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Independent: "Property asking prices slashed by £26,000 as UK housing market slows down"

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According to Zoopla: "Sellers reduce asking price of almost two in five homes, with London and south of England seeing highest proportion of discounted houses"

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Sellers have cut the price of 37.9 per cent of homes, up from 32.4 per cent in April, property website Zoopla said, in the latest sign that the UK market may be slowing down.

 

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In the capital, 39.5 per cent of property listings have been reduced in price – up from 34.6 per cent in April. Mitcham, in southwest London, has seen 45 per cent of asking prices reduced – the most of any London borough. Kensington and Chelsea, home to some of the world’s most expensive residential property, registered the biggest drop in cash terms with an average discount of £127,394. 

 

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Zoopla spokesman Lawrence Hall said the findings “should be welcome news for prospective first-time buyers looking to get a foot on the property ladder”.

He continued: “With further market uncertainty ahead, it will be interesting to see whether these reduction figures rise in the coming months.”

The research is the latest sign of a decline in the UK housing market, particularly in London and the pricier parts of the southeast of England.


More good news in the mainstream press and a fairly neutral view coming from someone with a vested interest in sales.

Lots of nice HPI-forever sentiment busting links on that piece too, including:

- UK property market value drops by £27bn as sales decline for 16th month running

- UK house prices flatten as property market slows down

- UK house prices rise 4.4% but economists warn property market slowdown is underway

:)

 



 

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This coincides with my view. There seems to be a steady stream of price reductions every day to look at, alongside price reductions.

Some of the price reductions make me laugh, £10k off a £500,000 house, or those that put the price at strange levels like £263,500.

Needs to be further to go. Would love to see panic set in and people reduce their prices massively to get their sales done, which then pegs down prices for the rest of them.

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land registry reports that prices are stagnant

it does not mater what an asking price is reduced from - all it mean in most cases is that the house was on the market for much more than it was ever worth 

There is a car dealer near me who always outs the price of a used car on at a high price then reduces it after 3 weeks - its does not mean the value of a 2nd hand car has gone down it just means he tried a hopeful price, did not get lucky so reduced

The significant price falls are in London flats in places like Wandsworth ; battersea where there is a huge oversupply  - that however benefits very few people and not many want to buy a flat in those areas

what is killing the market in many areas is the large amount of new build on the market which have H2B 

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2 hours ago, simon2 said:

Needs to be further to go. Would love to see panic set in and people reduce their prices massively to get their sales done, which then pegs down prices for the rest of them.

will not happen 99% of people are in a position where they do not have to sell rather than take a big hit - they will just stay put which reduces the number on the market which maintains prices 

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2 minutes ago, happyguy said:

will not happen 99% of people are in a position where they do not have to sell rather than take a big hit - they will just stay put which reduces the number on the market which maintains prices 

Is there some form of case study, white paper or survey to back up your statement?

Be interesting to see that analysis.

 

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5 minutes ago, Smiley George said:

Is there some form of case study, white paper or survey to back up your statement?

Be interesting to see that analysis.

 

look what happened in Ireland. people ended up staying in the property. were in massive negative equity. a lot had mortgages restructured to rinse more money from them

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Lower asking prices one thing but not only that with a greater volume coming onto the market......more choice for less has to be a bargain for buyers......and for sellers wishing to sell to buy, they can profit from it also, more choice with less debt......win, win.😉

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26 minutes ago, happyguy said:

will not happen 99% of people are in a position where they do not have to sell rather than take a big hit - they will just stay put which reduces the number on the market which maintains prices 

Such certainty, spoken like a true estate agent.

Just because you want something does not make it so.

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28 minutes ago, Smiley George said:

Is there some form of case study, white paper or survey to back up your statement?

Be interesting to see that analysis.

 

I think you'll find "economics 101" may have it covered.

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30 minutes ago, Si1 said:

I think you'll find "economics 101" may have it covered.

Let me remind you there is no economic law that says that low supply means RISING prices. The law of supply and demand stipulates that low supply respect to demand produce high prices (but not necessarily rising). In other words, what you are saying about people staying put is already reflected in the pricing, as this isn’t something new.

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On 26/10/2018 at 13:27, happyguy said:

will not happen 99% of people are in a position where they do not have to sell rather than take a big hit - they will just stay put which reduces the number on the market which maintains prices 

Probably you are wrong.I bet "Death-Divorce-Debt" sales are more than %1 of the market. And they cant sit on them really long.Even w/o 3D sales,  people have other reasons to sell and they cant postpone them forever (moving to another area, downsizing or upsizing etc.). Another point; most of the sellers purchased their properties long ago and they will not take a financial hit if they sell less than they anticipated. So, they reduce their prices eventually if the market is going south way.

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Here is the price change history of a house, on the south coast, that we viewed in 2005.

Reduced by 17.5% (£100K) in stages over the last 5 months from the delusional original asking price and now showing as sold subject to contract.

It will be interesting to see what price it is actually sold for if the sale completes. My guess is that it's got a long way to fall yet. From memory, asking price was about £275K in 2005 and I wouldn't be surprised if it ultimately falls below that.

Edit: Thinking about it, the asking price in 2005 was probably more like £325K.

 

Price Change History
25/09/2018 Price Changed: £499,000 £475,000
22/07/2018 Price Changed: £510,000 £499,000
01/07/2018 Price Changed: £535,000 £510,000
21/06/2018 Price Changed: £550,000 £535,000
31/05/2018 Price Changed: £570,000 £550,000
29/05/2018 Price Changed: £575,000 £570,000
09/05/2018 Initial entry found.
Edited by Bruce Banner

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To be honest many sellers think the world and their wife are itching to buy their property.....chancing their luck insist it is marketed for a 'set price' will be queuing up to buy...... suddenly reality hits home.

Edit to say,.....of course if the lenders are happy to lend more over longer terms 30 to 50 years, lower interest rates with a 10% borrowed deposit.....sky's the limit, people would pay anything for anything......not their money.😉

Edited by winkie

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On 27/10/2018 at 16:28, Bruce Banner said:

Here is the price change history of a house, on the south coast, that we viewed in 2005.

Reduced by 17.5% (£100K) in stages over the last 5 months from the delusional original asking price and now showing as sold subject to contract.

It will be interesting to see what price it is actually sold for if the sale completes. My guess is that it's got a long way to fall yet. From memory, asking price was about £275K in 2005 and I wouldn't be surprised if it ultimately falls below that.

Edit: Thinking about it, the asking price in 2005 was probably more like £325K.

 

Price Change History
25/09/2018 Price Changed: £499,000 £475,000
22/07/2018 Price Changed: £510,000 £499,000
01/07/2018 Price Changed: £535,000 £510,000
21/06/2018 Price Changed: £550,000 £535,000
31/05/2018 Price Changed: £570,000 £550,000
29/05/2018 Price Changed: £575,000 £570,000
09/05/2018 Initial entry found.
 

That really makes me laugh out loud.   THIS is what should have happened years and years ago....  But all the fraud & props stopped it....  Now - what can the VI's do???   

They should have realised YEARS ago --- one simple, simple sum tells you all you need to know:

 

£25,000 x 3 = £75,000.

 

Go figure.

Edited by eric pebble

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  • 140 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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