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Realistbear

Bo E: More Than 40pc Of Uk House Sales Are Collapsing

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http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

More than 40pc of UK house sales are collapsing

By Jon Swaine
Last Updated: 1:35am BST 25/07/2008
Four in ten house sales are collapsing in some areas as buyers back out or fail to get a mortgage, the Bank of England has disclosed.
The new figure is yet another sign of the pain being endured by the housing market as the effects of the credit crunch work their way through.
In the monthly Agents' Summary of Business Conditions report, the Bank said: "In the market for established homes, more transactions were falling through, with some estate agents reporting a cancellation rate of up to 40 per cent recently. That was partly due to the unwillingness of many sellers to accept a lower offer."

Merv is getting a bit bold telling us this? Sheeple will be desperate to sell as the market collapses and their overheads increase. The market is about to shift up a gear--to the downside that is. This will force wannabe sellers and wannabe STRs who left it a year to late, to cut and run causing massive drops in the weeks and months ahead. Get what you can now as next year will only be worse.

Edited by Realistbear

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http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

More than 40pc of UK house sales are collapsing

By Jon Swaine
Last Updated: 1:35am BST 25/07/2008
Four in ten house sales are collapsing in some areas as buyers back out or fail to get a mortgage, the Bank of England has disclosed.
The new figure is yet another sign of the pain being endured by the housing market as the effects of the credit crunch work their way through.
In the monthly Agents' Summary of Business Conditions report, the Bank said: "In the market for established homes, more transactions were falling through, with some estate agents reporting a cancellation rate of up to 40 per cent recently. That was partly due to the unwillingness of many sellers to accept a lower offer."

Merv is getting a bit bold telling us this? Sheeple will be desperate to sell as the market collapses and their overheads increase. The market is about to shift up a gear--to the downside that is. This will force wannabe sellers and wannabe STRs who left it a year to late, to cut and run causing massive drops in the weeks and months ahead. Get what you can now as next year will only be worse.

RB, I can well believe this. Just looking at property bee for my area, there are loads of "SOLD STC -> AVAILABLE" entries, so have even done it several times "UNDER OFFER-> SOLD STC -> Available -> SOLD STC -> AVAILABLE" etc.

I while a go also made a post about EA descriptions describing properties as "unexpectedly re-available", at the time it might have been a bad survey, but now I suspect more are buyers getting very cold feet.

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RB, I can well believe this. Just looking at property bee for my area, there are loads of "SOLD STC -> AVAILABLE" entries, so have even done it several times "UNDER OFFER-> SOLD STC -> Available -> SOLD STC -> AVAILABLE" etc.

I while a go also made a post about EA descriptions describing properties as "unexpectedly re-available", at the time it might have been a bad survey, but now I suspect more are buyers getting very cold feet.

If 40% + transactions are failing it means that EAs are spending a lot of money advertising propertioes that don't sell. Given all the other bad news for the EA industry it is a wonder so many remain in business? I pass by EAs everyday in my region and most are still open--no one ever in there and their parking spaces empty apart from a Carrera 4 or Rangerover Vogue -but still open. They always seem to have a phone in their ear and are no doubt talking to their mates while trying to fake a business call. Sad really, I bet they will miss their Rangerovers and Carreras?

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If 40% + transactions are failing it means that EAs are spending a lot of money advertising propertioes that don't sell. Given all the other bad news for the EA industry it is a wonder so many remain in business? I pass by EAs everyday in my region and most are still open--no one ever in there and their parking spaces empty apart from a Carrera 4 or Rangerover Vogue -but still open. They always seem to have a phone in their ear and are no doubt talking to their mates while trying to fake a business call. Sad really, I bet they will miss their Rangerovers and Carreras?

Spin, spin, spin. Even in the boom 4 in 10 sales would cancel. Its all utter ******** but great for selling newspapers and you lot lap it up just like your 'sheeple'.

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Can you really shift up going down???

If you're driving downhill you can.

Anyway it's better than "falls to the downside" which I have seen in the mainstream media. What other kind of falls could there be?

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Spin, spin, spin. Even in the boom 4 in 10 sales would cancel. Its all utter ******** but great for selling newspapers and you lot lap it up just like your 'sheeple'.

Actually, the figures are up. It was more like 3 in 10 during the boom.

So, not a gigantic increase (not sure why the bank mentioned it), but it is significant. 30% increase in failed sales.

Edited by DementedTuna

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Spin, spin, spin. Even in the boom 4 in 10 sales would cancel. Its all utter ******** but great for selling newspapers and you lot lap it up just like your 'sheeple'.

