Jump to content
House Price Crash Forum
Yvonne

Anyone else viewing houses and looking to buy currently?

Recommended Posts

6 minutes ago, Mancunian284 said:

The masses seem to think house prices are still going up hugely.

My hairdresser informed me that the house she bought two years ago for 200k is now worth 300k and spoke to me as though I was absolutely stupid for not immediately buying a house, as they’ll just keep going up.  She hasn’t done loads of work on the house since buying it. No index I’ve seen has 50% increases in price over the last 2 years.

This is in an ok area of Manchester but not in a good catchment for schools.

I mean. She's a hairdresser. :) 

Share this post


Link to post
Share on other sites
10 hours ago, Fromage Frais said:

I amazes me how they want to suffer for that little extra money and fight the tide... massive equity gains already locked in.

Around here its because they seldom had a job over 25k equivalent and the previously affordable house is now listed at 300-500K so that 25 k off is a whole lot of money.  That and they probably dont really want to move.

Sadly often the fight is for nought as they die in situ and the greedy ancestors leave it overpriced for months after.

 

Not to mention further delays incurred if/when it hits probate. Families can complicate matters massively as I'm sure some of us can attest to. Though each case is different.

Share this post


Link to post
Share on other sites

Always looking - but in London now the prices are so insane even for someone like me on double mean London wages and there is no value.. And I can't face spending 90 minutes commuting daily by moving to a cheaper area or the loss of easy access and public transport to gyms, facilities and hospitals - so carry on renting.

Needed a new fridge freezer last week as my old one broke down - landlord kindly agreed to pay over £500 for a new one - one advantage of renting I suppose!

 

Share this post


Link to post
Share on other sites
11 minutes ago, Redranger41 said:

True, but still unsure as to whether to go ahead on this or not!

I've bought houses (despite being on HPC) and honestly, I don't think you'll miss out on anything by holding off for a bit. As long as where you are now is stable, no baby on the way, no family you have to be near, no pressing requirements otherwise...

Holding fire until you know what Bozo money is coming your way, or what the BoE does to rates makes a lot of sense. In the meanwhile see a load of properties, get your top streets locked down, know exactly what you want. Then when you see the market changing (and it will, inevitably) you'll know how to react. 

Clapham isn't running out of flats. 

Share this post


Link to post
Share on other sites
15 hours ago, PeanutButter said:

I've bought houses (despite being on HPC) and honestly, I don't think you'll miss out on anything by holding off for a bit. As long as where you are now is stable, no baby on the way, no family you have to be near, no pressing requirements otherwise... 

At the levels I am looking at, c 400,000, there are regular cuts of 25k. This is twice my current annual rent and comfortably my salary after tax, rent and bills.

So I don’t feel like I’m missing out by waiting. But if these regular 25k falls stop and start to reverse then I’m stuffed. Again.

Hoping for an acceleration and a change of sentiment.

Share this post


Link to post
Share on other sites
2 hours ago, neon tetra said:

At the levels I am looking at, c 400,000, there are regular cuts of 25k. This is twice my current annual rent and comfortably my salary after tax, rent and bills.

So I don’t feel like I’m missing out by waiting. But if these regular 25k falls stop and start to reverse then I’m stuffed. Again.

Hoping for an acceleration and a change of sentiment.

I wonder if we need EAs to change their sentiment - so they try and persuade people to start with lower asking price? Or drop asking prices? Do EAs ever change? Do people listen to EAs?

Share this post


Link to post
Share on other sites
42 minutes ago, Sausage said:

I wonder if we need EAs to change their sentiment - so they try and persuade people to start with lower asking price? Or drop asking prices? Do EAs ever change? Do people listen to EAs?

It might be the case that the managers of the office or a head office of EA's are still judging success by the number of new properties that they can attract to their business. They need to value at silly prices to get the houses on their books. 

The front line EA's who are paid by commission are fodder to them. We had an office close in one area I was looking at. As it was dying due to lack of sales the usual "flash" EA's disappeared and were replaced by what looked like cheaper and younger people.  Where these people have gone I don't know. 

EA's unless they are older and belong to established companies don't have the skills to reason with vendors in this way. They aren't supported by their managers. 

Edited by Flopsy

Share this post


Link to post
Share on other sites
20 minutes ago, Flopsy said:

It might be the case that the managers of the office or a head office of EA's are still judging success by the number of new properties that they can attract to their business. They need to value at silly prices to get the houses on their books. 

The front line EA's who are paid by commission are fodder to them. We had an office close in one area I was looking at. As it was dying due to lack of sales the usual "flash" EA's disappeared and were replaced by what looked like cheaper and younger people.  Where these people have gone I don't know. 

EA's unless they are older and belong to established companies don't have the skills to reason with vendors in this way. They aren't supported by their managers. 

Totally agree

You cannot sell stock you dont have and we have a bizarre situation.

