Have Not Seen So Many Properties <£100k In Quite Some Time

[Jonnybegood]

This week I have spent some time reading a few of the property papers from around South Wales and also done a bit of online searching and then comparing to a few property mags I have from last year.

What stood out for me was the greater number of properties under £100k, when I looked back at a mag from November 2006 there were very few <£100k and if there were they needed some serious money spent on them.

Another observation were the plus £350k type properties, many of those priced up at over £600k are now down to under £500k since a year ago, worst hit here seem to be the new build properties be it private developer or big player i.e Persimmon , Wimpy.

There were however alot of property still holding up quite well and I say this because they seem to have the most STC, under offer and prices similar or more than mid 2007.

These properties were mainly good location semis and older build detached properties with good size gardens and floor space, big bay windows and original features.

I put my findings down to the following

< £100k properties going back 12mths would of been 15-20% higher and around 200% more than what they were 7 years ago, the prices here driven up by BTL and generally the fact they were the only affordable properties for many FTB wanting to buy.

> £350k properties are around 10% less with >£500k properties in many cases now 20% less, the reason I see here, many to frightened to move up to these properties due to uncertainty and taking on extra debt, many of these properties have gone up 100% in the last 7 years that could be a £180k or more rise in 7 years, somebody buying now that could be one hell of a fall and those who own these properties willing to slash the prices now having made so much over the past few years, 20% is only taking prices back 3-4 years.

Those properties holding up quite well are good family homes that tick most the boxes, priced at between £150k - 250k for most they could live there for ever and a day, not to big (upkeep) and not to small, i.e separate lounge and dining room , 3-4 good sized bedrooms , good sized bathrooms , kitchens.

These properties having looked through some of the property price websites having risen 80-100% in the last 8 years, or between £60k - £125k.

For many they would not be a first time purchase property and so I expect those looking for extra space would look to move up the ladder to one of these houses with some equity already in their own property, hence mortgage requirements would not be has high and easier to obtain.

Just my observations, was this similar to how previous corrections in the markets unfolded? the only difference I can see is that lower end has been saturated with BTL and nobody as yet can say for definite how this will affect things