Jump to content
House Price Crash Forum
Sign in to follow this  
wsn03

My Estate Agent Friend - West Midlands

Recommended Posts

I use the term very loosely...we participate in a group activity and chat occasionally.

I asked her how the market was, she said very slow. I thought this was sales wise, her answer was "no, we're not getting enough stock to put on the market, selling isn't a problem".

I asked how she thought the tax changes to BTL would affect things (I know she's an agent, not an economist), she said "I expect everyone will start selling".

Two interesting points:

1. The market is still nuts (why I cannot understand)

2. The BTLs probably won't realise what has hit them until they reach a tax year end, despite all the news etc I don't think most are doing anything about it besides not think about it.

How scary is that?! I expect a flood of property could happen over the next 12 months?!?

Share this post


Link to post
Share on other sites

2. The BTLs probably won't realise what has hit them until they reach a tax year end, despite all the news etc I don't think most are doing anything about it besides not think about it.

How scary is that?! I expect a flood of property could happen over the next 12 months?!?

Isn't there going to be a Budget soon. I expect Osborne will make the point about the tax changes in his speech. That might wake a few more BTL-ers up.

I'm just theorizing but it may lead to more supply of ex-BTL properties come summer and autumn if landlords selling up serve notices on their tenants.

Share this post


Link to post
Share on other sites

I asked her how the market was, she said very slow. I thought this was sales wise, her answer was "no, we're not getting enough stock to put on the market, selling isn't a problem".

And the reason being everything is too expensive to even bother going to look at it.

If what you can see online is so ridiculously priced why bother putting your place on the market.

Only stuff i can see as new instructions is so ridiculous id rather wait.

Share this post


Link to post
Share on other sites

If my estate is anything to go by, where traditionally there were always 2,3 or 4 properties for sale at any one time, now there are none. The only ones taht do come up are when the owner dies, everyone else is basically stuck in-situ as the next step on the ladder is out of reach. As the houses are a reasonable size with no through traffic this is tolerable so everyone stays put.

Share this post


Link to post
Share on other sites

There are only 40% of houses for sale in my area compared to a year ago.

Lately I'm seeing many more flyers from short-of-stock EA's coming through my letterbox.

How they are making a living I don't know.

Share this post


Link to post
Share on other sites

@chewinggrass, nail on the head. As has been mentioned on other threads the HTB ponzi scheme has simply pushed prices up 20%. And its unaffordable when a terrace goes from 200 to 300 a detached from 250 to 350 where I am. Sometimes you have to stay put not because you like the space but because you can't afford the bubble induced price hikes. sDLT is up this year sdo George is no doiubt happy.

Share this post


Link to post
Share on other sites

The same in my area, Hale/Altrincham in South Manchester. The prices have exploded in the last 18m by about 25% and supply is very tight. However, friends I know can't afford to move up due to the cost of the extra bedroom etc. There is currently a boom in cellar conversions and extension round here - a sure sign that the steps on the ladder are too large. Exactly the same thing happened when I lived in Finchley in London between 2006 & 2007.

The basic truth of all of this nonsense is that once the bottom rung becomes too expensive (same in 2007), the steps on the ladder become too large (same in 2007) and prices are far outstripping salaries (same in 2007) then something has to give. You have prices doubling in a few years when salaries and the cost of borrowing don't change.

Share this post


Link to post
Share on other sites

The same in my area, Hale/Altrincham in South Manchester. The prices have exploded in the last 18m by about 25% and supply is very tight. However, friends I know can't afford to move up due to the cost of the extra bedroom etc. There is currently a boom in cellar conversions and extension round here - a sure sign that the steps on the ladder are too large. Exactly the same thing happened when I lived in Finchley in London between 2006 & 2007.

The basic truth of all of this nonsense is that once the bottom rung becomes too expensive (same in 2007), the steps on the ladder become too large (same in 2007) and prices are far outstripping salaries (same in 2007) then something has to give. You can't have prices doubling in a few years when salaries and the cost of borrowing don't change.

Share this post


Link to post
Share on other sites

I'm keeping an eye open for obvious previously let properties as most are sound and just need a bit of tlc. I'm hoping any LLs who realise what's happening and want out will acccept "cheeky offers". :)

Share this post


Link to post
Share on other sites

And the reason being everything is too expensive to even bother going to look at it.

If what you can see online is so ridiculously priced why bother putting your place on the market.

Only stuff i can see as new instructions is so ridiculous id rather wait.

I don't quite get this. Are the prices you see online not pitched to sell? Are these houses not getting any viewings, let alone offers?

It seems in my area most decent properties are selling quickly at asking.

Share this post


Link to post
Share on other sites

I don't quite get this. Are the prices you see online not pitched to sell? Are these houses not getting any viewings, let alone offers?

It seems in my area most decent properties are selling quickly at asking.

They seem to be selling quickly in my area, but I know they are over-priced and people seem to be in a bit of frenzy. Most seem oblivious to the idea of BTL properties flooding the market. The only thing people aren't optimistic about is the economy, everyone seems to get the idea that something bad is around the corner (not a problem to anyone, until they lose their job of course)...somehow people never see the correlation between recession and house prices - too many years of propped up increases.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.