think are worth 400k. For me it doesn't make financial sense to buy one of those overpriced properties particularly as I can rent one for much cheaper than even the interest on the capital. This year, instead of moving I kept my house which is just outside of swansea, rented a house a few yards from Langland beach and it's still cheaper than buying!

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FWIW, talking to an EA contact last night.

Told me that the market is dire.

Said that most offers were coming in 20% below asking but every now and then some really stupid buyer makes an offer 1K below asking and thinks that they are driving a hard bargain.

Said that the stupidest buyers were doctors/surgeons who seem to have no idea how bad the market is or how to buy a house as these were mostly the ones putting in almost full asking price offers... but that they were thin on the ground anyhow and as most still need a mortgage they - the EAs - know that the bank's valuation will come in substantially less.

Out and about today I noticed quite a few houses with both a 'for sale' and a 'to let' sign side by side in the gardens - a few in Sketty, Derwen Fawr and Mumbles.

I was told that a boss of one EA firm has bought one of the 3 storey terraces in Mumbles and that colleagues were allegedly biting their tongues thinking that he had paid way over the odds in their opinion, especially as there are 2 houses nearby currently which are both for sale and to let - whichever comes first I guess.

House a few doors away from me which has a big SOLD sign on it since about June stil has the SOLD sign but I am informed that the bank turned down the mortgage after the survey was done. The buyers have now pulled out.

Edited by The Masked Tulip
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alot of my dr friends have very large deposits in addition to making (so far as swansea is concerned) a very good income.All of these, with no exeption, are simply refusing to pay the crazy prices in west swnsea.As the discussion has mentioned west is best, however west was best 7-8 years ago when prices were half of what they are now.Incomes have not gone up 50% in the medical/legal world in these times, do the math as they say.

People can afford these prices but the sensible ones do not want to put all their eggs in one basket - most would rather money for living, holidays, holiday homes abroad rarther spend 600k on a farly motest detached house perhaps just a mile from where they are living now.

Most people who bought into the bubble are finished, they will not get a new competitive mortage rate as the banks will not lend, no holidays, no eating out all just to live in an overpriced house.Mad.

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alot of my dr friends have very large deposits in addition to making (so far as swansea is concerned) a very good income.All of these, with no exeption, are simply refusing to pay the crazy prices in west swnsea.As the discussion has mentioned west is best, however west was best 7-8 years ago when prices were half of what they are now.Incomes have not gone up 50% in the medical/legal world in these times, do the math as they say.

People can afford these prices but the sensible ones do not want to put all their eggs in one basket - most would rather money for living, holidays, holiday homes abroad rarther spend 600k on a farly motest detached house perhaps just a mile from where they are living now.

Most people who bought into the bubble are finished, they will not get a new competitive mortage rate as the banks will not lend, no holidays, no eating out all just to live in an overpriced house.Mad.

I viewed a 3 bed semi - no driveway - in Swansea West recently on for 270K asking - it had been on for 300K asking and the couple have modernised the bottom floor of the house up really nice.

But they admitted to me that they would still be paying off the mortgage into their 70s. So they are planning to downsize by buying a much smaller house or flat.

Problem is, they bought at the height of the boom when other houses were going for 300K in the road. They originally wanted 300K but have now dropped to 270K asking but are only prepared to take another 3K or 4 K off.

They had spent a lot - granite kitchen tops, open real fires, opened up the rooms, etc, new bathroom and it looks like a typical Swansea West job of buying during the boom, doing it up and then looking to sell it on for a tidy profit. They said they had spent 50K doing it up.

Upstairs they had modernised partially by doing up the main bedroom and the bathroom but had clearly either run out of money or had just got fed up doing it.

It is not within walkable distant of any shops and as it is halfway up West Cross you have a steep walk up the hill if you ever go out walking, cycling, jogging, etc, along the front and then return home.

So they want 270K but absolute tops I can't see it being worth more than 230K even with what they have done. Friends said that it was 240K tops but probably should be on for 240K with someone paying less to buy it.

Have to say, it is one of the few houses that I felt I could move into and not have much to do - obviously - as it has been done up - but it ain't a 270K house IMPO by a long shot.

Most of the people living in Swansea West could not afford to buy there nowadays - they were just lucky to buy in before the bubble. But there are plenty who have bought in the bubble years and they are just still asking too much but you understand why when they have such debt.

Have to say, I was in one EA branch this week and a couple were in there looking to buy and they seemed to have not a clue about even what kind of house they wanted or where they wanted it. They were arranging viewings from 200K to 400K from Sketty through to Mumbles. They seemed a lovely couple but they gave the impression that they were just not clued up about how to go buying a house or what the local housing market was like. What I mean is - there are still plenty of arguably naive buyers out there.

