Proof Of Continuing Denial

[OMG]

We went to look at this house a year ago. Whilst it does have an amazing view and it is very nice around these parts it's plainly > £100k over-priced. When we viewed it I said it was £50K over to the EA and she agreed; I do wonder why they've allowed it to stay on their books, though.

http://www.rightmove.co.uk/viewdetails-15270157.rsp

Any more?

Edited to add: If you've not got Property-bee then be aware they've not dropped the price one bean in that year

Edited September 18, 2008 by OMG

[Alfie Moon]

Will the plans to build x thousands of new houses in/around Malvern, as part of the South Worcestershire Development Plan, have any impact on the view this house has?

With, or without newbuilds appearing in the next few years, yes, this house is stupidly over-priced. The Estate Agents in and around Worcester and Malvern are a real mixed bag in terms of being realistic about the falling market and those who act as if we are still in the midst of a fully booming market (and if gently challenged about this - seem convinced that the Government is about to come to the rescue any minute now and that prices will continue ever upwards).

Many vendors that I have had contact with in this area of the country seem to acknowledge that the market is in a dire state but are anxious about being the first to make the move to cut their asking price by a reasonably large chunk.

Whilst some (the ones that are selling) are going for 15% to 25% below current asking prices the overall state of the market in Worcester/Malvern seems to be one of ongoing stalemate. This has been going on for most of the year and I suspect that post Xmas/New Year may be the time that capitulation by vendors and Estate Agents begins to come into effect. At the moment, during this stagnation period, there seems to be a mixture of denial, catious acceptance, fear, depression and some anger.

Why Estate Agents arn't going gun fully blazing towards vendors insisting that asking prices are drastically reduced is beyond me. Many of the Estate Agents seem paralysed (if they are not in denial) and just don't know what to do. This inaction is in effect committing business suicide. Again, after Xmas and New Year I suspect the number of Estate Agents going out of business will pick up in pace. Many have been just holding on this year hoping that some kind of Government miricle would happen but as April next year gets closer and the end of the economic year looms - it will, I suspect become fairly ugly.

[SpiderMug]

Hello! I'm a Malvernite (adopted, I didn't grow up here so I can actually drive )

I'm tempted to ask for a viewing foor that house and then tell the agent it's way overpriced (Not that I could afford it even if it halved in value, but I have put on a similar good show when looking at another property recently).

[0q0]

Although I've seen an increase in places being reduced, the amounts are usually small.

It's now ludicrous to look through the property papers and see even new listings at near peak prices with the agent's blurb "Absolute bargain, view now to avoid disappointment!"

When you've still got studio flats at £105K (Letchworth) and chav-like people looking in windows as I heard yesterday in Welwyn "Look, it's just £250,000"

then the battle still has some way to go.

An acquaintance FTB said to me "I've heard property prices should drop by 10% soon, I'm hoping so, then I'll buy!"

- this illustrates that the huge prices currently have come to be accepted by all too many.

How prices can possibly stay at these silly levels given all the economic disaster is beyond me, but mostly they are.

Things are probably at the early stages there, even with things unwinding as they are.

I don't think Joe Public really believes it yet.

[ʎqɐqɹǝʞɐɥs]

We went to look at this house a year ago. Whilst it does have an amazing view and it is very nice around these parts it's plainly > £100k over-priced. When we viewed it I said it was £50K over to the EA and she agreed; I do wonder why they've allowed it to stay on their books, though.

http://www.rightmove.co.uk/viewdetails-15270157.rsp

Any more?

Edited to add: If you've not got Property-bee then be aware they've not dropped the price one bean in that year

Massive over valuation. That shouldn't be 1 bean over £200k, probably even less.

[quinnbear]

When you've still got studio flats at £105K (Letchworth) and chav-like people looking in windows as I heard yesterday in Welwyn "Look, it's just £250,000"

then the battle still has some way to go.

An acquaintance FTB said to me "I've heard property prices should drop by 10% soon, I'm hoping so, then I'll buy!"

- this illustrates that the huge prices currently have come to be accepted by all too many.

It is alarming when houses that should be around £100-£150K are priced and at 'just' £250K (yep, that's a quarter of a million pounds in old money) and the price is considered reasonable by some people. I guess in comparison to prices that were £300-400K then maybe it is reasonable, but in term of average earnings and all the other factors it is just nonsense.

It is also sad that the 10% drop we have had still leaves us with silly prices. I am usually cautious when predicting to colleagues how far it will fall. I give a conservative estimate of 30% (just so that I don't alarm people, but I secretly think 40-50% may be achievable).

Q

[OMG]

Will the plans to build x thousands of new houses in/around Malvern, as part of the South Worcestershire Development Plan, have any impact on the view this house has?

I've no idea but thanks for the heads-up. I'd be very surprised though as it's very near little Malvern if anything I though most of the building was earmarked to the North, up towards Leigh Sinton. I know there was a huge plot cleared ready for building opposite the School that oddly enough seems to have stopped dead.

Will investigate further, though.

[SpiderMug]

I've no idea but thanks for the heads-up. I'd be very surprised though as it's very near little Malvern if anything I though most of the building was earmarked to the North, up towards Leigh Sinton. I know there was a huge plot cleared ready for building opposite the School that oddly enough seems to have stopped dead.

Will investigate further, though.

Here you go, surprised you missed it, it's BIG news for little 'ol Malvern.

http://www.worcesternews.co.uk/news/363217..._600_homes_plan

http://archive.malverngazette.co.uk/2008/6/6/528113.html

[OMG]

Here you go, surprised you missed it, it's BIG news for little 'ol Malvern.

http://www.worcesternews.co.uk/news/363217..._600_homes_plan

http://archive.malverngazette.co.uk/2008/6/6/528113.html

Oh, yes, that

[bear_or_bull]

I think this is a real problem. Either indicative that there's still a looong way down, or the central banks will pull off the impossible and it'll all carry on.

Over the last few days I've heard a lot of people saying " now's the time to buy" and start approaching mortgage companies. Amazingly, because they can meet the deposits, they can get loans. These are all people in Dubai mind. In Australia things are still ludicrously bullish. Article in the paper today said "house prices to soar again", the very same day all the central banks had to pull together to stop the complete collapse of modern finance.

Amazingly:

- High house prices are still entrenched as a good thing

- People don't realise how high they are (Just 250k) and don't appreciate how they'll pay more for property than any other generation

- People don't realise that they will have to trade up, and that the rungs of the ladder are far apart in a low inflation world

- People judge affordability solely by first year cash flow (i.e. can they afford the payments)

- People still think they'll get richer and richer through property

In short, people are stupid.

ALL of this has to change. But will it. I think, in the absence of a financial disaster (which clearly we may be in the middle of), the hoi polloi are quite willing to sleepwalk into their own financial servitude. Maybe they deserve it?