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If The Market Is So Strong - Why The Price Cuts This Week?

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I must admit I'm a little confused.... If you were Mr & Mrs Average with your house up for sale and you saw or heard any of the enormous amount of spin coming out over the last couple of weeks you'd surely think the market was firming?

You'd probably think "fantastic - we'll finally get some viewings and shift this house!" and breath a sigh of expectant relief. Perhaps if you're greedy you might even be tempted to whack the price up quickly to give you some "wiggle room"... so how do you explain this:...?

I've been tracking approx 40 properties in the £500-800k range in Worcestershire and in the last 14 days 9 of them have been reduced (anything from £50k - 10k). Two came down today - one by £30k (£825k to 795k) another by £14k (639k to 625k).

If you REALLY believed that the market was going to improve why would you do this? If you were an agent and you REALLY thought the market was picking up why would you advise your client to cut their price?

Perhaps not so many vendors and agents believe the hype after all... ???

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Guest Bart of Darkness

Prices are being cut because the market is so strong.

Black is white.

Up is down.

[exit bull denial mode].

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Still reducing house prices in the local property paper Northamptonshire, lots of new instructions too.

Just watched news at 10, a report at the end on mortgages was little more than an advert.

Strange days indeed.

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This has just come down from £750k to £595k... I make that a little over 20%. So much for the strong market we keep hearing about!

Currently on Rightmove @ £595k..

http://www.rightmove.co.uk/viewdetails-4471819.rsp

Still on PropertyFinider at £600k

http://www.propertyfinder.com/2/pf/propert...lsKey=6208165&=

And the Google cache with the original £750k price (Aug 2005):

http://72.14.207.104/search?q=cache:3IgnCC...1&client=safari

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I must admit I'm a little confused....

The market is not strong. The market is collapsing around us.

Investment and second properties cannot be sustained in a falling market. Therefore, increasing supply. The vicious cycle has begun. Only aggressive price cutting will work in this market.

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The market is not strong. The market is collapsing around us. Only aggressive price cutting will work in this market.

I'll have to take your word that prices are being cut where you live. However I have made a bit of a boo-boo myself. I informed my tenants come house-sitters that they had to move out January 31. I had of course thought it would take an age to sell in this weak market. Drat. The estate agent notified me earlier today of an offer of full asking price, which I have accepted - I pay stamp duty though. Thing is I could have got a couple of extra months out of my tenants aswell, now there's going to be a two month void. Not so much house price crash as house price cash. Maybe it's because it's in London ?

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I'll have to take your word that prices are being cut where you live. However I have made a bit of a boo-boo myself. I informed my tenants come house-sitters that they had to move out January 31. I had of course thought it would take an age to sell in this weak market. Drat. The estate agent notified me earlier today of an offer of full asking price, which I have accepted - I pay stamp duty though. Thing is I could have got a couple of extra months out of my tenants aswell, now there's going to be a two month void. Not so much house price crash as house price cash. Maybe it's because it's in London ?

TIT :P

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The estate agent notified me earlier today of an offer of full asking price, which I have accepted - I pay stamp duty though.

Let us know when it completes. It ain't sold until the money is in your bank account.

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I must admit I'm a little confused.... If you were Mr & Mrs Average with your house up for sale and you saw or heard any of the enormous amount of spin coming out over the last couple of weeks you'd surely think the market was firming?

You'd probably think "fantastic - we'll finally get some viewings and shift this house!" and breath a sigh of expectant relief. Perhaps if you're greedy you might even be tempted to whack the price up quickly to give you some "wiggle room"... so how do you explain this:...?

I've been tracking approx 40 properties in the £500-800k range in Worcestershire and in the last 14 days 9 of them have been reduced (anything from £50k - 10k). Two came down today - one by £30k (£825k to 795k) another by £14k (639k to 625k).

If you REALLY believed that the market was going to improve why would you do this? If you were an agent and you REALLY thought the market was picking up why would you advise your client to cut their price?

Perhaps not so many vendors and agents believe the hype after all... ???

It is very dangerous to make local decisions based on VI national headlines. BUT...

(1) perhaps the local market is so strong in worcester (i have no idea personally) that half of the properties on the market were at very cheeky high asking prices on the off-chance someone will pay them, and half of that half have now been reduced to more realistic levels?

(2) most vendors 'know' their house is worth much more than the agent values it at. perhaps the reductions are the natural process whereby it slowly dawns on the vendor that the agent was right after all.

(3) perhaps the first crash signs in the locality of worcester?

(4) perhaps the agents have cash-flow problems and are advising unrealistically low asking prices to encourage quick sales and their business survival?

Look, I haven't a clue what's happening in worcester, but a few asking price drops means nothing. What are properties selling for, how quickly are they selling, and how do the two former compare with 3, 6, 9, 12, 24, 36 months ago? If you can answer me those questions I'll tell you whether the market in worcester is rising, falling or flat, and make a little prediction on short term direction. long term my guess is it's overvalued like most of the rest of the country and will fall in real terms over the next few years. (whether this means nominal falls is less certain)

FF

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If you REALLY believed that the market was going to improve why would you do this?

Depends how speculative the original asking price was. If you have an original asking price 50% higher than last year prices then these sort of reductions are meaningless. How much above last year's price is the new one?

There's a lot of people still speculating and asking loony prices. A reduction of a few percent is of no consequence to them.

