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luddite

Two-tier Market.

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I have been looking at properties that have been on the market for many months and I am now noticing something strange - is it happening down your way too?

1) Stuff being withdrawn from the market. Two this weekend that I planned to view and two others quite recently. Obviously no prospect of achieving the 2004/2005 price now so the vendor gets fed up and retreats to contemplate plan B.

2) lots of property coming on at 10% or more below last years prices and apparently selling well. This is in line with the Halifax's reported falls. Ive seen some even larger reductions which are perhaps in the hope of generating a lot of interest very quickly and the property going to sealed bids.

3) lots of property coming on at 10% or more ABOVE last years prices. This is crazy! I saw a 3 bed flat go for £275K and then a 2-bed version in the same block comes on at .... £330K Just crazy! The only conclusion is that EAs know that achievable prices have actually fallen so ramp-up the asking prices even more to give the illusion of a constantly rising market and that a buyer should not delay! - but with no real expectation of hitting the asking price. A buyer may feel good about negotiating a 10% discount but in reality a 20% haircut is called for just to get back to the real value according to the Halifax.

To conclude, if last years price of £279 is no longer working then what shall we do this year? Shall we go with £249,950 or with £315,000?

Is this unique to the gentile folk of Harrogate or are other parts of the UK seeing it too?

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I can't work out our area - there's certaining loads of properties that have been on the market for ages (Keighley/Skipton way). Quite a few "for sale" signs have mysteriously disapeared. Wow - There seems to loads of you on here from Harrogate! Why is this?

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I think there is a multi-tiered market:

1. Any priced property which can hype its way into being desirable to the stupid, the naive and the gullible.

2. Properties in the upper range which are mutually exchanged between those in the same income bracket,

3. Properties which somehow manage to be promote as being "rare opportunities" in a "desirable" area.

4. Flats and apartments which local councils manage to flog in partnership with so-called shared ownership schemes, which are in fact scams masquerading as something different (see point 1).

5. Homes which could be rented for a fraction of the asking price but so many idiots are convinced that being an "owner" of it (ie: having a 100% mortgage and not actually owning anything) is somehow more attractive than paying half that amount and renting.

Until this massive con of really rather stupid people is curtailed I expect the same thing will go on and on until the real situation is plastered all over the daily press in big black letters, and even then it seems the British public will still be reluctant to believe that property is not the investment they are convinced it always will be.

Solution: Take property out of the zone of "investment" and declare it a national asset too important to be manipulated by spivs and smart-alecs, but of course this is far too "left" for any normal person to contemplate, so the same game goes on and on.

VP

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  • 301 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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