TheJudge Posted March 24, 2006 Share Posted March 24, 2006 Have been keeping a very watchful eye on all of the comings and goings in my local property market for some time now. I would say that in the past similar houses in the same locality tend to have very similar asking prices (people sticking with the pack). But this seems to have broken down. Very similar houses, very different prices. 4 bed semi on at £239k 4 bed semi round the corner on a slightly cheaper road is on at £285k approx 20% difference 5 bed semi on at £575k 5 bed detached round the corner on at £475k approx 20% difference I know these houses. The price difference is not justified. And slightly further afield, different houses but going in very different directions: 3 bed bungalow with large garden - was on last year at £495k, now dropped to £375k. 3 bed cottage right next to a train track sold 20 months ago for £430k. They have painted all of the wooden beams (not sure this is an improvement), turned part of the living room into a fourth bedroom, and it is now back on the market for £700k. Some people are trying it on. Others are taking a more realistic approach. Quote Link to comment Share on other sites More sharing options...
needle Posted March 25, 2006 Share Posted March 25, 2006 If you had some links or postcodes we could look into it. You make some interesting points - but you'll get shot down without putting up some links. (dont say I didnt warn ya!! ) People on here are very independent minded and like to do their own research. Quote Link to comment Share on other sites More sharing options...
New Bear Posted March 25, 2006 Share Posted March 25, 2006 If you had some links or postcodes we could look into it. You make some interesting points - but you'll get shot down without putting up some links. (dont say I didnt warn ya!! ) People on here are very independent minded and like to do their own research. Fair enough point - some links would help. BUT I think needle may be on to something. This sort of turbulence would fit with the contradictory things people see around them; houses not selling for months vs headlines saying prices are rising again. Maybe general confidence in the property market is being replaced by uncertainty? Quote Link to comment Share on other sites More sharing options...
Annie Posted March 25, 2006 Share Posted March 25, 2006 I haven't been noting anything on paper but I can relate to what you're saying. There seems to be no consistency in asking prices for similar properties in the area we're looking at. There used to be FTB-type houses and ex-council properties in the 215,000 bracket that are now on between 190,000 to 200,000, but the more expensive the property the more inconsistent the asking price (it seems). Quote Link to comment Share on other sites More sharing options...
TheJudge Posted March 25, 2006 Author Share Posted March 25, 2006 I have not provided links because it is all a bit close to home, and I like my anonymity. Call me paranoid but alot of people read this forum (local estate agents, the local mafia etc). So sorry, but you will have to do your own research, and see if what I am saying also applies in your area. If what I am seeing is a one-off then it is irrelevant. If other people have noticed the same thing (house prices all over the place) then it could be an interesting indicator of mixed market sentiment / market instability etc. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 25, 2006 Share Posted March 25, 2006 Something to bear in mind. Ex Authority Propeties..........Flats...............Shared Ownership Properties. All will become completely and utterly worthless when the recession hits. Bear that in mind if you are thinking of buying, or if you own one today. Quote Link to comment Share on other sites More sharing options...
Pablo-silver or lead? Posted March 25, 2006 Share Posted March 25, 2006 The Market Will Out. Sentiment is changing from Buy Buy Buy to Hold to Sell. When sentiment in an iliquid market such as properties changes indicators such as asking prices, price differentials and percived values become corupted and therfore give conflicting readings. A generation of Product Marketing people in Financial Institutions and their customers have grown up with historically low IR. This has resulted in debt levels (mort/Short term credit) that will be a disater as IR rise and rise they will. For all their faults I don't blame EA or even greedy, stupid vendors for anomolistic pricing. The people who now have the real controll are the buyers, use it wisely and the correction that is underway will gain a self fullfilling momentum. Pablo Silver or Lead? Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted March 25, 2006 Share Posted March 25, 2006 its because no one knows what a house is really worth. add to that the mix of buyers opinion. they also dont know whats what. agents just add 10k to anything to get the job on the books. they no nothing. they have no qualifications. or experience usually. its all gone daft. best to stay well away for 2 years. let it settle down fully. i know they are overpriced compared to cars and other purchases. some people think theres some sort of magical monopoly. im not going to fuel their delusions with MY savings. Quote Link to comment Share on other sites More sharing options...
