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Ea's: Huge Jam Up In House Sales


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I spoke to 2 EA's over last 2 days: One operates in SW & W London, other in South West - Bournemouth Poole area. Both said they have never known anything like it in 10-15 years in the business; absolutely choked up with houses on the books which just will NOT SELL. SW London EA says exactly the same thing. It is a huge effort for them to get sellers to understand that they have NO CHANCE of selling unles they lower their prices quite considerably - and even then - it's like feeding a massive whale to one shrimp: Very few buyers if any out there - most FTB's have not got anything like the money required to even buy a cupboard. All this straight from the coalface/horses mouth of the housing market.

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I spoke to 2 EA's over last 2 days: One operates in SW & W London, other in South West - Bournemouth Poole area. Both said they have never known anything like it in 10-15 years in the business; absolutely choked up with houses on the books which just will NOT SELL.  SW London EA says exactly the same thing. It is a huge effort for them to get sellers to understand that they have NO CHANCE of selling unles they lower their prices quite considerably - and even then - it's like feeding a massive whale to one shrimp: Very few buyers if any out there - most FTB's have not got anything like the money required to even buy a cupboard. All this straight from the coalface/horses mouth of the housing market.

Excess supply + decreasing demand = HPC

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Got to say looking at agents round by me...seeing a lot of new stock and still all the old ones.

But they are still way over the top. Houses we want are at the £450k - £500k mark. I need that to come down to £300k - £350k

Hopefully it happens. In the meantime this year me and the missus are on an agreed stingy git mode. Seeing just how much we can add to the deposit.

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I spoke to 2 EA's over last 2 days: One operates in SW & W London, other in South West - Bournemouth Poole area. Both said they have never known anything like it in 10-15 years in the business; absolutely choked up with houses on the books which just will NOT SELL.  SW London EA says exactly the same thing. It is a huge effort for them to get sellers to understand that they have NO CHANCE of selling unles they lower their prices quite considerably - and even then - it's like feeding a massive whale to one shrimp: Very few buyers if any out there - most FTB's have not got anything like the money required to even buy a cupboard. All this straight from the coalface/horses mouth of the housing market.

this seems to be a more realistic view of what is happening on the ground than dogbox's bizarre rants on how properties are being snapped up all across the board.

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Got to say looking at agents round by me...seeing a lot of new stock and still all the old ones.

But they are still way over the top. Houses we want are at the £450k - £500k mark. I need that to come down to £300k - £350k

Hopefully it happens. In the meantime this year me and the missus are on an agreed stingy git mode. Seeing just how much we can add to the deposit.

Very very good luck to you jpjh: Whatever you do, do NOT allow yourself to be talked into a crazy/stupid mortgage - like those poor S*ds who fell for the so-called "Self-Cert" mortgages; they are going to ruin their lives. The golden rule, which is entirely logical, is pay only what you can afford: i.e. 3.5 x your salary + deposit. If you and EVERYONE ELSE sticks to that formula - you will always sleep in peace & keep your family safe. The sharks are out therejust waiting to do what they've been doing for the last 5-6 years - eat you alive with a cr*ppy RIP-OFF mortgage; do not fall for this. THe signs are definitely out there now: sinking prices, sinking market: The music has stopped: The Worlds Largest Pyramid Selling Scam - (the uk housing market) is OVER: The perpetrators [banks, Building Socs, Mortgage Co:'s; Property Speculators; EA's; BTLetters etc.] have fled the sinking ship, the ones left holding the baby are about to self-destruct.

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I spoke to 2 EA's over last 2 days: One operates in SW & W London, other in South West - Bournemouth Poole area. Both said they have never known anything like it in 10-15 years in the business; absolutely choked up with houses on the books which just will NOT SELL.  SW London EA says exactly the same thing. It is a huge effort for them to get sellers to understand that they have NO CHANCE of selling unles they lower their prices quite considerably - and even then - it's like feeding a massive whale to one shrimp: Very few buyers if any out there - most FTB's have not got anything like the money required to even buy a cupboard. All this straight from the coalface/horses mouth of the housing market.

