highcontrast Posted November 16, 2020 Share Posted November 16, 2020 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." Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted November 16, 2020 Share Posted November 16, 2020 What is the average downward valuation? Quote Link to comment Share on other sites More sharing options...
Si1 Posted November 16, 2020 Share Posted November 16, 2020 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.' Quote Link to comment Share on other sites More sharing options...
Si1 Posted November 16, 2020 Share Posted November 16, 2020 (edited) Edited November 16, 2020 by Si1 Quote Link to comment Share on other sites More sharing options...
hotblack42 Posted November 16, 2020 Share Posted November 16, 2020 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. Quote Link to comment Share on other sites More sharing options...
ForGreatLager... Posted November 16, 2020 Share Posted November 16, 2020 What is the average downward valuation? I reckon if house prices soar at 3%, then they’re slashed at 1.5% 😉😁 Quote Link to comment Share on other sites More sharing options...
Roman Roady Posted November 16, 2020 Share Posted November 16, 2020 Quote Link to comment Share on other sites More sharing options...
Chunketh Posted November 16, 2020 Share Posted November 16, 2020 Waiting on one myself at the moment. The lender has actually sent somebody around for a proper valuation. Quote Link to comment Share on other sites More sharing options...
Huggy Posted November 16, 2020 Share Posted November 16, 2020 Lenders aren't really doing anything to help. I don't think that word means what she thinks it means. Quote Link to comment Share on other sites More sharing options...
24gray24 Posted November 16, 2020 Share Posted November 16, 2020 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. Quote Link to comment Share on other sites More sharing options...
PaulTW Posted November 16, 2020 Share Posted November 16, 2020 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 Quote Link to comment Share on other sites More sharing options...
dryrot Posted November 16, 2020 Share Posted November 16, 2020 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? Quote Link to comment Share on other sites More sharing options...
GeneCernan Posted November 16, 2020 Share Posted November 16, 2020 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. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 16, 2020 Share Posted November 16, 2020 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..... Quote Link to comment Share on other sites More sharing options...
msi Posted November 16, 2020 Share Posted November 16, 2020 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 Quote Link to comment Share on other sites More sharing options...
Sprite Posted November 16, 2020 Share Posted November 16, 2020 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..... Quote Link to comment Share on other sites More sharing options...
msi Posted November 16, 2020 Share Posted November 16, 2020 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. Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted November 16, 2020 Share Posted November 16, 2020 I reckon if house prices soar at 3%, then they’re slashed at 1.5% 😉😁 Quote Link to comment Share on other sites More sharing options...
Julie Clot Posted November 16, 2020 Share Posted November 16, 2020 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... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 16, 2020 Share Posted November 16, 2020 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. Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted November 16, 2020 Share Posted November 16, 2020 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. Quote Link to comment Share on other sites More sharing options...
satsuma Posted November 16, 2020 Share Posted November 16, 2020 I know one person forced to sell their AirBnb and another looking to move, in both cases the valuation came back less than the agreed price, they dont have the balance unless they can get a personal loan. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted November 16, 2020 Share Posted November 16, 2020 3 word slogans that's what we need - get buying now, innit Buy a home Protect house prices Save banks Quote Link to comment Share on other sites More sharing options...
papag Posted November 16, 2020 Share Posted November 16, 2020 Buy a home Protect house prices Save banks LOL 🤣🤣 Quote Link to comment Share on other sites More sharing options...
Tapori Posted November 16, 2020 Share Posted November 16, 2020 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." Quote Link to comment Share on other sites More sharing options...
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