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House Builders Still Pushing Up The Prices

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Have been working on new homes sites over the past few months (temping) sales going well and prices up 2 - 3 % over the past month on all plots. I was expecting visitor levels to be down however this weekend a number of units sold. I am a bear and can not believe how youngsters just get excited about the new kitchen they can choose and have no concept of the bigger picture. I can see no slow down on the new homes sites in Essex/Herts at the moment. It is also shocking how the sales staff have little or no grasp on the housing market in general. Sales Managers a bit more with it but only just, they seem a bit more twitchy. With the wrapping up of mortgage advisors/solicitors all under the same umbrella the housebuilders stand a better chance of wrapping the deal up and getting it through. Usual deal is price (over inflated) less 5% deposit and stamp duty paid by homebuilder this gets them through.

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Have been working on new homes sites over the past few months (temping) sales going well and prices up 2 - 3 % over the past month on all plots. I was expecting visitor levels to be down however this weekend a number of units sold. I am a bear and can not believe how youngsters just get excited about the new kitchen they can choose and have no concept of the bigger picture. I can see no slow down on the new homes sites in Essex/Herts at the moment. It is also shocking how the sales staff have little or no grasp on the housing market in general. Sales Managers a bit more with it but only just, they seem a bit more twitchy. With the wrapping up of mortgage advisors/solicitors all under the same umbrella the housebuilders stand a better chance of wrapping the deal up and getting it through. Usual deal is price (over inflated) less 5% deposit and stamp duty paid by homebuilder this gets them through.

Typo? You claim to be a "Neither?"

The credit crunch won't affect the UK because in a miracle economy debt is illusion whereas the price of a home is real.

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Have been working on new homes sites over the past few months (temping) sales going well and prices up 2 - 3 % over the past month on all plots. I was expecting visitor levels to be down however this weekend a number of units sold. I am a bear and can not believe how youngsters just get excited about the new kitchen they can choose and have no concept of the bigger picture. I can see no slow down on the new homes sites in Essex/Herts at the moment. It is also shocking how the sales staff have little or no grasp on the housing market in general. Sales Managers a bit more with it but only just, they seem a bit more twitchy. With the wrapping up of mortgage advisors/solicitors all under the same umbrella the housebuilders stand a better chance of wrapping the deal up and getting it through. Usual deal is price (over inflated) less 5% deposit and stamp duty paid by homebuilder this gets them through.

Bluff!

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:P

Typo? You claim to be a "Neither?"

The credit crunch won't affect the UK because in a miracle economy debt is illusion whereas the price of a home is real.

Good Point - Will update my profile. Your a bit picky today.

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I was expecting visitor levels to be down however this weekend a number of units sold. I am a bear and can not believe how youngsters just get excited about the new kitchen they can choose and have no concept of the bigger picture.

Is it any wonder that the kind of person who is taken in by a 'luxury flat' and gets excited about a 'designer' kitchen that will have fallen to pieces within 4 years is yet to catch on?!

(I'm not doubting your story I can well believe they are out there)

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Is it any wonder that the kind of person who is taken in by a 'luxury flat' and gets excited about a 'designer' kitchen that will have fallen to pieces within 4 years is yet to catch on?!

(I'm not doubting your story I can well believe they are out there)

I have no reason to post false claims. The real shocker is that one couple fetched parents to give the seal of approval, Mum and Dad thought it was great and watched them sign up for a 260K box with poor views of other boxes they went off to the pub to celebrate.

I also could not understand how they did not notice that so many re sales of properties built earlier in development have gone up for sale and To Let signs galore around the site. Really Shocking - parents should be shot.

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THIS is a dream - not reality

The average UK homebuilder is struggling,

as a perusal of the charts will show:

I have been in Essex and Herts temping and can only report my findings. I am surprised and frustrated as my own personal view is we are in for a crash.

I remember the last one well and think this will be as bad.

I have hidden my negative feelings at work as you have to. My post is not to wind up anyone only just tell it as it is.

What is interesting is that usually you only get a release of half a dozen or so plots at once however there is a shift and instructions from Head Office is call through to Sales Managers for prices if a non realesed plot has interest and release will be given. This is very very unusal as plots ready much later in buuild programme are not usually sold too early. So a shift in thinking is going on behind the scenes and maybe they just dont want girls/guys on site to know too much.

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I have been in Essex and Herts temping and can only report my findings. I am surprised and frustrated as my own personal view is we are in for a crash.

I remember the last one well and think this will be as bad.

I have hidden my negative feelings at work as you have to. My post is not to wind up anyone only just tell it as it is.

What is interesting is that usually you only get a release of half a dozen or so plots at once however there is a shift and instructions from Head Office is call through to Sales Managers for prices if a non realesed plot has interest and release will be given. This is very very unusal as plots ready much later in buuild programme are not usually sold too early. So a shift in thinking is going on behind the scenes and maybe they just dont want girls/guys on site to know too much.

Interesting, thanks nest. Guys, stop posting your paranoia here. We are just getting a view point.

You mention young buyers. Has the BTL demand dropped any in the past week?

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Is it any wonder that the kind of person who is taken in by a 'luxury flat' and gets excited about a 'designer' kitchen that will have fallen to pieces within 4 years is yet to catch on?!