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I agree that most of the stuff in West Swansea is overpriced - and I'm not even talking about the most expensive parts of town. Anywhere central or to the west of the centre is just too expensive and beyond any sensible salary multiple for most of the resonably well paid (by Swansea standards) public sector workers who might be looking in these areas.

As an off topic side note... does anyone have any idea of the sorts of LTV ratios that banks are actualy lending at for property in Swansea? I know you can get an agreement in principle at 90% LTV for all of the highstreet banks, but on the news tonight there was this story about Conwy council's plan to underwrite FTB loans where a lot of people were complaining about being offered a maximum of 75 - 80%.

Cheers.

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As an off topic side note... does anyone have any idea of the sorts of LTV ratios that banks are actualy lending at for property in Swansea? I know you can get an agreement in principle at 90% LTV for all of the highstreet banks, but on the news tonight there was this story about Conwy council's plan to underwrite FTB loans where a lot of people were complaining about being offered a maximum of 75 - 80%.

Cheers.

I have had at least 3 EAs tell me that some of the banks are agreeing up to 90% mortgages in principle, taking fees to arrange the mortgage and also a fee for the survey but then, when it comes to the survey, they are finding any excuse, from the offer price being well above the bank survey valuation through to knotweed half a mile down the road, to turn down the mortgage.

I have no idea if this is going on or not but it was what I was told with the EAs suggesting that this was a nice earner, allegedly, for some of the banks.

As I have heard it from more than one EA I suspect it is either possible or just some folklore doing the EA rounds.

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FWIW, talking to an EA contact last night.

Told me that the market is dire.

Said that most offers were coming in 20% below asking but every now and then some really stupid buyer makes an offer 1K below asking and thinks that they are driving a hard bargain.

TMT did you mean to say 100K below asking or you actually meant the 1K below asking?
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TMT did you mean to say 100K below asking or you actually meant the 1K below asking?

1K.

There are still numpties out there who think that offering 1K below asking is somehow driving a hard bargain.

This is despite numerous EAs telling me the market is dire and all the indices pointing down for house prices, banks not lending, etc, etc, etc. EAs are telling me that offers are coming in 20% below asking nowadays.

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There seem to be loads of houses for sale in the west cross area. Im not keen on WC myself.

Nor am I. No shops nearby so a car journey for everything. No parks and a steep hill to walk back up if you go down the prom.

I'd rather Sketty or Killay than West X.

I was talking to an EA in Mumbles this morning who confided that virtually nothing is selling. Told me they are worried about how quiet September is because they were hoping that Sept would be one of their best months. Reckoned that if people do not drop their asking prices now they are not going to sell in 2011.

Told me, as a cash buyer, to put in 20% below asking price. Said some are keen to sell and low offers would help convince those in denial to drop their asking price. Also had some very strong firms about a competitor EA in the area who it is felt by his firm tremendously over-values.

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Nor am I. No shops nearby so a car journey for everything. No parks and a steep hill to walk back up if you go down the prom.

I'd rather Sketty or Killay than West X.

I was talking to an EA in Mumbles this morning who confided that virtually nothing is selling. Told me they are worried about how quiet September is because they were hoping that Sept would be one of their best months. Reckoned that if people do not drop their asking prices now they are not going to sell in 2011.

Told me, as a cash buyer, to put in 20% below asking price. Said some are keen to sell and low offers would help convince those in denial to drop their asking price. Also had some very strong firms about a competitor EA in the area who it is felt by his firm tremendously over-values.

It's a open secret that some EA overvalue to get the instruction, then set about working to get vendors asking price down. I actually viewed a house on at an asking price of 670k (down from 830k),I said to the EA it needed a lot of work and the EA immediately said that the price would be reducing to 500k in a few weeks. The property then came off the Market and reappeared a couple of weeks later with a different agent at 570k. 260k off initial asking price in less than a year!

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Nor am I. No shops nearby so a car journey for everything. No parks and a steep hill to walk back up if you go down the prom.

I'd rather Sketty or Killay than West X.

I was talking to an EA in Mumbles this morning who confided that virtually nothing is selling. Told me they are worried about how quiet September is because they were hoping that Sept would be one of their best months. Reckoned that if people do not drop their asking prices now they are not going to sell in 2011.

Told me, as a cash buyer, to put in 20% below asking price. Said some are keen to sell and low offers would help convince those in denial to drop their asking price. Also had some very strong firms about a competitor EA in the area who it is felt by his firm tremendously over-values.

Yep me too.I dont want to live somewhere where I have to get in the car to go anywhere. Faceless houses in a heartless maze of concrete. It is important for me to live somewhere where I can easily walk/cycle to shops, beach etc.

