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ingermany

Hometrack-97% Of Buyers Pay Asking Price

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Hometrack reports that sellers are now getting 97% of asking price.

Latest bit of media ramping, although I have to say, from my experience this does seem to be true. And not just in London. Have been looking to buy in NE England, and agent has 6 viewings within 24hrs of instruction. No hope of making an offer below asking price. In fact, having offered full asking, I am now waiting for the agent to call me if offer is accepted. The property is "fairly" priced at 2002 level and 30k below 2009. But I am not paying above asking price. This is not a market. HTB is a seller's insurance policy paid for by FTBs.
So this is what Cameron and Clegg wanted. Prices stoked up. Help to Buy does not help ordinary people to buy. It has unleashed a price bubble, with inflation and gazumping. Followed no doubt by a crash AFTER a lot of people have been sucked into paying insane prices. The depressing thing is that for politicians this is precisely the result they wanted.

Edited by ingermany

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The depressing thing is that for politicians this is precisely the result they wanted.

Politicans and bankers make their money from Boom and Bust. They make money on the way up by lending and then buy up assets cheaply when it crashes.

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The price inflation due to government manipulation is spreading well beyond London/SE, into areas with low median salaries and no REAL affordability underpinning the price rises. Take away the government subsidies, and you have another crash. Can't blame it on BTL because yields are 3-4%- surely no one is "investing" in BTL other than in the hope of government subsidies via HTB and LHA causing inflation. It is madness, again. They just need to bring back Northern Rock and the "we don't ask any questions" mortgage and the circle is complete. Except this time the government bail-outs are being given up front via HTB, rather than after the default crisis.

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The price inflation due to government manipulation is spreading well beyond London/SE, into areas with low median salaries and no REAL affordability underpinning the price rises. Take away the government subsidies, and you have another crash. Can't blame it on BTL because yields are 3-4%- surely no one is "investing" in BTL other than in the hope of government subsidies via HTB and LHA causing inflation. It is madness, again. They just need to bring back Northern Rock and the "we don't ask any questions" mortgage and the circle is complete. Except this time the government bail-outs are being given up front via HTB, rather than after the default crisis.

I know of a house which will be let out rather than sold in order to get a rental income equating to under 3% gross, and the extra mortgage interest paid to buy the new home without selling the current one could plausibly reduce that yield to zero without any other considerations whatsoever(voids, fees, maintenance).

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Brilliant news....peolpe paying asking prices which are 2007 bank/economy destroying + 20% level all backed by the government sub-prime lending scheme and gifting deposits to banks and builder, low interest rates, wage deflation, price inflation, unaffordable cost of living....etc etc etc etc etc etc etc etc.

Can anyone see any problem with this ?

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Got confused by the thread title:

Hometrack-97% Of Buyers Pay Asking Price

is not the same as

Hometrack reports that sellers are now getting 97% of asking price.

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... Can't blame it on BTL because yields are 3-4%- surely no one is "investing" in BTL other than in the hope of government subsidies via HTB and LHA causing inflation. ...

Hmmm, I have lost count of the number of times where I have seen a "Sold" board replaced with a "To Let" board (Bournemouth/Poole area) ...

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Hmmm, I have lost count of the number of times where I have seen a "Sold" board replaced with a "To Let" board (Bournemouth/Poole area) ...

That would tally in with my thinking that this supposed recovery is driven by the (new) BTL brigade are burying houses...all the greedy boomers who are used to 6% interest on their savings have been looking for new safe havens for their cash that outstrip inflation.

They should remake "terry and june", call it "Telly and boom".

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Almost everyone over 25 (yes, almost everyone) in Ireland had a btl apartment,house, etc before the boom turned to bust. The demand from investors creates a shortage of property for sale whilst rents stagnate and eventually fall.

People often question, how could Ireland, Spain, USA overbuild so many houses? At the time there was a shortage of properties for sale due to investors buying them all up, even though there were thousands of vacent properties there was still a shortage.

Sounds familiar?

You can prevent this fake demand by regulating the rental market and making BTL unattractive to mum and pop investors.

