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The Masked Tulip

Viewings Have Dried Up - So I Was Told This Morning

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Spoke with a senior guy in a major South West Wales EA firm this morning who told me that about a month ago viewings just dried up.

Up until then things had apparently gone nuts between early March to end of April and now - nothing.

He said that they are worried because they have a flood of houses coming on the market.

However, he named two competitors who he said are valuing HPs between 30K and 60K above what he values on 3 bed semis - gave an example of a road where he has sold two for circa 150K and managed to get 170K for a third.

A fourth house recently came on for valuation and he optimistically said he would try for 170K but with a provision of taking it down to 150K to sell. One competitor came and allegedly valued it at 200K and a second competitor then went in and allegedly valued it at 220K to 230K.

Got popcorn?

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Remember: politics matters.

As prices fall, the news will begin to report complaints from 'ripped off sellers' who feel they've been 'denied' the 'true value of their home/asset'

The media will compare these complaint with the equal and opposite complaints from Generation Rent etc, who've been denied a home they can buy.

If the two sets of complaints balance, then policymakers may feel obliged to stop an HPC free-fall.

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Why would anyone rush to buy a place they would believe and can see is/will be falling in price, they can't secure the funds to buy the place and the cost of buying it is/will be going up.......not a lot going for it to be honest. ;)

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Interesting anecdote. Assuming that it's due to fundamentals, and not - I don't know, cutting the Marketing budget or something - then image what the appointment books of those other, optimistic, EAs must look like. We could be fast approaching 'fear'.

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Interesting anecdote. Assuming that it's due to fundamentals, and not - I don't know, cutting the Marketing budget or something - then image what the appointment books of those other, optimistic, EAs must look like. We could be fast approaching 'fear'.

They have been marketing like crazy.

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Locally, for sale boards coming on all over the place. Also lots of small scale developments being started, after getting planning permission years ago and sitting on it.

several new for sale boards gone up in the village.

This is a sought after area and it has been usual for Sold boards to go up first.

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My father's house has been on the market for two months (he died in January), old person's bungalow in popular yorkshire village- no signs of life. We priced it according to recent sales of very similar houses in the same street

The house is suitable for boomer downsizers, but i suspect the ones who want to downsize cannot find any younger folk to pay their crazy prices.

Edited by debtlessmanc

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My father's house has been on the market for two months (he died in January), old person's bungalow in popular yorkshire village- no signs of life. We priced it according to recent sales of very similar houses in the same street

The house is suitable for boomer downsizers, but i suspect the ones who want to downsize cannot find any younger folk to pay their crazy prices.

Sorry to hear about your dad debtless - hope you are doing OK :)

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My father's house has been on the market for two months (he died in January), old person's bungalow in popular yorkshire village- no signs of life. We priced it according to recent sales of very similar houses in the same street

The house is suitable for boomer downsizers, but i suspect the ones who want to downsize cannot find any younger folk to pay their crazy prices.

So if the boomer downsizer dropped the price of the house they are selling by 20% so that a young person could buy it.....would you drop your fathers house 20% for a quick sale?

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Locally, for sale boards coming on all over the place. Also lots of small scale developments being started, after getting planning permission years ago and sitting on it.

Seen a surge in some of the post codes I follow,going from say 750 available in March to 850 now.Not massive but significant...East Mids.

Edit to add:It does seem that there's been a substantial increase in higher end houses coming to market.

Edited by Sancho Panza

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'He's not giving it away.'

Quite...and you can't take it with you......all property with any value left in it will eventually find its way back down to the younger ones, one way or another.... ;)

Edited by winkie

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Yes being seeing a lot more supply up here. And some overpriced tat that has been on the market for years going under offer. I suspect a lot will come back onto the market and prices are almost sane up North (in places).

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So if the boomer downsizer dropped the price of the house they are selling by 20% so that a young person could buy it.....would you drop your fathers house 20% for a quick sale?

