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More Houses Taking Over A Year To Sell

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Are properties that have been on the market for more than 12 months simply priced too high? Graham Norwood reports

Published: 14 December 2005

At one time it was cause to hold your head low while your name was whispered in hushed tones. But today there is no shame in admitting the truth: it seems that many houses linger on the market, unsold and in search of a buyer, for well over a year.

When I asked 30 estate agents for details of homes on sale since Christmas 2004 I expected a muted response; after all, agents and sellers unite in their reluctance to admit they cannot find purchasers. But within a day more than 200 examples hit my e-mail inbox, indicating that there are many thousands of others out there.

Part of the reason is that the 2005 property market has been slow and buyers have been more careful than ever before. Land Registry data shows that sales between January and May were 28 per cent below their long-term average. Against trend, sales improved in the second half of the year and many homes put on the market at the start of 2005 are only just attracting buyers.

Encouraging buyers to make lower offers.... :D

Such desperate measures represent good news for buyers. "We love this sort of situation," says Property Vision's Rupert Bradstock. "To go along in December with a much lower offer is exactly what a buying agent will do. Telling a vendor who's feeling beaten up by being unable to sell, that if they accept the reduced price they can exchange by Christmas, often produces results."

and reporting falls in asking prices... :D

Painswick, Gloucestershire. £500,000, Hamptons International (01452 812354). A four-bedroom listed family home in natural Cotswold stone, the oldest property in a beautiful village and with a double garage and parking space. In September 2004 it was on sale for £625,000, then fell to £585,000 in February 2005 before hitting £500,000 in July. Why? "It's empty and is by the road, which doesn't suit the typical family market in Painswick," says the agent.

http://money.independent.co.uk/property/ho...ticle332956.ece

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Things are great according to haart estate agents, front page of local newspaper.

haart estate agents chief executive Paul smith says house prices will jump 5% in

the first six months of 2006 as a surge of buyers returning to the market as

speculation of a housing crash has waned.

How do they get away with it, what a joke.

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Things are great according to haart estate agents, front page of local newspaper.

haart estate agents chief executive Paul smith says house prices will jump 5% in

the first six months of 2006 as a surge of buyers returning to the market as

speculation of a housing crash has waned.

How do they get away with it, what a joke.

I think many on here need to think seriously as to how the general public act.

Most will "put their lives on hold" for a year but generally no longer. Sentiment about the market is much more positive than it was, there is still the underlying belief that interest rates will fall.

There were 4 houses on the market next to me that were on the market all last year. 2 are now sold. To me that's a big sign that chains are completing which suggests enough activity to prevent an apocalyptic crash.

Still can't see prices rising too much though. As an STR I'm now deciding whether to rent for 2 -3 more years or offer now pre-xmas.

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Things are great according to haart estate agents, front page of local newspaper.

haart estate agents chief executive Paul smith says house prices will jump 5% in

the first six months of 2006 as a surge of buyers returning to the market as

speculation of a housing crash has waned.

How do they get away with it, what a joke.

They get away with it because they 'own' these squalid little rags. Each local paper has a property section with the EAs paying thousands to advertise. So the lead article says whatever any of the agents who can be bothered to submit an article want it to say. The sad thing is - we get two of them pushed through our letter box every week - so every property owner in the area digests this drivel.

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I think many on here need to think seriously as to how the general public act.

Most will "put their lives on hold" for a year but generally no longer. Sentiment about the market is much more positive than it was, there is still the underlying belief that interest rates will fall.

There were 4 houses on the market next to me that were on the market all last year. 2 are now sold. To me that's a big sign that chains are completing which suggests enough activity to prevent an apocalyptic crash.

Still can't see prices rising too much though. As an STR I'm now deciding whether to rent for 2 -3 more years or offer now pre-xmas.

why not rent for another 6 months, then take the economic temperature ?

2-3 years seems a bit excessive..

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why not rent for another 6 months, then take the economic temperature ?

2-3 years seems a bit excessive..

Current rent ends next June so next 6 months are an option.

However I think the following scenario is entirely plausible:

1) VI hype the market all through winter on the back of the "buoyant" autumn

2) Spring bounce predicted and announced as fact in Feb

3) Rates get cut or don't increase

4) Public confidence in house prices increase

I think that's enough to carry the market all the way through 2006 and probably through to late summer 2007 before the debt overload really kicks in.

Crash starts big style 2008.

In conclusion any STR looking for bargains next year or 2007 will find it difficult.

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They get away with it because they 'own' these squalid little rags. Each local paper has a property section with the EAs paying thousands to advertise. So the lead article says whatever any of the agents who can be bothered to submit an article want it to say. The sad thing is - we get two of them pushed through our letter box every week - so every property owner in the area digests this drivel.

I guess it just shows how corrupt things are, prices are definitely down 10-15%

year-on-year in my area. south east.

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Things are great according to haart estate agents, front page of local newspaper.

haart estate agents chief executive Paul smith says house prices will jump 5% in

the first six months of 2006 as a surge of buyers returning to the market as

speculation of a housing crash has waned.

How do they get away with it, what a joke.

It's the typical honey trap.

The concensus amongst 'experts' is that we've had the "soft landing" and a crash will never happen. Yet more gullible fools, who probably thought there would be a crash, are being sucked into the bubble. Oh dear.

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I guess it just shows how corrupt things are, prices are definitely down 10-15%

year-on-year in my area. south east.

Where about's in the south east are you? Nearest big town?

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I think many on here need to think seriously as to how the general public act.

Most will "put their lives on hold" for a year but generally no longer. Sentiment about the market is much more positive than it was, there is still the underlying belief that interest rates will fall.

There were 4 houses on the market next to me that were on the market all last year. 2 are now sold. To me that's a big sign that chains are completing which suggests enough activity to prevent an apocalyptic crash.