  • Lots of buyers and a growing population..... however they are still bound by certain affordability limits (sanity)
  • Low rates
  • Despite their being enough or not enough houses there are more actual houses/flats than say 10 years ago...... yet stock for sale is historically low.
  • Unemployment is low
  • shops are cheap and the cost of entry for agents is very cheap.

So the competition for listings is fierce I would say probably more so than buyers.  Some of the agencies I have seen have the best agents on listing properties rather the other end and their job is to win the instruction ... not to sell the house to the new owner so they dont really care about that.

With normal rates this business model would not last but with low rates the cost of keeping a zombie agency limping along on one sale a week and the cost of keeping the house empty in the hope a white night is going to come from London (despite London falling) is low.

It's a typical dysfunctional market that is becoming more and more illiquid around here..... as in most illiquid markets price discovery is difficult and any further subsidy or interference will exacerbate this.

 

 

 

Share this post


Link to post
Share on other sites

The phrase 1% of nothing is still nothing, springs to mind.

Of the properties we've viewed a couple of Agents have been quite open in their view the seller is overestimating the price. Then explaining, at length, their tactile approach to justify that market psychology of coming in too high may put off prospective buyers. At the price points involved, the commission boat sailing slowly away each month must be extremely frustrating for a business that needs to pay bills.

On the subject of price drops - Another Agent we fished around with commented that rather than Vendors reducing the price, they're instead seeing sales agreed at advertised price but when the survey is passed to the lender the bank refuse to lend based on the survey valuation. In some cases the price disputed by the bank is circa 10% under what the buyer and seller agreed. In one case the seller refused to drop the price and the buyers, besotted with the property, instead opted to make the difference up with a cash payment direct to the seller.

Bonkers.

Share this post


Link to post
Share on other sites
9 minutes ago, Tabs said:

The phrase 1% of nothing is still nothing, springs to mind.

Of the properties we've viewed a couple of Agents have been quite open in their view the seller is overestimating the price. Then explaining, at length, their tactile approach to justify that market psychology of coming in too high may put off prospective buyers. At the price points involved, the commission boat sailing slowly away each month must be extremely frustrating for a business that needs to pay bills.

On the subject of price drops - Another Agent we fished around with commented that rather than Vendors reducing the price, they're instead seeing sales agreed at advertised price but when the survey is passed to the lender the bank refuse to lend based on the survey valuation. In some cases the price disputed by the bank is circa 10% under what the buyer and seller agreed. In one case the seller refused to drop the price and the buyers, besotted with the property, instead opted to make the difference up with a cash payment direct to the seller.

Bonkers.

Lucky as mostly the chain just collapses.

Take any half decent street and go to zoopla prices....you click down the list and its quite interesting how many come on go sstc and then do not complete.

 

Share this post


Link to post
Share on other sites
13 hours ago, Flopsy said:

It might be the case that the managers of the office or a head office of EA's are still judging success by the number of new properties that they can attract to their business. They need to value at silly prices to get the houses on their books. 

The front line EA's who are paid by commission are fodder to them. We had an office close in one area I was looking at. As it was dying due to lack of sales the usual "flash" EA's disappeared and were replaced by what looked like cheaper and younger people.  Where these people have gone I don't know.

Some chains have separate specialist valuers and salespeople, paid on instruction and sale respectively.  Hence there is some conflict of interests between them.  In one way testing the market at overvalue and lowering the price till a price point is found makes sense although having somewhere on the market for too long might make some people suspicious for no logical reason.  RM does display the listing date and/or reduced date I think.

Share this post


Link to post
Share on other sites
On 8/13/2019 at 4:00 PM, PeanutButter said:

I've bought houses (despite being on HPC) and honestly, I don't think you'll miss out on anything by holding off for a bit. As long as where you are now is stable, no baby on the way, no family you have to be near, no pressing requirements otherwise...

Holding fire until you know what Bozo money is coming your way, or what the BoE does to rates makes a lot of sense. In the meanwhile see a load of properties, get your top streets locked down, know exactly what you want. Then when you see the market changing (and it will, inevitably) you'll know how to react. 

Clapham isn't running out of flats. 

Thanks.

 

Surely Henry Pryor must be the only one who think house prices will rise?! 

 

 

Share this post


Link to post
Share on other sites
10 minutes ago, Redranger41 said:

Thanks.

 

Surely Henry Pryor must be the only one who think house prices will rise?! 

 

 

That guy was on LBC the other day wittering on about how houses are more affordable since the GFC etc. Anyone can make a prediction, Henry!

Share this post


Link to post
Share on other sites

The Mortgage Market Review rules appear to have trapped quite a few "second steppers" I've encountered in Brighton & Hove.  When they were FTBers they gave an "inaccurate precis" of their financial outgoings and overstretched themselves for their first mortgage.  They now need to upsize because of children, but can no longer conceal these outgoings when applying for their next mortgage and so can only afford to upsize if they can sell their flats for all time high prices.

