Jump to content
House Price Crash Forum
Woot

Houses Like Hot-cakes?

Recommended Posts

Apparently houses are NOT shifting like hot-cakes after all. The Halifax auction report for April shows 12 of 79 lots remained unsold.

I thought there was a housing shortage with hundreds queueing for every property to come onto the market...?

TD

Its all bull poo,if there had been a shortage how were over 300000 BTL properties bought last year.

Did they come from outer space.

Share this post


Link to post
Share on other sites
Apparently houses are NOT shifting like hot-cakes after all. The Halifax auction report for April shows 12 of 79 lots remained unsold.

I thought there was a housing shortage with hundreds queueing for every property to come onto the market...?

TD

This looks like a big reality check. Not only several lots unsold, the whole auction looks very, very slow

Most sold lots have winning bids the same or just a few thousand more than the opening bid- not much bidding up then, usualy property auctions bid up in £5K or £10K increments

The 'unsold' lots all have bids but no sale- perhaps the bidding did not meet reserve price?

5 lots got no bids at all

Is this just a crappy catalogue of undesirable property or a sign of things to come?

Edited by Sonic the Hedge Fund

Share this post


Link to post
Share on other sites
Apparently houses are NOT shifting like hot-cakes after all. The Halifax auction report for April shows 12 of 79 lots remained unsold.

I thought there was a housing shortage with hundreds queueing for every property to come onto the market...?

TD

That's my view too but a friend of mine 'Put Me Right' by saying that 'There will never be a housing shortage due to the amount of immigrants coming into this country from places like Poland'....

And I asked him where they would get the money from to buy a house but he was unable to answer that...

Share this post


Link to post
Share on other sites
Apparently houses are NOT shifting like hot-cakes after all. The Halifax auction report for April shows 12 of 79 lots remained unsold.

I thought there was a housing shortage with hundreds queueing for every property to come onto the market...?

TD

Barnard Marcus

And if you look at the results for the Barnard Marcus auction in May they have only sold 75% on their lots....

It looksl ike things are getting worse.... :)

Share this post


Link to post
Share on other sites
Barnard Marcus

And if you look at the results for the Barnard Marcus auction in May they have only sold 75% on their lots....

It looksl ike things are getting worse.... :)

Does anyone have comparable stats for say late 2006? Actually that wont do coz the GC2 started then - how about Q1 2006? If auction stats are telling us the wheels are coming off, can we have some comparables?

Share this post


Link to post
Share on other sites
This looks like a big reality check. Not only several lots unsold, the whole auction looks very, very slow

Most sold lots have winning bids the same or just a few thousand more than the opening bid- not much bidding up then, usualy property auctions bid up in £5K or £10K increments

The 'unsold' lots all have bids but no sale- perhaps the bidding did not meet reserve price?

5 lots got no bids at all

Is this just a crappy catalogue of undesirable property or a sign of things to come?

Maybe they should put them on price drop TV. ;)

Share this post


Link to post
Share on other sites
Does anyone have comparable stats for say late 2006? Actually that wont do coz the GC2 started then - how about Q1 2006? If auction stats are telling us the wheels are coming off, can we have some comparables?

http://www.markjenkinson.co.uk/home.asp

If it helps you can have a look at Mark Jenkinson (Sheffield) property auction results as they go back to 2001.

Share this post


Link to post
Share on other sites
http://www.markjenkinson.co.uk/home.asp

If it helps you can have a look at Mark Jenkinson (Sheffield) property auction results as they go back to 2001.

A student house at Belgrave Square, Sheffield, within easy reach of Sheffield Hallam University and producing over £14000 per annum, sold for £135,000,

How much do students pay these days? Either that, or how big was the house? If you can pay the mortgage off in a year im going to look at buying some!!!

Share this post


Link to post
Share on other sites
Does anyone have comparable stats for say late 2006? Actually that wont do coz the GC2 started then - how about Q1 2006? If auction stats are telling us the wheels are coming off, can we have some comparables?

Pretty full auction stats are available from the Essential Information Group:

http://www.eigroup.co.uk/newsletters/2007/June.html

National Auction Analysis

May 07 saw a big increase in the number of lots offered when compared with May 06. However the percentage sold slipped 9 points to 68% and the total raised was down on last May as well. Similar, but not so large, trends were seen in the 'rolling quarter' as well. The 'year on year' figures showing a 11% increase in lots offered, sale rate holding firm at 75%, and a 17% increase in amount raised.

I have tabulated the data below, and included an average price line; Total Raised divided by Total Sold, shown coloured.

june_07_auction_data.jpg

On a monthly basis this canary is singing very loudly indeed.

Average prices down nearly 17% MoM. This is only just beginning to show up on the quarterly averages, and not at all on the annual averages.

Note that the regional figures are based on quarterly averages, so they aren't showing the big price drops yet.

Some caution needs to be exercised given the relatively small volumes and potential for significantly different property mixes from month to month.

We will need to wait two more months to confirm that the average price drops are happening, and where they are happening.

The figures on numbers going for auction and numbers sold show a very clear trend.

Numbers being sold are up more than 10% even on the annual data. This means that the financial stress is out there and it is having very serious effects. This is a 10% rise in annual data, and these are properties that have been through the whole process of running up arrears, and going through repossession, a process I imagine would take most of six months minimum. So must of these results precede recent interest rate rises.

Percentage not sold is more than 10% up on the quarterly and monthly figures, which strongly suggests that it has already turned from a sellers to buyers market.

If that is the case, then expect the reserve prices, especially of repos, to be dropped dramatically to ensure sales go through.

Then the carnage begins.

post-7856-1182844821_thumb.jpg

Share this post


Link to post
Share on other sites
Apparently houses are NOT shifting like hot-cakes after all. The Halifax auction report for April shows 12 of 79 lots remained unsold.

It was worse than that, 12 unsold but that were the ones which had no bids, there were a further 5 which didn't even attract a bid so 17 unsold is the full figure.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.