Yandros Posted March 25, 2006 Share Posted March 25, 2006 Something to bear in mind. Ex Authority Propeties..........Flats...............Shared Ownership Properties. All will become completely and utterly worthless when the recession hits. Bear that in mind if you are thinking of buying, or if you own one today. Absolutely!!! When and if we get a crash, ignore average % drops - they hide the truth as always. We may find only 20% falls in larger properties, but 60% in studio flats. As soon as houses become affordable, NOBODY BUYS FLATS! Quote Link to comment Share on other sites More sharing options...
Bedsprings Posted March 25, 2006 Share Posted March 25, 2006 (edited) Our local intelligent EA says that it is a really fickle market - one fairly ordinary 3 bed house not too far from the sewage works, had 7 lots of people fighting over it, so it's gone to sealed bids, yet a very pleasant house, at an equally 'good' price, has had absolutely no interest. I've noticed this too - some really nice houses in good roads aren't shifting, even when the vendors lower the price to something almost reasonable, yet others go really quickly. Edited March 25, 2006 by Bedsprings Quote Link to comment Share on other sites More sharing options...
JohnG Posted March 25, 2006 Share Posted March 25, 2006 Something to bear in mind. Ex Authority Propeties..........Flats...............Shared Ownership Properties. All will become completely and utterly worthless when the recession hits. Bear that in mind if you are thinking of buying, or if you own one today. Complete and utter total b0ll0x. Yes, prices might fall, but there's always a level at which somebody is prepared to buy. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 25, 2006 Share Posted March 25, 2006 Flats become worthless because the maintenence charges are hiked, most ground rents are owned by builders when the work dries up off they go to do up their freehold ground rents which is directly charged to the Tenant/Owner. Ex Authority houses couldnt be shifted for the price of shifting a 6Cubic Metre Skip in the last recession. When property is available yet again at less than cost, where do ex authority houses go for buyers ?. I used to run a very well know property website, and I can remember houses in Manchester ex Authority, two for the price of one, 500 quid. In fact, acres and acres of streets were knocked down to create parks. Quote Link to comment Share on other sites More sharing options...
BufferBear Bitcoin Bull Posted March 25, 2006 Share Posted March 25, 2006 I agree. Once the correction is established, ex-LA property, 2 b/r flats and studios will plummet in value, just like last time. People may continue to buy 1 b/r flats but anyone who was thinking of a studio, will simply purchase a 1 b/r and those considering a 2 b/r flat are more likely to go for a house. Quote Link to comment Share on other sites More sharing options...
John Smith Posted March 25, 2006 Share Posted March 25, 2006 3 identical houses for sale in a street next to mine. 1 in middle for £250k, 2 either side for £280k. Thought the £280k ones were over priced - the £280k price has remained the same for a year. Guess which ones have been up for sale for a year, guess which one sold within 2 months? The one that has sold (£250k) was bought for ... wait for it ... £250k 18months ago. If the buyers have offered less, then in my books this means the HPI of this house has gone negative. hmmmmm ... me thinks the houses either side will now come down ... Quote Link to comment Share on other sites More sharing options...
keepwatching Posted March 25, 2006 Share Posted March 25, 2006 Complete and utter total b0ll0x. Yes, prices might fall, but there's always a level at which somebody is prepared to buy. Which level would YOU buy at then ???? For instance if you could afford to buy your own house instead..... Quote Link to comment Share on other sites More sharing options...