Problem with probate, I have to agree with siblings, one of whom is a g****y t**t. My dad bought it in 2004 and spent £15k on it. I would be happy to get the 2004 price tbh.

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'He's not giving it away.'

To be fair,Executors must attempt to sell at 'best price' or suffer potential litigation from beneficiaries.

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Problem with probate, I have to agree with siblings, one of whom is a g****y t**t. My dad bought it in 2004 and spent £15k on it. I would be happy to get the 2004 price tbh.

The question is, how long are you (collectively) going to keep it on the market at the current price? It's been 4-5ish months now?

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To be fair,Executors must attempt to sell at 'best price' or suffer potential litigation from beneficiaries.

Indeed aforementioned sibling has already threatened myself and brother with legal action, when pointed out that this might squander it all, they replied "so what I can afford it"

Jeez families...

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The question is, how long are you (collectively) going to keep it on the market at the current price? It's been 4-5ish months now?

I think when we start getting the council tax/electricity/insurance bills, we will see some movement.

To be serious, my father lefts us a substantial amount of cash and we are not in any desperate hurry for the money. So if we were all inclined to the view 'not giving it away' I think we would wait a very long time. The problem is that I can see no pressures at the moment that will produce HPC, interest reset rises would see people default, but reposess and turf them out? Where are they going to live- the govt has to sort that. I think the fact that interest on savings appears again would have more effect as people hurry to sell probate/downsize to get the money in the bank....

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I wonder if the EA can separate seasonal and trends in the data. Any news on the supply because my expectation was of weak supply due to low rates. A panic exit to cash in the 'gains' combined with weak demand would be incredible to watch.

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I think when we start getting the council tax/electricity/insurance bills, we will see some movement.

To be serious, my father lefts us a substantial amount of cash and we are not in any desperate hurry for the money. So if we were all inclined to the view 'not giving it away' I think we would wait a very long time. The problem is that I can see no pressures at the moment that will produce HPC, interest reset rises would see people default, but reposess and turf them out? Where are they going to live- the govt has to sort that. I think the fact that interest on savings appears again would have more effect as people hurry to sell probate/downsize to get the money in the bank....

The next-door neighbour, or the oldie who dies a few houses up the street, may not have left as much cash, and may have a mortgage.

Meaning the inheritors more willing to accept a lower price. Have you any idea what that does to wider values, when it becomes 2 or 3 in an area in a month?

Or more of these 'owners' with more of a need to sell: http://www.housepricecrash.co.uk/forum/index.php?showtopic=154787

For now there is just about a balance to support prices, but it's finely balanced, imo.

It's going to be a buyer side crash - what remaining buyers are willing/able to pay - against owner complacency to always hold out for" what it's worth." What part of values are set at the margin do people not understand? Between as few as 1 buyer and 1 seller (savings/credit/real demand for mortgages/upsizing constraints given the massive differences in prices between the rungs). Yet ever day we have excuses for how there's no real way houses could crash.

One of my relatives is a volunteer for their old company (retired), doing a few check each year to ensure (with genuine care) that ex-employees (retired) are ok, not lonely or suffering problems, and not in serious need. Always a trickle dying off, leaving both larger expensive houses and bungalows. Not every inheritor will hold out for "what it's worth."

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Problem with probate, I have to agree with siblings, one of whom is a g****y t**t. My dad bought it in 2004 and spent £15k on it. I would be happy to get the 2004 price tbh.

I often find myself wishing that I was a only child!

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The problem is that I can see no pressures at the moment that will produce HPC, interest reset rises would see people default, but reposess and turf them out? Where are they going to live- the govt has to sort that.

Sorry about your Dad, stressful enough I'm sure, without sibling issues.

On the above point though. The goverment has a responsiblity to sort out precisely nothing. I've been through 2 crashes 90's and 2008 (if we can count that) and if people are repossessed, they have to take responsibility for themselves. They simply end up in the same position as any renter does now.

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