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Estate agents struggling to find homes to sell, says report

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.. agents in parts of the country gloomier than at any time since the financial crash.. 

 

The Royal Institution of Chartered Surveyors (Rics) said the number of properties sitting on estate agents’ books fell to just 43 per branch in March, the lowest figure since the body started collecting the data in 1978.

https://www.theguardian.com/business/2017/apr/13/estate-agents-struggling-to-find-homes-to-sell-says-report

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I used to get four or more right move emails a day, now I get one if I'm lucky with some fantasy priced new instruction, and a reduction, agents trying to win the instruction. Don't they realise the problem is the price? Are they dumb?

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1 hour ago, Blod said:

The comments under the Guardian article still contain the 'build more houses' meme. But we've okay as a least the north west isn't stagnating, FFS. Just waiting fro the call for more props. 

BBC take on the RICS report. http://www.bbc.co.uk/news/business-39577673

It's amazing how making a lie big enough makes it believable, isn't it? If there's a shortage of housing, where exactly are the hordes of homeless people blocking the pavements everywhere you look?

Let's at least call it what it is - a shortage of houses for sale. Which is a direct result of lender forbearance and govt / BoE support, in other words, a deliberately created crisis. But hardly anybody outside of this site believes that. Maybe they just don't want to.

Edited by Fully Detached

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The agents need to start telling people to all hurry up and sell before prices fall due to Brexit, the next recession or interest rates rise, S24 etc. Drum up some business and create panic selling, they want commission on sales don't they?

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In the little pocket of SW London I've been watching for a couple of years there are 230 family homes (3 bed +) for sale within a 1/2 mile radius. Last year this number didn't go above 180 at any point.

Plenty of supply around here, just very few idiots to pay the ridiculous prices. The reductions are starting to set in, the cleverer ones know the game is up and want to sell ASAP.

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31 minutes ago, hotairmail said:

I would have thought, having sold so much of the housing stock - particularly the early rungs of the 'ladder' - to landlords, no doubt their have metaphorically shat on their own carpets.

 

Particularly when speculators have driven prices so high and they're the only ones left bidding for properties....and then "pooofff", they're gone.

This ^

EAs have dug their own grave.

Now you have Purple bricks and the likes which have a much better business modle/ cash flow - 500 cash up front rather than 3k when the sale completes.

Which, these days, is a very long when.

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There might be little on the books for sale but there doesn't seem to be any great clamour to buy it.

I'm watching a few properties in my town with interest at the moment.

This bay fronted detached is of a type and in an area where the property used to sell fast

http://www.rightmove.co.uk/property-for-sale/property-46098966.html

But it's been listed 4 months now.

 

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1 hour ago, Democorruptcy said:

The agents need to start telling people to all hurry up and sell before prices fall due to Brexit, the next recession or interest rates rise, S24 etc. Drum up some business and create panic selling, they want commission on sales don't they?

Wait until the tenant fees ban bite into the profit of EAs. I suppose it's not far away.

No tenant fees, LLs trying to reduce the outgoings to be in the game.

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Quote

Stock on estate agents’ books has consequently dipped to 43.

However, the RICS claim was countered by the website Home, which said that there were “significant” increases in inventory last month, with new supply up 7% compared with March last year.

Home said that nationally, the supply of property is at a 34-month high.

So - average stock per estate agent has dipped, but overall supply is up?

Maybe we're just seeing an increase in the number of estate agents.

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7 minutes ago, mat109 said:

So - average stock per estate agent has dipped, but overall supply is up?

Maybe we're just seeing an increase in the number of estate agents.

I was thinking this, i would guess more independents in places like Birmingham, London, Manchester etc but a reduction out in the sticks.

 

 

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11 minutes ago, mat109 said:

So - average stock per estate agent has dipped, but overall supply is up?

 

And an increase in prices.

Edited by GreenDevil

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48 minutes ago, mat109 said:

So - average stock per estate agent has dipped, but overall supply is up?

Maybe we're just seeing an increase in the number of estate agents.

possibly more people trying to sell by themselves to reduce costs?

Possibly more blocks of units, e.g. "For Sale 70 HMO Units as investment opportunity for a canny investor", recorded as single sale but actually 70 units?

 

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4 hours ago, Fully Detached said:

It's amazing how making a lie big enough makes it believable, isn't it? If there's a shortage of housing, where exactly are the hordes of homeless people blocking the pavements everywhere you look?

Where I live it is clear that they are more crowded into the existing housing stock.  I expect the picture is patchy around the UK but in mid Hampshire there is definitely a shortage of housing with a virtual prohibition on new supply and soaring demand from EE immigrants and frustrated household/family formation.  A total disaster.

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3 hours ago, TwoTearsInABucket said:
  • £1000 BUYER'S INCENTIVE AVAILABLE ON THIS PROPERTY (subject to terms and conditions)

What the fudge is that about? Don't think I've ever seen something like that on a non commercial sale.

Very common basically use our surveyor and mortgage advisor then you get 1000 cashback. Been going on for years!

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Let me get my violin ready. 

This is going to Online only and I guess one person band type operations. The trouble is in online they'll be big players so I see EA's who are branch based being totally stuffed. They'll have to become online agents for the big players  or whatever the setup is. I guess the good ones will go alone.

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I'm still looking in Bucks and Beds and seeing no reduction in supply.

However, what is different in the past 4 months is the number of very expensive 4+ bedroomed houses coming on the market at 400k and above. This is particularly noticeable in Milton Keynes..

The new builds (i.e. less than 20 years) are not selling. They only go "under offer" if in a desirable area. In one not so desireable development there have been a series of very similar 4 bedders on and they only go "under offer" after months and dropping the price. I've yet to see one appear in the LR to determine if they sell and that price is.

Yet, knowing this, EA's are still putting new 4 bedders on the market every week at prices they simply do not appear to be selling at. They languish and eventually disappear.

An EA has opened an office in that development and has a window of available properties. I can't see one of them go under offer and stay in the entire time they have been there (1 month only though).

Edited by Flopsy

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3 hours ago, TwoTearsInABucket said:
  • £1000 BUYER'S INCENTIVE AVAILABLE ON THIS PROPERTY (subject to terms and conditions)

What the fudge is that about? Don't think I've ever seen something like that on a non commercial sale.

William H Brown EA have been using that ruse for many years now. They could just knock a grand off the asking price!

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6 hours ago, Fully Detached said:

It's amazing how making a lie big enough makes it believable, isn't it? If there's a shortage of housing, where exactly are the hordes of homeless people blocking the pavements everywhere you look?

The shortage of housing isn't in evidence in the number of homeless people, it's more in evidence through people aged under 35 who are housesharing. 

Demographic changes mean that many people would like to live alone, and those that can afford to do so sit in houses with many empty bedrooms. There isn't a shortage of bedrooms for the number of people in the country - there is however a very inefficient allocation of those bedrooms.

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