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It's a open secret that some EA overvalue to get the instruction, then set about working to get vendors asking price down. I actually viewed a house on at an asking price of 670k (down from 830k),I said to the EA it needed a lot of work and the EA immediately said that the price would be reducing to 500k in a few weeks. The property then came off the Market and reappeared a couple of weeks later with a different agent at 570k. 260k off initial asking price in less than a year!

Article just released about EA's that over-value will be in Breach of the law.

Article

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Article just released about EA's that over-value will be in Breach of the law.

Article

Yeps seen it, read the comments. i think the most sensible suggestion there is for agents to be compelled to list what is their own average sale price is as a percentage of their initial asking price...........i.e. 70%, 80%, 95% etc. Then consumers could choose estate agents accordingly.................will never happen though!

Interestingly noticed a new property on findaproperty today. The vendor bought it right at the peak in August 2007 for 705k. Now you sane people out their might be under the impression that prices have fallen maybe 15% from that peak. You would be wrong ................on for 750K!!! Obviously EA will no doubt give the same old 'its had a lot of money spent on it since then' nonsense. Never ceases to amaze me.

http://www.rightmove.co.uk/house-value.html?searchLocation=SA35bw&displayPropertyType=&bedrooms=&radius=0.25&sellersPriceGuide=Update+Results

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Interestingly noticed a new property on findaproperty today. The vendor bought it right at the peak in August 2007 for 705k. Now you sane people out their might be under the impression that prices have fallen maybe 15% from that peak. You would be wrong ................on for 750K!!! Obviously EA will no doubt give the same old 'its had a lot of money spent on it since then' nonsense. Never ceases to amaze me.

http://www.rightmove.co.uk/house-value.html?searchLocation=SA35bw&displayPropertyType=&bedrooms=&radius=0.25&sellersPriceGuide=Update+Results

:lol::lol::lol:

I see that denial still reigns in Swansea.

I spoke with a senior EA I know today at one of the big chains. Asked what the market is like. The answer was "The market is crap!". Told me to put in really low offers as offers are rare.

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Not sure about this one at all, I know the house and it does seem value at £350k.

But

Would the vendors actually accept this amount or are some games being played here?

It's up for auction in November and I wonder if this is another case of setting a tasty guide price to generate interest?

Or

Are there plans to build in the field behind again?

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Not sure about this one at all, I know the house and it does seem value at £350k.

But

Would the vendors actually accept this amount or are some games being played here?

It's up for auction in November and I wonder if this is another case of setting a tasty guide price to generate interest?

Or

Are there plans to build in the field behind again?

Didn't it feature in the Property Post several months back when it came on the market? Son of original owners selling it, said something about his parents buying it as a holiday home and him having happy memories of living in it, etc, etc?

I suspect it is 350K starting bids at auction with, possibly, a higher price having been set which, if not reached, will result in it not being sold? Who knows?

I personally do not like the house at all, very bland IMPO. Sketty appears to be the last place to be seeing serious price drops - even Mumbles area are now dropping asking prices a fair bit. I was talking to one EA who said he found the Sketty prices to be incredulous and said that they all needed to drop by 20%.

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I think the penny is now dropping with some Swansea EAs. Some in Mumbles still, outwardly, give the appearance of being in denial IMPO but, from talking to various EAs and others involved in property, I am told that things are dreadful out there.

One solicitor firm I know of used to have a dept doing conveyancing. Now they have one guy and he is an experienced solicitor who mostly works on other stuff due to so little property work to do.

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Meanwhile this beauty has gone under offer after being on the market for several years..

http://www.rightmove.co.uk/property-for-sale/property-19815441.html

For those who know Swansea, the above property represents everything that was wrong with the local market during the boom years ( flipping, mortgage fraud, overvaluing) in more ways than one..

I would be interested to see whether the sale actually goes through and what it eventually sells for..I would expect the vendors to make a loss if it goes for anything less than 310k (including fees, SD etc)

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Meanwhile this beauty has gone under offer after being on the market for several years..

http://www.rightmove.co.uk/property-for-sale/property-19815441.html

For those who know Swansea, the above property represents everything that was wrong with the local market during the boom years ( flipping, mortgage fraud, overvaluing) in more ways than one..

I would be interested to see whether the sale actually goes through and what it eventually sells for..I would expect the vendors to make a loss if it goes for anything less than 310k (including fees, SD etc)

Oh yes, let's keep an eye on this one.

Personally, I think anyone who checks the land reg figures/houseprices.co.uk/nethouseprices etc and sees when it last sold and how much for... would be nuts to pay 250K for it.

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  • 429 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?


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