I also think that quite a few households have put their houses on the market in the last few weeks. Which is why some EA are contradicting the above by saying buyers are returning. What you have is a lot more people trying to cash out and saying to EA " yeah im looking to buy". But can not until they sell. Explains all this nonsense about increased searches on property websites etc.

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Hopefully it happens. In the meantime this year me and the missus are on an agreed stingy git mode. Seeing just how much we can add to the deposit.

I have exactly the same attitude has you, but my significant other does not appreciate this. Just says I am being greedy and stingy. I have been trying this approach for over a year.At last it feels that these efforts might pay off.Last year I felt like there was no point saving has HPI exceeded any savings made.Maybe we'll have the last laugh.

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my significant other does not appreciate this

With all due respect BHU, your partner believes in a soft landing, doesn't he? Can you ask him to point to a single example of a "soft landing" in the history of asset prices after reaching a multi-year peak?

Just says I am being greedy and stingy.

BHU, I don't want to offend you, but your SO sounds like a bit of a tw*t (when it comes to house prices).

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BHU, I don't want to offend you, but your SO sounds like a bit of a tw*t (when it comes to house prices).

You're right ZZG113 he's not that clued in about house price changes- but no ones perfect. By the way I'm really impressed that you remembered I'd said this, you must have a photographic memory or something. :)

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HERE's MY APPROACH...

I received a rather amazing call from Foxton's this evening. 

I had registered an interest in finding a place TO RENT, and I got a call from a Foxtons agent, who asked me how I was getting on.  I told him that I had found a good place to rent and moved in already.

He then asked if I would consider buying. 

Without thinking much, I answered quickly, "Sure.  But I am waiting for prices to fall by 30-40%."

He said he didnt think that was very likely.

I said, "That's your opinion.  That fact is that it costs me 30-40% per month less to rent than it would if I bought.  And in my years of experience, the market would not be right for buying until the two, renting and owning, were of equal cost."

He started to object, and I interrupted him, saying: "Well you Estate Agents have talked the market up, and you are going to have to talk it back down again, if you want to see some business."

IT GOT ME THINKING...

If EAs started getting the same message from all potential buyers, it just might get them motivated... to talk the marKet back down.  These guys do not want to starve. 

Try it, maybe

Very good post Dr Bubb; I wonder about EA's!! Haven't they worked it out?!?!?! For them it's about TURNOVER!..............Duh.............. :P

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IT GOT ME THINKING...

If EAs started getting the same message from all potential buyers, it just might get them motivated... to talk the marKet back down.  These guys do not want to starve. 

Try it, maybe

I think I see the flaw here. Your argument implies that the w@nkers have a measure of intelligence and can understand that a static market is no good to them.

Last time this realization did not dawn until half of them had gone out of business and the other half had made half their staff redundant.

A redundant Estate Agent - contradiction in terms?

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I spoke to 2 EA's over last 2 days: One operates in SW & W London, other in South West - Bournemouth Poole area. Both said they have never known anything like it in 10-15 years in the business; absolutely choked up with houses on the books which just will NOT SELL.  SW London EA says exactly the same thing. It is a huge effort for them to get sellers to understand that they have NO CHANCE of selling unles they lower their prices quite considerably - and even then - it's like feeding a massive whale to one shrimp: Very few buyers if any out there - most FTB's have not got anything like the money required to even buy a cupboard. All this straight from the coalface/horses mouth of the housing market.

I must admit I did a tour between Bournemouth and Barton on Sea recently and every agent - with a bit of prodding - admitted its as dead as a dodo.

However, are you sure? Laurejon reported on here that stuff was 'flying off the shelves' in South Coast Agents. Perhaps they have a poltergeist. They would need some sort of paranormal activity - because there is no market activity.

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Come to think of it - phone calls are free these days.

I am going to have a merry hour on the phone tomorrow ringing agents and saying:

'You have a property for sale in Some Road. Is it still for sale?' (Think I'll start with a rhetorical question).

'Great, before I waste my time seeing it, I think it is overpriced. Will they take 50k less?'

'Expletive deleted'

'Well, can you ask them. Do they want any offers? If they don't get any offers they can't reject or consider them can they? Why are you so anti them getting 50k less. So you get 2k commission instead of 2.5k. Better than having it on the market for another 6 months and the vendor giving it to another agent.

