Monday, July 17, 2006

Not where I live!

Asking prices jump 2.9%

Well, here's a surprise! Not round here, certainly, and one wonders whether this is a surge of optimism on the part of vendors that will not be matched by buyers. What's happening in your neck of the woods??

Posted by uncle tom @ 11:48 AM (3040 views)
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11 thoughts on “Not where I live!

  • devil's advocate says:

    Sold my house in bexley, kent (london borders) for £145,000 in Oct 2003 it must be worth about £190,000 now. It sold for £172k early 2005 and I two friends who have sold recently all off them got more than the asking price. House prices in s.e. london are booming.

    I am looking to buy in Greenwich and noticed a number of properties stay on the market for 6-12 mnths then disapeear. A lot of these re appeared in april-may for 35-40 more and all but one have sold.

    Must admit I am starting to reconsider getting back on the ladder and admitting that ive made a bad mistake. Id only for fear off the market getting away and not being able to buy.

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  • Can’t comment on the south-east but prices continue to fall in the Welsh Borders. Many of the expensive houses just aren’t selling despite being told personally by estate agents that houses are ‘flying off the shelves’. Many sellers are remaining stubborn, so it will take a long while for the market to bottom out and I’m prepared to wait. The number of sub £100,000 has doubled since last year (I’ve been watching for two years now) and I’m constantly seeing price reductions, especially in the £200,000+ price region. Another thing I’ve been surprised by is the number of houses which are going under offer and coming off again repeatedly – one £299,000 8 bedroom house has been on and off 4 times!

    Essentially, whilst renting is so much cheaper than an interest only mortgage on a similar property I’m going to sit tight. To do anything else would just be a waste of my money which is topping up my savings. We have seen the beginning of the end of cheap credit in Japan and that will feed through. DA, buy if you must but I really don’t want to be saying ‘we told you so’ in a couple of years.

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  • I’d say houses in the North East are starting to fall,. Like uncle chris it seems to be in the £200K+ area that are falling the most.

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  • Retiredbanker says:

    About 4/5 years back my daughter paid £60k for a btl investment property in the centre of a university town in the
    East Midlands.
    She and her husband have since spent a considerable amount of time and money putting this property into good
    condition, and after experiencing some problems with tenants, put the house up for sale just over a year ago.
    On the advice of the estate agent the initial asking price was£120k, but in the absence of any interest from buyers,
    and several changes of estate agent, the selling price has been reduced in stages to £103k. Still no interest!
    A quick look on the “rightmove” site shows that the market in that locality is awash with properties for sale in the
    £80/130k range, in spite of the potential for buying and then renting to students.
    She now intends to try and sell her property at auction, and it seems that she will be lucky to achieve more than £90k. This is in a prosperous area with full employment!

    After deducting improvement costs, legal fees, etc., it seems that the anticipated “large easy profit” will not be
    forthcoming. She should in fact still be in pocket as due to her circumstances she will not be liable for Capital
    Gains tax; but I cannot avoid the suspicion that many btl’s are going to get their fingers burned.

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  • Agree with kpjcomp, properties are sticking on the market, EA’s are advertising ‘new prices’ and as I live in the South of Scotland I am seeing ‘fixed prices’ instead of ‘offers over’, which is a definite sign of change. I do think that good quality properties are still selling in a normal timeframe (albeit at 2004-early 2005 prices), but the low quality properties are completely dead in the water.

    Bingo out.

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  • In the south west here, asking prices have not increased in my area, but or do they seem to be coming down either. There is no way asking prices have gone up 10% in the last 12 months……static at best.

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  • front page news in the local paper here is a report from the local EA saying that properties (already at an average 319,000) are set to rocket by 2010 so people should get in now before it’s too late as properties are already flying off the shelves.

    Can’t help thinking that if they’re already so bldy busy where they find the time to write this stuff?

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  • bidin'matime says:

    DA – don’t do it! Yes you know with the benefit of hindsight that you could have made more by hanging on, but look back at the reasons why you sold then – because house prices were already too high.

    You can’t recover the gain you could have made, but what would be worse – to see prices creep a bit higher still or to buy now and lose it all over again if and when prices crash to the level you had good reason to believe they would, even back then.

    I analysed BTL very closely about 5 years ago and decided it was not viable in the longer term with prices as they were, even then. Soon after, I was itching to sell and rent, but the family situation didn’t lend itself to this. Last year the conditions suited and we sold. I count myself lucky that we profited from the further expansion of the bubble, but I have to keep reminding myself that prices are likely to fall below 2001 levels. It takes faith in basic economics to keep focused and it just doesn’t fit with all the hype you read, but hey – that’s what happens in bubbles…!

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  • Bubbles. . . . says:

    Patience trade defecit Japan rising intrest unemployment up Brown is worried…Bubble will burst….eventually hopefully soon!!!

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  • In answer to your question Tom my part of Somerset looks very quite after a busy Spring. During Spring new instructions that looked “relatively” well priced sold. I did notice a good number of £400K properties sell. £400K properties were just not selling but I noticed one EA had sold all their properties above £400K. This did not seem to provide any upwared pressure on prices. Another group of properties that were selling well were typical BTL and bargain basement FTB properties. Early June and the market has fallen into a lull, this is backed up by my contacts in the industry. I can best describe it as stagnation. Moving into June I’m starting to see genuine price reductions again but and it’s a BIG BUT I’m seeing some highly speculative pricing by one or two EA’s. Overall the market is cooling rapidly.
    To be honest all the time I’ve posted on here my neck of the woods seems to be in complete contrast to what alledgedly is going on in London.

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  • Oh and I forget to add something quite important.
    Due to the rapidity of properties sold and an initial shortage of new instructions some EA’s are over-valuing props to get the instruction. I have childhood friend who is an EA stated, and I will paraphrase, “we can’t get new business as those tw*ts at ******* are telling clients they will get figures that in reality they wont. This will potentially explain data from rightmove. As I stated at best the market it stagnant in Somerset.

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