Still can't see prices rising too much though. As an STR I'm now deciding whether to rent for 2 -3 more years or offer now pre-xmas.

I'm still hoping that market dynamics take a turn for the worse in early 2006 - the SIPPs U-turn and negative press on 2-bed flat values being the most encouraging input into lower demand. If it doesn't, we won't be able to buy anyway because supply is now much tighter in North London (which means nothing on the market that we like) and new ceiling prices have been reached for the areas we are interested in.

But I take your point on how the general public act. If enough people think that the property market won't go down then it probably won't, for a bit anyway, because the market is the sum of their actions.

Yesterday I had to help a friend who currently owns a 1-bed and needs to trade up to a 2-bed to do the sums in working out her various options.

Her favoured option was to keep the 1 bed and buy a 2 bed in the same block. The only other option she considered was to sell the 1 bed and buy a 2 bed. She hadn't considered STR or let to rent, although this would suit her finances better and give her more flexibility.

She had no grasp of the numbers whatsoever. Here's the really scary bit: she is a journalist with 2 degrees. The only thing she knows for sure is that "property is always a good investment". She is delighted that her flat has gone up in value by over £100k since she bought it. She has no idea that she would be much better off had the market stayed flat or risen less.

To be fair, before I found HPC, it had never occurred to me to compare an interest only mortgage with the rental cost of a property. I STR'd accidentally, unable to trade up due to price differential and wanting flexibility for a while. This forum provides some an alternative way of looking at the property market that becomes second nature when you've been on the site for a while, but is still completely alien to most people outside.

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Where about's in the south east are you? Nearest big town?

South East is as good as it gets. The reason I know house prices are down

10-15% is I have the last 60 copies of the nwespaper in question and looking

back at last years papers 4 bed & 3 bed house prices down 10-15%.

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South East is as good as it gets. The reason I know house prices are down

10-15% is I have the last 60 copies of the nwespaper in question and looking

back at last years papers 4 bed & 3 bed house prices down 10-15%.

EXACTLY T2RIR!!! -- This is waht I've been saying for ages!! Prices ARE down 10-15% AND - in some cases UP TO 2%%!!! FTB's out there!! - Don't believe otherwise!!!!

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South East is as good as it gets. The reason I know house prices are down

10-15% is I have the last 60 copies of the nwespaper in question and looking

back at last years papers 4 bed & 3 bed house prices down 10-15%.

That's what I've seen too. In fact, in the Brighton area it seems to be even higher than that, but I wouldn't want to live there.

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South East is as good as it gets. The reason I know house prices are down

10-15% is I have the last 60 copies of the nwespaper in question and looking

back at last years papers 4 bed & 3 bed house prices down 10-15%.

Clearly can't disagree with you if that's what you're seeing but i'm in the south east and there is no way prices have dropped 10-15% - despite the fact it would help me out if they did. Prices are more or less exactly where they were 12 months ago here.

i suppose this shows that there is quite a gap, even within a small area, with what is happening in the market.

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In the home counties it is difficult to confirm a % house price drop. The local rag in my area has far fewer properties for sale - probably due to vendors withdrawing over the festive season. New build props are now clearly becoming heavily discounted - easily -20% off previous list prices with additional incentives to boot. My guess is that the private speculator sellers are holding off in the hope that things will get better in the new year. When the big hangover hits in January, prices will drop in a very flat market augmented by negative Dec prop sales reporting. EA's will try to yank the market up for spring, but it will be too late and the slide will begin in earnest.

Edited by make my day

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In the home counties it is difficult to confirm a % house price drop. The local rag in my area has far fewer properties for sale - probably due to vendors withdrawing over the festive season. New build props are now clearly becoming heavily discounted - easily -20% off previous list prices with additional incentives to boot. My guess is that the private speculator sellers are holding off in the hope that things will get better in the new year. When the big hangover hits in January, prices will drop in a very flat market augmented by negative Dec prop sales reporting. EA's will try to yank the market up for spring, but it will be too late and the slide will begin in earnest.

What do you mean by "Yank the market up?" Are we talking prices?

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On reading the accompanying thread with regards to haart Estates,

just confirms to me what lengths these local estate agents and

newspapers will go to for positive spin by trying to fool people in to

buying now. It's just that the front page article I'm referring to above

forgot to mention haart Estates also expects prices to fall in the second

half of '06 and end the year at plus 2-3%. Instead they saw fit just to

go with house prices to rise 5% in the first six months of '06.

I guess desperate times call for desperate measures.

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How do they get away with it, what a joke.

You think thats bad?

My local rag ran a "story" a couple of weeks back quoting an estate agent as saying

that "the *2* recent interest cut rates and more on the horizon mean that its an ideal time for FTB to get back into the market". I beleive the article headline was "interest rate cuts to boost housing market"

I put my miserable old man hat on and wrote them an email to correct them .. unsuprisingly enough they didnt print it.

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On reading the accompanying thread with regards to haart Estates,

just confirms to me what lengths these local estate agents and

newspapers will go to for positive spin by trying to fool people in to

buying now. It's just that the front page article I'm referring to above

forgot to mention haart Estates also expects prices to fall in the second

half of '06 and end the year at plus 2-3%. Instead they saw fit just to

go with house prices to rise 5% in the first six months of '06.

I guess desperate times call for desperate measures.

The VI's will stop at nothing to peddle their message - and their fraud/pyramid scam.

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Homes taking over a year to sell, this may help speed up the

London market.

Londoners' council tax bills to soar.

Mayor, Ken Livingstone, said today, "Londoners will see an

increase of more than 13 per cent next year." Which equates

to six times the rate of inflation.

And there was me thinking inflation was dead.

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  • 301 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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