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Property market panic as lenders slash thousands from value of homes, sparking fears buyers will pull out (PANIC i said!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!)


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https://www.dailymail.co.uk/news/article-8952055/Property-market-panic-lenders-slash-thousands-pounds-value-homes.html

Property market panic as lenders slash thousands from value of homes, sparking fears buyers will pull out

  • Data shows the average asking price for a home soared to £323,530 in October 
  • Came as sellers cashed in on unprecedented demand during stamp duty holiday
  • But almost half now being told their property is worth less than they had asked 

"Homeowners are having tens of thousands of pounds cut from the value of their properties by lenders.

The average asking price of a home soared to £323,530 in October as sellers cashed in on unprecedented demand during the stamp duty holiday.

But almost half are now being told their property is worth less than they had asked, according to estimates.

Deals are collapsing as a result, and there are fears of a surge in buyers pulling out of purchases next year."

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Hayley Fewster, 29, and Oliver Harp, 32, agreed to sell the two-bedroom flat in Leigh-on-Sea, Essex, for £254,000.

But their buyer's lender said the property was only worth £238,000.

The couple said if they accepted less than £250,000 they could not afford the three-bedroom home they wanted to buy in Hadleigh, Essex, for £370,000.

...

 Miss Fewster, who works in PR, said: 'It's frustrating because we bought our flat four years ago for £230,000... Lenders aren't really doing anything to help.'

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We completed on a Bungalow in Coastal West Sussex on Friday.  So relieved, worried that the vendors would find out that our lender had valued it for 10% more than their asking price & 25% more than we actually paid.

Which goes to show that nobody really knows & we are far from price discovery in this distorted market.

My opinion is that its worth about 5-10% more than we paid but who really knows.  It was probate & very neglected.

All I know is that we are in for much less of a hiding is the market crashes than some of the saps paying much more for similar places in need of serious renovation.

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It's actually nice to see someone reducing ridiculous house prices. 

The government just made it worse. 

So it turned out to be the lenders...

Responding to market forces since they won't get their money back at these inflated prices. 

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Miss Fewster, who works in PR, said: 'It's frustrating because we bought our flat four years ago for £230,000... Lenders aren't really doing anything to help.'

Brilliant. Fully indoctrinated in the "HPI forever" brigade

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Pithy, informative journalism. What we all need from the Fourth Estate. I noted:

"Experts say the trend shows the housing market has become irrational and is 'out of sync' with the rest of the economy, "

It really made me  think - you know, these "experts" may have a point?

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I don't think that word means what she thinks it means.

Oh she doesn't even have the brains to think "Hang on, if our place is worth less than maybe the one we want to buy is too..." and even if she did, there is no way she would think "Whoah, dropping prices is good for us, every drop makes the next place more affordable". Even less likely is "Hmmm, perhaps those lenders are helping us after all". Clueless sheep, the lot of them. 

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Oh she doesn't even have the brains to think "Hang on, if our place is worth less than maybe the one we want to buy is too..." and even if she did, there is no way she would think "Whoah, dropping prices is good for us, every drop makes the next place more affordable". Even less likely is "Hmmm, perhaps those lenders are helping us after all". Clueless sheep, the lot of them. 

Dont try and reason with anyone when it comes to pwopatee.

All you need to know is the more someone pays someone else for a house the richer they person buying the house must be.....

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Pithy, informative journalism. What we all need from the Fourth Estate. I noted:

"Experts say the trend shows the housing market has become irrational and is 'out of sync' with the rest of the economy, "

It really made me  think - you know, these "experts" may have a point?

Aren't we at the point where we don't need 'lefty beardy sandal-wearing "experts" ' telling us what to do.

3 word slogans that's what we need - get buying now, innit

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From what I'm reading and hearing is that flats are declining in value but houses are still maintaining levels. With vaccines potentially being released in the next few months, I wouldn't be surprised if things start increasing again but I still think unemployment and hours worked will play a major role. Here's hoping.....

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From what I'm reading and hearing is that flats are declining in value but houses are still maintaining levels. With vaccines potentially being released in the next few months, I wouldn't be surprised if things start increasing again but I still think unemployment and hours worked will play a major role. Here's hoping.....

The economic shock is built in.  If everything went back to normal overnight, there is no way to consume all the slack created to restore spend.  The economic hit is already being felt in rent write downs, CVAs, and job losses.  The secondary impact of reduced travel, more WFH, Tax and Loan repayments will create another shockwave.

House prices are a lagging indicator, but have a massive impact on future sentiment hence the effort in propping up things and keeping the 'feel good' factor going. 

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I've noticed lots of flats in Edinburgh going for 135k ish... Many have changed to 'fixed price', which indicates that there's too many flats and too fewer people buying them... I expect things to get worse into the New Year before they get any better.... 2021 will be the year of house price decline... 

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I've noticed lots of flats in Edinburgh going for 135k ish... Many have changed to 'fixed price', which indicates that there's too many flats and too fewer people buying them... I expect things to get worse BETTER into the New Year before they get any better WORSE.... 2021 will be the year of house price decline... 

I've fixed that for you.

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I've noticed lots of flats in Edinburgh going for 135k ish... Many have changed to 'fixed price', which indicates that there's too many flats and too fewer people buying them... I expect things to get worse into the New Year before they get any better.... 2021 will be the year of house price decline... 

I think what people are seeing is the AirBnB demand being killed off by lockdown and some people at the margins wanting to liquidate, also some people maybe wanting to exit city living through fearing another lockdown and being stuck inside with kids/partner for another summer. 

I'm not expecting the SDLT holiday to be over in March but could be proved wrong. I'd also expect mortgage rates to fall once the crazy spike in demand abates. 

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https://www.dailymail.co.uk/news/article-8952055/Property-market-panic-lenders-slash-thousands-pounds-value-homes.html

Property market panic as lenders slash thousands from value of homes, sparking fears buyers will pull out

  • Data shows the average asking price for a home soared to £323,530 in October 
  • Came as sellers cashed in on unprecedented demand during stamp duty holiday
  • But almost half now being told their property is worth less than they had asked 

"Homeowners are having tens of thousands of pounds cut from the value of their properties by lenders.

The average asking price of a home soared to £323,530 in October as sellers cashed in on unprecedented demand during the stamp duty holiday.

But almost half are now being told their property is worth less than they had asked, according to estimates.

Deals are collapsing as a result, and there are fears of a surge in buyers pulling out of purchases next year."

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  • 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%



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