Come on, wise up, do the smart thing. You know it makes sense.'

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Very very good luck to you jpjh: Whatever you do, do NOT allow yourself to be talked into a crazy/stupid mortgage - like those poor S*ds who fell for the so-called "Self-Cert" mortgages; they are going to ruin their lives. The golden rule, which is entirely logical, is pay only what you can afford: i.e. 3.5 x your salary + deposit. If you and EVERYONE ELSE sticks to that formula - you will always sleep in peace & keep your family safe.

I'm self employed. But still sticking to the 3.5 x salary rule. In fact probably going to be closer to 3.0 x salary. I don't what to shell out more than that even though I probably could. I'd rather pay it off quicker and save still more money.

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In Brighton where my girlfriend works as a solicitor doing mainly commercial and some residential property work I would say the market is tanking. Her main client who made and lost a fortune on property in the last cycle has been flogging his entire residential portfolio in the last year 18 months. He is now accepting offers 30% + below July valuations, and even then his last few properties are struggling to sell. He is buying nothing residential at all.

Remember the hideous programme the Block - 1.5 bedroom flats in Bright for £300k? The client I refer to above apparently said that was at least 100k too much. Anyone know what they sold for? (if they sold!)

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In Brighton where my girlfriend works as a solicitor doing mainly commercial and some residential property work I would say the market is tanking.  Her main client who made and lost a fortune on property in the last cycle has been flogging his entire residential portfolio in the last year 18 months.  He is now accepting offers 30% + below July valuations, and even then his last few properties are struggling to sell.  He is buying nothing residential at all. 

Remember the hideous programme the Block - 1.5 bedroom flats in Bright for £300k?  The client I refer to above apparently said that was at least 100k too much.  Anyone know what they sold for? (if they sold!)

Yogibear: I have a really good old mate -- he works for a guy who has been in the BTL game for 45 years: He too sold off his entire stock (many millions of £'s) over the last 18 months - and during last summer was accepting bids 15-25% under; he offloaded virtually all if not all his portfolio. My mate has been telling me that his Boss (45 yrs experience, remember) firmly believed by late 2003 that this was the biggest mother of all bubbles he had ever seen...... and he acted accordingly. Now - this is absolutely from the pro of pros......... . There can be no doubt people....... the bubble is going pop right now as you read this.......

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I'm a STR in Bournemouth, and the caretaker of my block told me today that a new development had gone under this week, it was a proposed development of 55 luxury apartments with sea views.

I walked round there today to check it out, sure enough the gates were shut and padlocked, no sign of life. The underground car park has been finished, but that's it, the builders have been pulled off, it seems they might have re-done their sums in a falling market and called a halt.

I remember this happening during the last downturn. :o

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BTW, I forgot to mention that there was a large EAs board on the building site- Stephen Noble, who also had a large advert on the front of our Property Weeklywhich went something like:-

"We are now preparing our property register for Spring 2005 and due to the very bouyant start to the year we are urgently looking for properties to market in Feb, March and April. We have been surprised by the amount of activity so early in the year not only from the local market, but purchasers from Midlands, London and the Home Counties. Therefore for a free market apraisal please contact etc, etc, etc."

This agent has been marketing a really prestigious block of apartments on the seafront for the last 18 months, only one sold according to nethouseprices. for £655K.

LMAO.

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really red baron? I will keep my eyes peeled

rainbow,

I ve seen lately how in portsmouth the trend is to buy up old pubs, knock them down and build flats. Theres one where its been knocked down flat, but for 2 months nothings been done to it... maybe they ve pulled out. Normally builders should have put the walls up by now. Just some anectodal evidence. But good news neitherless.

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Trev,

There are two developments just started close by to me, they finished demolishing the original buildings and have literally dumped a cabin sales office in the rubble, with prices available. They havent started to did a hole yet.

Now, I remember 3 years ago, walking onto a new development and some prima-donna salesperson said she would take our particulars and discuss us with the developer but couldn't possibly give us a price offhand, (even though two of the houses were already occupied). How times change, eh.

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  • 442 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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