But these are not "cancelations" or sheeple chnaging their minds. Its as the bank said--no munee!

Its different this time you see.

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Actually, the figures are up. It was more like 3 in 10 during the boom.

So, not a gigantic increase (not sure why the bank mentioned it), but it is significant. 30% increase in failed sales.

TFA states that estate agents are reporting "up to 40%" of house sales falling through. How the Torygraph turns this into "over 40%" I don't know, but RB in this case is guilty of merely repeating an inaccuracy rather than his usual meta-spin.

If 30% is typical then I suspect nothing has changed in this respect - except the change in sentiment that the reporting reflects.

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With property prices falling so fast I am not surprised by the pullouts, I'd say the figure is higher than 40%. It being like offered a share for £5 and when you come to pay for it its valued at £3 similar , would you still buy it , NO. You have to factor at least 35% drop in value from the present street value , not the asking price as these are too distorted by the EAs .

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That 30% increase ( if it is that) is on top of the fact that NOTHING is selling! In other words; of the paltry number of offers that are going through, half of them are collapsing.

This is the stuff that turns a fall into a rout. As the reality bites that sellers are back to square one the need to get a buyer starts to get desperate.

I see it around here. A foxtons estate agent actually described a seller as "desperate" and to make an offer!

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Spin, spin, spin. Even in the boom 4 in 10 sales would cancel. Its all utter ******** but great for selling newspapers and you lot lap it up just like your 'sheeple'.

The market was talked up by the media in the boom and it will be talked down by the media in the bust. Get used to it! :P

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That's 40% of virtually no sales anyway.Sold count on for sale signs in the Derwent Valley along the A6 from Matlock to Derby today whilst on the transpeak bus ,one sold out of sixty.Cataclysmic meltdown.

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That's 40% of virtually no sales anyway.Sold count on for sale signs in the Derwent Valley along the A6 from Matlock to Derby today whilst on the transpeak bus ,one sold out of sixty.Cataclysmic meltdown.

Just noticed the HBOS regional stats are out,not surprising the East midlands is down 7.2% Qon Q.Been predicting a meltdown shocker for the region all month.Can't seea thread for the stats,but presume one must be running somewhere,not up to speed just lately as stuck working.

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That's 40% of virtually no sales anyway.Sold count on for sale signs in the Derwent Valley along the A6 from Matlock to Derby today whilst on the transpeak bus ,one sold out of sixty.Cataclysmic meltdown.

So if I was Stuart Lawz I would be saying that fewer sales are falling through than ever before.

This is good news.

40% of 21k is much less than 30% of 100k.

Buyers are more committed than ever. :lol:

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I can well believe it. There's one particular one down from the station where I live, and it's just an end of terrace with no parking cornering a terraced cul-de-sac with masses of cars (a proper parking nightmare street). Double yellow lines on the other side of the corner.

I forget what it's selling for, but it's not moving from the SSTC status and it's been like it for 4-5 months. Methinks they're buyer's lost the chain and they're holding out in case they can get another seller and redo the chain. Pure fantasy in my own mind as I walk home though, not a shred of evidence. :lol:

TFH

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This came out 2 days ago

http://www.bankofengland.co.uk/publication...mmary/index.htm

Housing market

Housing demand continued to contract at a rapid pace. Many

contacts judged that the level of activity was currently more

depressed than during the early 1990s. The number of

repossessions remained low, however. In the market for

established homes more transactions were falling through,

with some estate agents reporting a cancellation rate of up to

40% recently. That was partly due to the unwillingness of

many sellers to accept a lower offer. Also, increasing numbers

of potential buyers had either had mortgage offers withdrawn

or had pulled out of transactions due to fears of capital losses.

Both of these factors were exacerbated by the lengthening

period of time between the acceptance of an offer and the

purchase being completed, due to a rising number of

transactions breaking down elsewhere in the housing chain.

Confidence of estate agents continued to decline and more

were either making staff redundant and/or closing offices.

There were a number of reports of estate agencies refusing to

accept new instructions, particularly if the seller was unwilling

to negotiate on price, and some had raised their fees to reflect

the increased cost of finding buyers.

In the market for new housing, the number of starts continued

to dwindle. With rising amounts of unsold stock on their

books, some house builders were attracting buyers by paying

the deposit themselves — having first obtained the agreement

of the mortgage lender — or by offering shared equity

schemes. Prices of new houses were generally falling faster

than in the market for established homes. In some towns and

cities, prices of newly built apartments had fallen by over 25%

in the past year, reflecting the degree of excess supply.

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  • 399 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% +
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      • Even
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      • up 5%



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