Share this post


Link to post
Share on other sites
On 08/08/2019 at 15:31, Yvonne said:

Currently looking for a house, post-divorce, but will probably sit it out until after end of October to see if there is much movement on prices.  Anyone else been viewing properties recently?  I'm looking in East Anglia and have noticed a few differences to when I last looked in 2009....most estate agents aren't aghast when you say my budget is x, this house is on for 10% more, is it worth viewing it. 

Instead, the response is, I'll ask the seller and the answer is generally ooh it's too low for them but they'd consider mid-way (between the asking price and what I want to spend).  I am generally saying ok I'll revisit in a month or so, thinking that they may have to revisit their expectations in a month or so.

Also, one house I'm going to view is a landlord looking to offload from his portfolio.  I also know of 2 people whose landlords are now looking to sell....Interesting times...

Has anyone else been looking for houses?  Putting in cheeky punts?

Personally, I'm viewing houses but waiting for a crash which I think will happen in the next 1-4 years due to a 2007-2008 style financial collapse. 

Share this post


Link to post
Share on other sites
14 hours ago, Redranger41 said:

Thanks.

 

Surely Henry Pryor must be the only one who think house prices will rise?! 

 

 

Henry Pryor tweets heavily to promote his business, sometimes contradicting something he posted just before. Nothing wrong with that if one understands that his only motive is marketing. I assume he's quite good at what he does and does get results (discounts on asking prices) for his clients. 

Share this post


Link to post
Share on other sites
13 hours ago, Will! said:

The Mortgage Market Review rules appear to have trapped quite a few "second steppers" I've encountered in Brighton & Hove.  When they were FTBers they gave an "inaccurate precis" of their financial outgoings and overstretched themselves for their first mortgage.  They now need to upsize because of children, but can no longer conceal these outgoings when applying for their next mortgage and so can only afford to upsize if they can sell their flats for all time high prices.

This......^^^^^ this is happening all over the country, will only get worse in future when trying to sell a first time buyer home such as a high fees, poorly built and insulated flat, leasehold house or HTB new build to get onto the second rung a freehold family house......there is no ladder it stops on the first rung.......the next rung the step will be too high for many.😉

Share this post


Link to post
Share on other sites

As much as I believe we’re due a crash, I finally caved in towards the end of last year and bought a house. With a baby on the way we didn’t want to be stuck relying on a landlord.

We bought somewhere small and affordable, much to the dismay of the estate agents involved (you can afford much bigger so why is your budget so small?).

£170k for a 3 bed semi, no work needed to be done, small garden, driveway with room for 3 cars, 10 minute drive from the city centre. Will do us perfectly for now and we only had to borrow 1.5x our joint salary to buy it.

Unlike many other homeowners (mortgaged up to the hilt), I won’t be living in fear of a crash, I’ll be looking forward to it, knowing I’ll be able to afford to upsize fairly easily even if I end up in huge negative equity. No sleepless nights for me!

This probably wouldn’t have been possible if I hadn’t moved back to the North West, and if we hadn’t made the jump we’d have had to spend double what we’ve paid for a similar place.

Share this post


Link to post
Share on other sites
3 hours ago, stuckmojo said:

Henry Pryor tweets heavily to promote his business, sometimes contradicting something he posted just before. Nothing wrong with that if one understands that his only motive is marketing. I assume he's quite good at what he does and does get results (discounts on asking prices) for his clients. 

 

I like Henry Pryor.

As his business is to buy houses he is better being honest 

1)  To manage the expectation of his customers he is buying houses for (you will have to budget x to get y)

2)  The actual state of the market for homes his clients will buy.

However this can only extend up to a point as it does not do him any favours either not buying anything for customers (because he tells them all wait a year as prices falling).  Additionally if he agreed with us on here and said hey prices are going to fall 30%+ ....it would not look like he acted in his clients interest getting them to buy at x/y/z previously.

Quite often in articles he is one of the only talking heads forecasting price drops or that things are overheated.

Also lets be honest if he was full on doom they would not have him on as much.
 

 

Edited by Fromage Frais

Share this post


Link to post
Share on other sites
18 hours ago, Redranger41 said:

Thanks.

 

Surely Henry Pryor must be the only one who think house prices will rise?! 

 

 

I can see this also.

But like all boosterism it will just ratchet up things to another level where the process will need to be repeated in another 18 months.

The market wants to fall its like keepy uppy but with a harder kick each time to keep it going.

Edited by Fromage Frais

Share this post


Link to post
Share on other sites
4 hours ago, IsThisRealLife said:

We bought somewhere small and affordable, much to the dismay of the estate agents involved (you can afford much bigger so why is your budget so small?).

We could and will (at some point) buy something using half of our affordability. I guess it will rile the agents a bit.

Edited by Freki

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 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%



×
×
  • Create New...

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.