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We Don't Have The Numbers Yet But......

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It started five days ago.

For the past six months everyone has been looking forward to interest rate falls. These never materialised interest rates are pointing skywards. Even if interest rates remained stable (which they won't) taxes will ravage your finances over the coming 12 months.

If you are in the process of house and the recent news has not scared you off, you almost certainly need professional help (both medical and financial).

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It started five days ago.

For the past six months everyone has been looking forward to interest rate falls. These never materialised interest rates are pointing skywards. Even if interest rates remained stable (which they won't) taxes will ravage your finances over the coming 12 months.

If you are in the process of house and the recent news has not scared you off, you almost certainly need professional help (both medical and financial).

Seems to be scaring some off. Three houses I was watching on Rightmove have had their SSTC lables removed this week and are back on the market. One for the third time this year.

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Seems to be scaring some off. Three houses I was watching on Rightmove have had their SSTC lables removed this week and are back on the market. One for the third time this year.

I've been watching for this around my way, and I haven't seen it happen once.

Billy Shears

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Happens quite often round here Billy

Unexpectedly re-avaiable is the line

CS

Same with my local property sheet the Alcester Herald Tribune (Covers West Midlands-Stratford, Alcester, Bromsgrove, Redditch). Increasing numbers of "unexpectedly back on the market." Starting this week there are a few "Price Reduced" which is a change from the more common "New Price" designation.

Its propbably because the SSTC are tied up in huge chnains that are stagnat due to FTBs backing out or not materialising. IN a dying market we should see a lot more dissappointment among sellers who thought they had offloaded their millstone for the freedom of a rental while prices collapse.

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I imagine that for the next week or two, many Agents will be quietly revisiting failed offers in an effort to avoid the bad publicity of putting the house back on the market.

Edited by dog

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Inflation (therefore higher rates) spooked the markets.

In a way I agree with this. But.......................

Overall SENTIMENT has changed. THAT is what markets are all about.

Potential IR hikes are being talked about. How many ( I'm thinking of US here) have we had with "no effect".

Ask yourself why hurricanes, Iran, Iraq and London bombings etc were ignored (certainly not reflected) during the SM / Housing market bull run.

Compare these factors with a potential 0.25% hike - no comparison is there?

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Same with my local property sheet the Alcester Herald Tribune (Covers West Midlands-Stratford, Alcester, Bromsgrove, Redditch). Increasing numbers of "unexpectedly back on the market." Starting this week there are a few "Price Reduced" which is a change from the more common "New Price" designation.

Its propbably because the SSTC are tied up in huge chnains that are stagnat due to FTBs backing out or not materialising. IN a dying market we should see a lot more dissappointment among sellers who thought they had offloaded their millstone for the freedom of a rental while prices collapse.

Excellent post. Love the "freedom of a rental.." bit. Very succinct. A*

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This is a fantastic education, far better than you'd get at any business school.

Watching the biggest property bubble in history collapse.

Enjoy it while you can.

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Same with my local property sheet the Alcester Herald Tribune (Covers West Midlands-Stratford, Alcester, Bromsgrove, Redditch). Increasing numbers of "unexpectedly back on the market." Starting this week there are a few "Price Reduced" which is a change from the more common "New Price" designation.

I've seen four properties along Evesham Road in Astwood Bank being offered for sale by two sets of agents. Been like that since before Easter. Bearing in mind a previous discussion on the forum I think that means they've been for sale for a while exclusively with one agent but didn't shift, hence the second instruction?

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the signs are there, I worry for my sister who brought only 2 months ago.

This was under pressure from my parents who reckon it will just flatline rather then drop and because they were facing a rent hike.

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the signs are there, I worry for my sister who brought only 2 months ago.

This was under pressure from my parents who reckon it will just flatline rather then drop and because they were facing a rent hike.

Parents must be one of the major causes of the bubble. Because money fell out of the sky for them, they seem to think the same thing must happen for their children. So they pester their children to buy and entice them with large chunks of money for deposits. I'm sure the city must have a phrase for idiots who think they understand a market on the basis of a single experience. Apparantly a lot of gamblers become hooked for life by one big success.

