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gruffydd

The Crash Has Arrived In West Wales - Offers Coming In At 10-15% Below Asking Prices Already

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I have just enjoyed a great afternoon - speaking to all the main EAs in the West Wales town whilst my car was being fixed. I once worked as an EA in this very same town - many years ago.

All the Estate Agents including John Francis and the other big hitters(6) other than one (his figure was around 8% below) told me that asking prices were coming in below asking prices tot he tune of 10-15%.

One said that he was seeing the beginning of a really serious housing crash (his words not mine) and said 15% in itself was a crash from where he was standing. He said asking prices were ridiculous for some properties, and that people had gotten too used to using their houses as CASH MACHINES. He told me not to offer above 15% down (not on your nelly! I can afford to wait :lol: ).

Repos were about to soar was the view of another (one of the biggest local mortgage lenders).

One EA - a lady - said she had never known such a dead market since the last crash - she spoke really loudly - a couple of chav types turned round and stared at that point. She just didn't care anymore. This is unheard of in the world of Estate Agency!

THIS IS A CRASH! - I remember the last one - AND ABOUT BLOODY TIME TOO! All the EAs were being brutally honest - incredible!

G

Edited by gruffydd

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Seems to me that EA's are slowly taking the Red pill and waking up in the Matrix!

It's in their interests to get the market moving and get the crash out of the way as quickly as possible. A 30% drop in prices, as they sneak a 43% rise in their fee and they'll be where they were before (if they sell the same number of houses per month). The bigger agencies in Ireland have already increased their %age fee.

I was a bit disappointed by the book "Freakonomics", but there is a nice chapter on why estate agents' own houses are typically on the market for longer and typically sell for more than their clients' houses. There is a diluted incentive for them to sell at a higher price and a small penalty for selling low (difference between selling for £200 000 and £150 000 will be around £700 to the agency - but 50 grand to the seller).

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I have just enjoyed a great afternoon - speaking to all the main EAs in the West Wales town whilst my car was being fixed. I once worked as an EA in this very same town - many years ago.

All the Estate Agents including John Francis and the other big hitters(6) other than one (his figure was around 8% below) told me that asking prices were coming in below asking prices tot he tune of 10-15%.

One said that he was seeing the beginning of a really serious housing crash (his words not mine) and said 15% in itself was a crash from where he was standing. He said asking prices were ridiculous for some properties, and that people had gotten too used to using their houses as CASH MACHINES. He told me not to offer above 15% down (not on your nelly! I can afford to wait :lol: ).

Repos were about to soar was the view of another (one of the biggest local mortgage lenders).

One EA - a lady - said she had never known such a dead market since the last crash - she spoke really loudly - a couple of chav types turned round and stared at that point. She just didn't care anymore. This is unheard of in the world of Estate Agency!

THIS IS A CRASH! - I remember the last one - AND ABOUT BLOODY TIME TOO! All the EAs were being brutally honest - incredible!

G

offers have been coming in 10-5% below since 2004 (well they have in the midlands the market i have been keeping a very close view off). Just Compare the home.co.uk sold price index to the average asking price index and it will give you an idea what the spread is, and how much you should be offering (in bristol?).. When the crash comes i expect the gap to widen to 20->30% before we see larger numbers of asking prices fall...

http://www.home.co.uk/guides/house_prices_...istol&all=1

Average selling price : £217,057

http://www.home.co.uk/guides/house_prices....ocation=bristol

average asking price : £247,235

Edited by moosetea

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asking prices have been coming in 10-5% below since 2004. Just Compare a sold price index to an asking price indexe and it will give you an idea what the spread is:

http://www.houseprices.uk.net/graphs/

Is it time to start differentiating "London" and "the rest of the country"?

'Cause up to now almost a quarter of homes sold in London were on sealed bids.

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Is it time to start differentiating "London" and "the rest of the country"?

'Cause up to now almost a quarter of homes sold in London were on sealed bids.

Your right London is tighter as its a more efficent market? sold prices are very

close to asking prices (f13k above the asking price)

http://www.home.co.uk/guides/house_prices....location=london

Median Flat asking price : £299,950

http://www.home.co.uk/guides/house_prices_...ondon&all=1

Median selling price : £313,395

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Guest Popalot
Is it time to start differentiating "London" and "the rest of the country"?

'Cause up to now almost a quarter of homes sold in London were on sealed bids.

So we are led to believe by the VIs. I live in oligarch territory (in a very small flat I must add) and there are houses on sale for weeks around here since mid summer. They just sit there. Even megalomillionaires don't buy in a falling or precarious market. Those who have wanted to come to London now have a foothold, and I doubt there will be a continued influx, things are getting too uncertain. the only ones left to come have bought the hyperexpensive Candy flats in Knightsbridge anyway.

City folk are not buying gazillion pund houses on the promise of future bonuses any more...believe me.

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offers have been coming in 10-5% below since 2004 (well they have in the midlands the market i have been keeping a very close view off). Just Compare the home.co.uk sold price index to the average asking price index and it will give you an idea what the spread is, and how much you should be offering (in bristol?).. When the crash comes i expect the gap to widen to 20->30% before we see larger numbers of asking prices fall...

http://www.home.co.uk/guides/house_prices_...istol&all=1

Average selling price : £217,057

http://www.home.co.uk/guides/house_prices....ocation=bristol

average asking price : £247,235

Erm.????? 2 different data sources:

Note: The sold house prices for Bristol were calculated by averaging over all properties sold, as recorded by the Land Registry, within 6 miles of the centre of Bristol - trend lines may be erratic*

Note: The house prices for Bristol were calculated by sampling over all properties for sale in the Home.co.uk property search within 6 miles of the centre of Bristol

Edited by gruffydd

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