Sure enough this boom will turn to bust, but this time interest rates cannot be lowered to kick start another boom.

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I am happy to sit on the side lines for a year - this is clearly a fluff piece to get as many as possible on the boat (Titanic). Easter has gone, and many, many people have failed to sell at silly prices. You can smell Sellers Fear, Bubbles, and IR rises in the air. Next there will be a rush to the door, as realism briefly visits. Great joy - the End game (including the downfall of scabby Dave and Nicky) has begun, we will see how fast that run to the exit is.

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So this is what Cameron and Clegg wanted. Prices stoked up. Help to Buy does not help ordinary people to buy. It has unleashed a price bubble, with inflation and gazumping. Followed no doubt by a crash AFTER a lot of people have been sucked into paying insane prices. The depressing thing is that for politicians this is precisely the result they wanted.

Which is why I shall never vote for either of them again and I'm doing a pretty good job of convincing family members to vote UKIP too.

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Hometrack reports that sellers are now getting 97% of asking price.

Latest bit of media ramping, although I have to say, from my experience this does seem to be true. And not just in London. Have been looking to buy in NE England, and agent has 6 viewings within 24hrs of instruction. No hope of making an offer below asking price. In fact, having offered full asking, I am now waiting for the agent to call me if offer is accepted. The property is "fairly" priced at 2002 level and 30k below 2009. But I am not paying above asking price. This is not a market. HTB is a seller's insurance policy paid for by FTBs.

So this is what Cameron and Clegg wanted. Prices stoked up. Help to Buy does not help ordinary people to buy. It has unleashed a price bubble, with inflation and gazumping. Followed no doubt by a crash AFTER a lot of people have been sucked into paying insane prices. The depressing thing is that for politicians this is precisely the result they wanted.

Shouldn't this read something like ....% of buyers using Government funded deposits offer the Government's 20% in order to pay the full asking price? Is it 20% that HTB and HTB2 people are getting in order to help them buy, or rather in order to keep house prices unaffordable ? The 20% that banks and building societies do not want to offer because current property prices are too high risk?

I did however notice that at a new development not far from where I live, 5 out of the 9 properties sold so far are all under HTB and sold for £5000 under the asking price even though we were told last year by the sales office that they could not offer any price reductions!! :o)

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So thatll be why my offers 20-25% less then asking price arent working.

Isn't this why buyers SHOULD borrow the 20% from the government so that they can offer full asking price and keep properties unaffordable?

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I know of a house which will be let out rather than sold in order to get a rental income equating to under 3% gross, and the extra mortgage interest paid to buy the new home without selling the current one could plausibly reduce that yield to zero without any other considerations whatsoever(voids, fees, maintenance).

Same story here in Aus. I reckon the 2 bed apartment me the OH rent would give a gross yield of about 3.2 -3.5% going on the price of the units. Expalins why every inspection no matter how clean they send you a letter claiming the standard wasnt good enough - building up towards trying to steal your deposit ;)

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Isn't this why buyers SHOULD borrow the 20% from the government so that they can offer full asking price and keep properties unaffordable?

That's the government plan, apparently. It makes as much sense as a 1990s Albanian pyramid scheme, and is being supported by the government for the same reasons the Albanian state tolerated the pyramid fraud. A visceral fear of the consequences of money exiting the "market" and having to face the angry masses who feel they've lost money.

Having said all this, the ppty I am looking at is on sale for the same price that it changed hands for in 2002. CPI went up around 40% since then so this property value has dropped like a stone in real terms over the past 12 years. In spite of this HTB has resurrected the "prices only go up" meme. It is scary how propaganda can blind people to the plain truth.

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1. There are literally thousands of properties on the market with high asking prices that NEVER sell.

2. Is it initial asking price or price at SSTC. If a property undergoes a half dozen asking price reductions from when initially offered to the market, it a meaningless stat.

Oddly most seem to reduce then suddenly go SSTC. Maybe EAs reducing after an offer to make it look as if they are better at achieving asking.

Basically it seems open to abuse to me. If estate agents can lie, they will.

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