redwing Posted March 25, 2006 Share Posted March 25, 2006 3 identical houses for sale in a street next to mine. 1 in middle for £250k, 2 either side for £280k. Thought the £280k ones were over priced - the £280k price has remained the same for a year. Guess which ones have been up for sale for a year, guess which one sold within 2 months? The one that has sold (£250k) was bought for ... wait for it ... £250k 18months ago. If the buyers have offered less, then in my books this means the HPI of this house has gone negative. hmmmmm ... me thinks the houses either side will now come down ... I've looked at a development of houses and flats in Cambridge. They were first sold (as new) in 2002/2003. There has been a steady trickle of second sales. 15 in total. Of which 7 have fallen in price. More info here: http://www.housepricecrash.co.uk/forum/ind...showtopic=26275 Sorry in advance at the poor tabulation. Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted March 25, 2006 Share Posted March 25, 2006 You ain't imagining it Judge. I had a drama over a 2 bed flat in Peckham. Was on the market last year through Halifax for 129. After about 3 months reduced to 124. I put in an offer of 111 which the estate agent told me in haughty tones "we already have an ACCEPTABLE offer for that place". I was gutted since that was the most I could afford. It was taken off rightmove and put back a couple of days later. Then disheartened, I didn't even bother to pursue it anymore, but I did follow it. It languished for months. Finally they put it through hammersmith auctions and it was passed in at 87. The reserve was set at 109 by this stage. I didn't even think to go to the auction since I am a novice and didn't want to get into a bidding situation. They then put it back on the market through a different agent for 145! (I'm like WHAT???)... I just checked ourproperty.co.uk and it finally was sold in the beginning of November for 97. It is only the second flat to be sold under 100K in that location since 2002. Times are a changin Quote Link to comment Share on other sites More sharing options...
JohnG Posted April 1, 2006 Share Posted April 1, 2006 Which level would YOU buy at then ???? For instance if you could afford to buy your own house instead..... It depends on location & what I want the house for. Own use, BTL, Children's university accommodation, each have their own parameters. Own use is driven mainly from the heart, the rest are down to the numbers. I will, however concede to LaureJohn's point. There are places where I would NEVER buy, irrespective of price. I'm sure LJ knows of instances where groups of houses were bought up by local dealers who rented them out to their junkie custmers. I suppose there are places now which 'have a value' that they shouldn't have, so in that respect they may 'become ' worthless. Quote Link to comment Share on other sites More sharing options...
Glitterygook2 Posted April 1, 2006 Share Posted April 1, 2006 Have been keeping a very watchful eye on all of the comings and goings in my local property market for some time now. I would say that in the past similar houses in the same locality tend to have very similar asking prices (people sticking with the pack). But this seems to have broken down. Very similar houses, very different prices. 4 bed semi on at £239k 4 bed semi round the corner on a slightly cheaper road is on at £285k approx 20% difference 5 bed semi on at £575k 5 bed detached round the corner on at £475k approx 20% difference I know these houses. The price difference is not justified. And slightly further afield, different houses but going in very different directions: 3 bed bungalow with large garden - was on last year at £495k, now dropped to £375k. 3 bed cottage right next to a train track sold 20 months ago for £430k. They have painted all of the wooden beams (not sure this is an improvement), turned part of the living room into a fourth bedroom, and it is now back on the market for £700k. Some people are trying it on. Others are taking a more realistic approach. Deffo - as I said on another thread. I have a neighbour either side of me trying to sell their houses - they are identical semis - honestly no difference. I've just sole mine and one neighbour is on at £40K more than I got and one is on at £30K more than I got. They've got nooooo chance! I honestly think they've gone against EA opinion too - my EA is laughing her head off at their asking prices. Quote Link to comment Share on other sites More sharing options...
frugalstar Posted April 1, 2006 Share Posted April 1, 2006 Deffo - as I said on another thread. I have a neighbour either side of me trying to sell their houses - they are identical semis - honestly no difference. I've just sole mine and one neighbour is on at £40K more than I got and one is on at £30K more than I got. They've got nooooo chance! I honestly think they've gone against EA opinion too - my EA is laughing her head off at their asking prices. You sound like your scared. Quote Link to comment Share on other sites More sharing options...
Glitterygook2 Posted April 1, 2006 Share Posted April 1, 2006 You sound like your scared. Scared of what? That I've sold too low? Even if prices start to go up again and I could have got more if I'd waited - I've made my decision based on circumstances at the time of the offer and that's as much as I can do - I don't know what will happen in 3-6 months time. I've still got a good deposit for my next house out of it and I've made a signficant jump 'up the ladder'. If I've made a 'duff' decision wrt what I could have got, I'll live with it. It's not exactly like a diagnosis of cancer is it? I've been through enough in my life to have perspective on this kind of thing. Anyhow of them has been on the market for 2 years so that's got to tell you something about their asking price, no? Quote Link to comment Share on other sites More sharing options...
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