It's impossible to come to any conclusions without knowing and comparing previous years prices.

rant.gif

post-67-1139434739.gif

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I'll have to take your word that prices are being cut where you live. However I have made a bit of a boo-boo myself. I informed my tenants come house-sitters that they had to move out January 31. I had of course thought it would take an age to sell in this weak market. Drat. The estate agent notified me earlier today of an offer of full asking price, which I have accepted - I pay stamp duty though. Thing is I could have got a couple of extra months out of my tenants aswell, now there's going to be a two month void. Not so much house price crash as house price cash. Maybe it's because it's in London ?

I will assume this is a fictional story until I get evidence.

The poster above gave details of areas/prices. Why don't you?

Let us know when it completes. It ain't sold until the money is in your bank account.

They haven't because there's nothing to sell. This poster makes bullish comments against the grain with no factual support.

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Guest Bart of Darkness
I will assume this is a fictional story until I get evidence.

Agree.

All together now...

Jackanory, Jackanory....

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Give an address ? Are you crazy ? There are some right nutters on here.

I didn't say an address. I said area e.g. SW1 or whatever. Give us some indication about what your portfolio is worth, rent income etc. If you can talk the landlord talk, you may be one. If you can't you're just a load of hot air - like so many posters we've had on here.

Yes, there are some nutters on here. You for one :lol:

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This has just come down from £750k to £595k... I make that a little over 20%. So much for the strong market we keep hearing about!

Currently on Rightmove @ £595k..

http://www.rightmove.co.uk/viewdetails-4471819.rsp

Still on PropertyFinider at £600k

http://www.propertyfinder.com/2/pf/propert...lsKey=6208165&=

And the Google cache with the original £750k price (Aug 2005):

http://72.14.207.104/search?q=cache:3IgnCC...1&client=safari

Just to give a little reassurance to those people who were blindsided by yesterday's RightMove 'data'...

Despite all of that 'positive' news yesterday what do I find today...

But the asking price for the above property has come down yet again!

Just two weeks ago it came down to £595k from £700k (started at £750k originally)... today it came down another £20k.

£750k to £575k in just over 6 months is a good start... Almost a 24% drop... I somehow reckon that doesn't figure in the Rightmove stats...

http://www.rightmove.co.uk/viewdetails-5951044.rsp

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I'll have to take your word that prices are being cut where you live. However I have made a bit of a boo-boo myself. I informed my tenants come house-sitters that they had to move out January 31. I had of course thought it would take an age to sell in this weak market. Drat. The estate agent notified me earlier today of an offer of full asking price, which I have accepted - I pay stamp duty though. Thing is I could have got a couple of extra months out of my tenants aswell, now there's going to be a two month void. Not so much house price crash as house price cash. Maybe it's because it's in London ?

What was your previous forum name again?

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£750k to £575k in just over 6 months is a good start... Almost a 24% drop... I somehow reckon that doesn't figure in the Rightmove stats...

http://www.rightmove.co.uk/viewdetails-5951044.rsp

This is brilliant news, things are looking great for the housing market now.

Don't the owners read the Rightmove report, they should be asking over 800k for it now!

Absolutely superb.

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Im still seeing price rises. got flats now hitting 115K, just today a 3bed terrace that has been on for some time with one agent for 136K has been relisted with a different agent at 139,950.

Cant sell it? put the price up.

2 up 2 downs now selling at 125K - 135K (120K not so long back)

Ya think im bover'd though? not in the slighest because the outcome is inevitable.

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Oh, and whilst we're at it... this one came down from £760k to £695 yesterday - same day as Rightmove's report!

Shame its listed on Primelocation - perhaps they can see the irony!

http://www.primelocation.com/uk-property-f...s/id/johw00086/

Link to Google cache with original price (at bottom of page):

http://72.14.207.104/search?q=cache:DDehdU...1&client=safari

And the cheeky blighters at John Sanders list it as a 'New Instruction'

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In the local EA rag and on Rightmove I have noticed a lot of properties that haven't sold yet. Some have been on the market for 6 months+

What amazes me is they are not being reduced. They just get listed with multiple agents!!

Now if I was a seller who had to make a sell then I would be start reducing by small amounts now, hoping to get someone to bite.

My view is that a lot of sellers think that by not reducing their properties then the market will catch up with them and new buyers will come forward.

In conclusion though I think there are very few forced sellers about. Those that are sell very quickly while the old stuff kicks around for ages and ages...

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Im still seeing price rises. got flats now hitting 115K, just today a 3bed terrace that has been on for some time with one agent for 136K has been relisted with a different agent at 139,950.

Cant sell it? put the price up.

2 up 2 downs now selling at 125K - 135K (120K not so long back)

Ya think im bover'd though? not in the slighest because the outcome is inevitable.

This sort of thing usually happens when the vendor knows more about the market than the EA.

The EA try's to tell the vendor, that the market has dropped, and that buyers are now expecting 10% off the asking price. The vendor either refuses, or is unable, to accept a lower price. So they raise the asking price of their property.

Their thinking seems to be..... if the buyers want 10% off, we'll give em 10% off...... we'll just add it to the front end of the price.......

Real cunning ploy.... never saw that before :)

Edited by Hino98

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I'll have to take your word that prices are being cut where you live. However I have made a bit of a boo-boo myself. I informed my tenants come house-sitters that they had to move out January 31. I had of course thought it would take an age to sell in this weak market. Drat. The estate agent notified me earlier today of an offer of full asking price, which I have accepted - I pay stamp duty though. Thing is I could have got a couple of extra months out of my tenants aswell, now there's going to be a two month void. Not so much house price crash as house price cash. Maybe it's because it's in London ?

Anecdotal spin.

If you pay the stamp duty, then you only got 95% of asking.

If the market is so strong, why not ask the buyer to pay?

Maybe because it's London...?

ABB

Edited by AgeingBabyBoomer

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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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