Young professionals again. Young (immature) professional (works for money)

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Have been working on new homes sites over the past few months (temping) sales going well and prices up 2 - 3 % over the past month on all plots. I was expecting visitor levels to be down however this weekend a number of units sold. I am a bear and can not believe how youngsters just get excited about the new kitchen they can choose and have no concept of the bigger picture. I can see no slow down on the new homes sites in Essex/Herts at the moment. It is also shocking how the sales staff have little or no grasp on the housing market in general. Sales Managers a bit more with it but only just, they seem a bit more twitchy. With the wrapping up of mortgage advisors/solicitors all under the same umbrella the housebuilders stand a better chance of wrapping the deal up and getting it through. Usual deal is price (over inflated) less 5% deposit and stamp duty paid by homebuilder this gets them through.

Driving through the country I am seeing all sort of discounts being offered and also noting that alot of places bought new last year have dropped in price and one on your doorstep in Colchester, 1 year old appartments (6 of them I believe in the same complex) dropped from 245K to 145K that is a huge drop something that I would expect to happen in the whop whops but not commuting distance to London. In 2003 you literrally had to queue overnight to sign your name for a new build round the country with absolutely no add-ons nor discount, Oh times have changed :lol::lol::lol::lol:

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I suspect this time round the builders will be forced to sell up at a profit, any profit. They'll do a 'Fort Myers' rather than gently ease themselves out of their positions. According to smartnewhomes prices of new builds have hardly budged in a year, in fact they fell in their latest survey.

The average price of a new home in the UK in June 2007 was £260,073

Down 0.3% in the last month (compared with £260,832 in May 2007)

Up 1.7% in the last three months (compared with £255,695 in March 2007)

Up 0.6% in the last year (compared with £258,581 in June 2006)

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Interesting, thanks nest. Guys, stop posting your paranoia here. We are just getting a view point.

You mention young buyers. Has the BTL demand dropped any in the past week?

Over the past 6 weeks I would say that BTl enquires has dropped a great deal. It is owner/oocupiers that are buying. Of course deals are being done, currently the most used tool for the builders is the Part Exchange route, yes they give 100% of the asking price to get plots shiffted. Many young buyers have flats that they want to move up from and if they are not selling they will PX it and get their hands on a new home. They dont seem to click that if their flat is not selling then perhaps the market is cooling, they just get shot of it by px and pay an over inflated price on the new one (much as we do with new cars). The scary thing is the prices they pay and the mortgages they take on.

I was working in Herts on a site selling apartments and yes this was a far quieter site as so much competition in this market and demand for 220k plus apartments drying up.

My own view is that a number of these recent reservations will fall apart as lenders look far closer at the deals being offered. The only thing is the house builders will package things as best they can via their mortgage guys to get it through.

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The only thing is the house builders will package things as best they can via their mortgage guys to get it through.

......sounds like the Wall Street hedge fund mangers mixing their poisoned potions...... :P:lol::lol:

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Over the past 6 weeks I would say that BTl enquires has dropped a great deal. It is owner/oocupiers that are buying. Of course deals are being done, currently the most used tool for the builders is the Part Exchange route, yes they give 100% of the asking price to get plots shiffted. Many young buyers have flats that they want to move up from and if they are not selling they will PX it and get their hands on a new home. They dont seem to click that if their flat is not selling then perhaps the market is cooling, they just get shot of it by px and pay an over inflated price on the new one (much as we do with new cars). The scary thing is the prices they pay and the mortgages they take on.

I was working in Herts on a site selling apartments and yes this was a far quieter site as so much competition in this market and demand for 220k plus apartments drying up.

My own view is that a number of these recent reservations will fall apart as lenders look far closer at the deals being offered. The only thing is the house builders will package things as best they can via their mortgage guys to get it through.

This is a very simple scam; the developers are selling new builds at a premium so they can sell the PX at a loss

The builder maintains the impression of high sale prices on the development by applying a big discount retrospectively to the PX property. The buyer is none the wiser because having been paid well over the odds for their PX (confirmend by the fact that it has not sold on open market), the high price of the new build seems right. No wonder second-hand newbuilds are imposible to sell!!!

I would say this is sick; but then if people are stupid enough to be drawn in by this kind of scam and a shiny new kitchen then they deserve to get stung

Nest, just out of interest, which town(s) in Herts are you refering to?

Edited by Sonic the Hedge Fund

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Young professionals again. Young (immature) professional (works for money)

Charles Church is a perfect example of this 'dream'. In the show suite they didn't even paint behind the curtains nor filled in the cracks around the door frames. I dread to think what the non show suites would have been like quality wise.

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This is a very simple scam; the developers are selling new builds at a premium so they can sell the PX at a loss

The builder maintains the impression of high sale prices on the development by applying a big discount retrospectively to the PX property. The buyer is none the wiser because having been paid well over the odds for their PX (confirmend by the fact that it has not sold on open market), the high price of the new build seems right. No wonder second-hand newbuilds are imposible to sell!!!

I would say this is sick; but then if people are stupid enough to be drawn in by this kind of scam and a shiny new kitchen then they deserve to get stung

Nest, just out of interest, which town(s) in Herts are you refering to?

If you have ever part exchanged your car at a garage you have also been stung!!!

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