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Parents must be one of the major causes of the bubble. Because money fell out of the sky for them, they seem to think the same thing must happen for their children. So they pester their children to buy and entice them with large chunks of money for deposits. I'm sure the city must have a phrase for idiots who think they understand a market on the basis of a single experience. Apparantly a lot of gamblers become hooked for life by one big success.

And if house prices go down, then some of that money that just fell from the sky will then go down the drain.

Billy Shears

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Be careful on how you judge sentiment. It swings back and forth like a pendulum, in a couple of months it will probably be bullish again.

I just checked the sold prices in my area, was very surprised to see that most are selling at asking price. Doesn't anyone try to negotiate anymore!!!?

:(

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I just checked the sold prices in my area, was very surprised to see that most are selling at asking price. Doesn't anyone try to negotiate anymore!!!?

:(

Not when demand outstrips supply

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"Demand outstrips supply" OH my aching sides. WHy are there houses for sale for more than a week then? Come on!

Because it's not a perfect market. For any given house there is a limited number of buyers who may take a while to view it, to make an offer etc etc. It's a bit ludicrous to say that if a house takes a month or two to sell that proves that demand doesn't exceed supply. If it sells at the price within a reasonable timeframe, then there is sufficient demand for that house at that price.

At any stage of the property booms (not saying that we're in one now...) you could find examples of houses that were on the market for more than a week, maybe even for a few months, so don't use this as any kind of clinching argument.

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Because it's not a perfect market. For any given house there is a limited number of buyers who may take a while to view it, to make an offer etc etc. It's a bit ludicrous to say that if a house takes a month or two to sell that proves that demand doesn't exceed supply. If it sells at the price within a reasonable timeframe, then there is sufficient demand for that house at that price.

At any stage of the property booms (not saying that we're in one now...) you could find examples of houses that were on the market for more than a week, maybe even for a few months, so don't use this as any kind of clinching argument.

Once you decide to sell and put your property on the market, I would suggest that if you don't have an offer within 4-6 weeks (max) then the price is wrong. If it hasn't sold after 12-18 months then you don't really want to sell - i.e. there is no "willing seller" which I believe is usually required.

JY

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If it hasn't sold after 12-18 months then you don't really want to sell - i.e. there is no "willing seller" which I believe is usually required.

Very true, I believe we are seeing such high asking prices because the market has many people putting their houses up for sale with little intension of moving. Why, you may ask, well I think many homeowners can’t believe their luck at just how much the sheeple are prepared to borrow to buy their ordinary houses. I strongly believe that many home owners put their properties on the market for ridiculously high prices with the mindset that if someone will give them that price for their house then they are prepared to move even if they would not normally consider it.

This of course gives the real sellers false hope and encouragement about the true value of their own property.

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Thats another thing, I do think we have a housing shortage here probably mainly due to no new council housing been built and immigration. So although the economy login tells me a drop has to happen sooner or later, the other side of me says how it can happen when their is a shortage of supply.

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Thats another thing, I do think we have a housing shortage here probably mainly due to no new council housing been built and immigration. So although the economy login tells me a drop has to happen sooner or later, the other side of me says how it can happen when their is a shortage of supply.

It is all about scale. Has there been immigration? Yes. Maybe a million people over the last 10 years, taking the population from 59 million to 60 million.

Has there been a freeze on council housing? Yes, but around 1.5 - 2 million private homes were built in the last 10 years.

So what caused prices to treble in under ten years?

Increased demand and supply shortages simply do not explain the whole rise. Maybe half of it.

The rest was speculation.

frugalista

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"Demand outstrips supply" OH my aching sides. WHy are there houses for sale for more than a week then? Come on!

1 week is a bit ambitious, takes a bit longer these days but they the market does seem quite healthy here at the moment.

BTW, a house for sale down the road did sell within a week.

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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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