Jump to content
House Price Crash Forum

Recommended Posts

https://www.telegraph.co.uk/property/uk/house-price-boom-could-derailed-perfect-storm-collapsed-sales/

"The number of collapsed sales is rising fast. In July, 17pc of agreed sales fell through, according to data from property website Rightmove. The number has been rising steadily. So far in October to date, the share has jumped seven percentage points to 24pc – effectively one in four sales.

This means that many of the sales that have been boosting house price indexes based on agreed prices or mortgage approval data, may simply never happen."

 

Now I am sure that some deals are being done.

I am also sure that those doing the deals are most likely in nice secure employment and buying larger houses making the average look higher than a healthy market.

But what seems to be happening in my area and it seems other areas (hence the article above) is something I cannot remember seeing before.

As soon as the market opened and the tax cut was introduced everything half decent went SSTC and half decent around here at that time was 375-450.

Those properties are still SSTC in the main and many are now coming back on (often with a price bump.  Subsequent properties are silly priced.

It feels like a boom that never really happened all puff smoke and mirrors.

I cannot think of a more transparently dangerous time to buy an expensive property with a price (+20%) based on a previous sale that never existed (+10% of sale before that).
 

 

Edited by Fromage Frais
Link to post
Share on other sites
 

https://www.telegraph.co.uk/property/uk/house-price-boom-could-derailed-perfect-storm-collapsed-sales/

"The number of collapsed sales is rising fast. In July, 17pc of agreed sales fell through, according to data from property website Rightmove. The number has been rising steadily. So far in October to date, the share has jumped seven percentage points to 24pc – effectively one in four sales.

This means that many of the sales that have been boosting house price indexes based on agreed prices or mortgage approval data, may simply never happen."

 

Now I am sure that some deals are being done.

I am also sure that those doing the deals are most likely in nice secure employment and buying larger houses making the average look higher than a healthy market.

But what seems to be happening in my area and it seems other areas (hence the article above) is something I cannot remember seeing before.

As soon as the market opened and the tax cut was introduced everything half decent went SSTC and half decent around here at that time was 375-450.

Those properties are still SSTC in the main and many are now coming back on (often with a price bump.  Subsequent properties are silly priced.

It feels like a boom that never really happened all puff smoke and mirrors.

I cannot think of a more transparently dangerous time to buy an expensive property with a price (+20%) based on a previous sale that never existed (+10% of sale before that).
 

 

The people 'losing out' might not feel it right now but they're the lucky one

Link to post
Share on other sites
 

The people 'losing out' might not feel it right now but they're the lucky one

I hope so.  A friend told me today that he is back in the market - sold his property a few years ago to fund a business.  I've suggested it might be an idea to wait until next year to see how the land lies...

Edited by Buffer Bear
Link to post
Share on other sites
 

I hope so.  A friend told me today that he is back in the market - sold his property a few years ago to fund a business.  I've suggested it might be an idea to wait until next year to see how the land lies...

It astounds  me people need to be told this 

Link to post
Share on other sites
 

It astounds  me people need to be told this 

I agree and they're very 'bright'.  And I keep being asked why we haven't bought a home and surely "you can afford one now the children are older blah blah blah"... How rude!  Most bought at a fraction of boom prices i.e. prior to 2003.  Our mortgage from this time forward were nursery fees x 2 and we never recovered our position - prices were simply out of our league.

 

It's perverse that the only way we can genuinely afford to buy a home now is due to an inheritance.  However, my father was a grafter and I don't plan on wasting his money by indulging in buying an overpriced property.  We'll know if it's ever the right time.  If sold price continue to increase (and not based on fake news), we would seriously need to reconsider or wait until prices do correct and buy a cheaper property for the children.  I'm not too fussed either way as the objective is to leave them an inheritance too.  They'll need it given the future outlook for this country!

Edited by Buffer Bear
Link to post
Share on other sites
 

https://www.telegraph.co.uk/property/uk/house-price-boom-could-derailed-perfect-storm-collapsed-sales/

"The number of collapsed sales is rising fast. In July, 17pc of agreed sales fell through, according to data from property website Rightmove. The number has been rising steadily. So far in October to date, the share has jumped seven percentage points to 24pc – effectively one in four sales.

This means that many of the sales that have been boosting house price indexes based on agreed prices or mortgage approval data, may simply never happen."

 

Now I am sure that some deals are being done.

I am also sure that those doing the deals are most likely in nice secure employment and buying larger houses making the average look higher than a healthy market.

But what seems to be happening in my area and it seems other areas (hence the article above) is something I cannot remember seeing before.

As soon as the market opened and the tax cut was introduced everything half decent went SSTC and half decent around here at that time was 375-450.

Those properties are still SSTC in the main and many are now coming back on (often with a price bump.  Subsequent properties are silly priced.

It feels like a boom that never really happened all puff smoke and mirrors.

I cannot think of a more transparently dangerous time to buy an expensive property with a price (+20%) based on a previous sale that never existed (+10% of sale before that).
 

 

Agree

I  am as bearish as most on here...but I have a slightly odd view when it comes to prices and you mention it here...’the boom that never really happened’. 

Property isn’t like shares with a price ticking on a screen....I viewed a bungalow even just last week (research because my son is looking for a 3 bedder when the time is right) for £180k. It was bought incredibly badly for £172k in 2008. 

I won’t list other examples but what I mean is when sentiment is good people can stupidly and massively overpay. That may seem like an increase and rising market but it isn’t...it’s just people being daft and 12 months later the prices have ‘dropped’ back 10/15%. 

It’s the same when the market dips...say it drops 5% and sentiment is poor. I would then buy at 35/40% discount from a motivated seller and maybe a problem with the house. The house price hasn’t really fallen 40% (that’s why I bought) but I painted such a black scenario in my offer that the seller was agreeing a price with built in falls and sentiment to continue downwards...and with no other serious viewers what choice did they have. 

I guess I mean it’s a real ‘blippy’ market and right at this point it feels like some people could get hurt. Particularly if they buy the one painted all nicely grey with a wood burner and overpay by £30/40k (20%) for the privilege. And I have seen some go through like that. 🤦🏻‍♂️

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.

  • 439 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.