Monday, December 11, 2006

Tides turning or another false dawn?!?

Asking prices slashed as house buyers feel pinch

Homeowners selling property are cutting their asking prices in the run-up to Christmas in what could be the first sign that sellers are responding to growing pressure on buyers' finances from rising interest rates and fuel bills, two reports show today.

Posted by tyrellcorporation @ 08:33 AM (549 views)
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7 thoughts on “Tides turning or another false dawn?!?

  • tyrellcorporation says:

    ‘The number of sales falling through rose to one in 11 from one in 12 in October. “This could be due to the rise in interest rates to 5 per cent at the beginning of November,” it said. “Buyers who were already stretching their budgets in order to buy their desired properties are likely to have had to pull out of sales due to the increased mortgage repayments.”

    Absolutely staggering that people are loading themselves up to their eyes in debt with the merest slither of room for error. Can you imagine borrowing so tightly that a 20 quid increase over the period of a month makes things impossible to sustain!

    Bloody barmy if you ask me, people have totally lost the plot.

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  • Yes TC people are loosing the plot, everybody wants to be David Beckham and or Posh Spice.

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  • Sorry to be a party pooper but I think this is a False Dawn:

    1. The figures are not seasonally adjusted.

    2. There is nothing which is FORCING the Buy-To-Let Brigade to sell their investments – in large enough quantities to effect the market.

    3. There is nothing FORCING Joe Average to sell his owner-occupied home – in large enough quantities to effect the market.

    Until people (investors and owner-occupiers) are FORCED to put their building on the market and FORCED to accept a lower price then they otherwise would have done, there will not be a House Price Crash. What is so dire in the UK’s economy to force people to sell. Nothing yet – but there are lots of risks which may / may not occur.

    I like the idea of the West Country suffering a 3.3% ASKING price drop.

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  • tyrellcorporation says:

    ‘I like the idea of the West Country suffering a 3.3% ASKING price drop.’

    …me too!

    Although prices are so out of kilter down here I’m thinking of moving to ‘bargain basement’ Oxfordshire in 12 months time!

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  • Those putting their properties on the market now or dropping prices are those who missed the market in September – hence the lower asking prices. Look at any non-adjusted data and you’ll see lower prices and sales volumes over December and January. Arguably a good time to buy as there may be bargains to be found. Lousy time to sell though.

    This probably doesn’t apply to London as it looks like the buying spree is bonus fuelled.

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  • The economic miracle built on debt and HPI is almost at an end. The debt mountain is at a peak and interest rates do not look like falling. THe US economy based on debt and HPI is also faltering.
    In the Uk, pensions and public finances are in trouble and taxes are rising. As soon as people appreciate (and feel in there pockets) that the economy is pure spin based on debt not productivity then IMHO house prices will start to decline.
    The only possible way out could be inflation which will evaporate the debt. Internationally this would be an economic disaster and put interest rates under further pressure.

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  • I garee there is nothing forcing BTL to sell, but there does seem to be a lot of property come onto the market in Devon just recently considering that it’s December.

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