Saturday, July 21, 2007

Contagion from the west

Wales sees 2.8% fall in house prices

US, Ireland and now Wales... "across Wales house prices saw the biggest fall in the UK in the last quarter, according to Halifax bank."

Posted by confused76 @ 11:28 PM (648 views)
Please complete the required fields.



16 thoughts on “Contagion from the west

  • Looks like builders are still pushing prices up artificially:
    -“The new stuff being sold by developers would probably have an effect on any statistics. The second-hand market isn’t selling as quickly”.
    -“A number of builders are pushing up their prices. People are prepared to pay slightly over the odds.”
    -“They’re planning to make a little bit on them on the second-hand market but are selling for about what they paid.”

    No attribrution of the drop in prices to Interest rates (this is a pure VI article – no balance):
    -“The big increases were this time last year. I think it’s slowed down a bit,”
    -“The first-time buyer market has been going very well. The problem is, first-time buyers are still struggling.”

    Reply
    Please complete the required fields.



  • Certainly no falls in this part of North Wales yet!!

    Reply
    Please complete the required fields.



  • uncle chris says:

    In my part of north-east Wales and Shropshire border, there are hundreds (and I mean hundreds) of expensive (£300,000+) new-builds and barn conversions that are not selling. Houses and flats continue to pop up all over the place in towns like Wrexham, with more on the way, and yet the market for anything over £150,000 seems to have slowed right down. In my opinion, prices for large detached house have come down significantly more than the 2.8% mentioned (not that the EAs will admit that) – I’ve noted £50,000 reductions on some houses over the past year and they are still not selling. I’ve also noted a number of houses that have been ‘under offer’ and then back on the market many times. The crash has started here at the top end of the market, but I’m not sure if most people realise it.

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Most of Wales fell in the first quarter of 2007. Annual stats still hide the new quarterly falls. I bet they are in much worse state right now. See the following link: http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/regions/html/region4.stm which is now linked from the HPC homepage.

    Reply
    Please complete the required fields.



  • speculatorone says:

    uncle chris…. This is excatly what is happening in my area East Northamptonshire. However the agents are still putting new properties on the market at stupid prices.

    Example, in my village there are two cottages, newly built and identical. One was for sale for 1.5 years @ £315K; it was redused to £289K ONO and sold 6 months later. The neighbour has just put their’s on the market at £325K.

    I have been looking at the same properties for over two years, you would think something would have giveway by now?

    Reply
    Please complete the required fields.



  • The problem with new builds and “off plan” is that the initial asking prices are not always included in the asking price stats in websites such as Rightmove. The only new builds that make it there are the ones that the developer could not sell directly – and therefore show the “lower” asking price of the development. this therefore means that the real drops in asking price (and the asking price peaks to which we have been subjected) are not reflected in the stats.

    Reply
    Please complete the required fields.



  • planning4acrash says:

    These quarterly falls will start to look big if they grow or even if they are sustained over a whole year. Just times them by four and you get the picture!

    Reply
    Please complete the required fields.



  • The most important think is that once you impress in people minds that prices cannot go up, then asking prices are automatically capped at the level of your neighbours, i.e. if you want to sell – of course.
    That breaks the spiral of soaring prices and then you have attrition when houses sit on the market for months on end.
    I am waiting that to start in London, but I am afraid it will take a while. But I am in no rush

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Prices were already falling in parts of London in the first quarter of 2007. See link below, this BBC website is now linked to the home page: http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/counties/html/county37.stm

    Harrow -2.8%
    Redbridge -0.7%
    Sutton -0.6
    Bexley -0.4

    Reply
    Please complete the required fields.



  • UNCLE CHRIS
    You comment about I’ve also noted a number of houses that have been ‘under offer’ and then back on the market many times
    Is interesting I have noted this too in cheshire, however a friend of mine who is an estate agent said this is purely a trick agents employ to panic buyers into making a move or offer on a place they might have been watching.. So take it with a pinch of alt the property market is dead and is starting to dropin some areas…We wount be sold on BS from agents

    Reply
    Please complete the required fields.



  • I would not want to live in Wales anyway. The language barrier for one thing, my Polish is rubbish.

    Reply
    Please complete the required fields.



  • Taking up what uncle chris said earlier it is the same in the Warrington area, huge numbers (1000’s) of expensive flats being erected which are not listed by estate agents. They are sold direct by the builders and are therefore invisible to the likes of rightmove etc so even though most remain unsold even a year after completion no one offhand ever really knows what they actually sold for. I have even started to see local sales of ordinary houses fall through possibly through over-valuation when the mortgage lenders have had second thoughts after their survey.

    Reply
    Please complete the required fields.



  • Enuii, UC,
    all prices are recorded by the land register and made up their statistics published with just one month delay

    Reply
    Please complete the required fields.



  • Confused, Enuii & UC.

    As I mentioned above, Yes the selling prices are recorded – but the original asking prices for new builds are not visible to the public

    Reply
    Please complete the required fields.



  • Agreed, selling prices are recorded as you say but the original ‘board’ price that the vendors/estate agents aspired to are not which is where websites such as property snake come in. The land registry figures can easily be 3 months adrift of reality by the time contracts are exchanged which means that if you wait for the land registry to register a fall you may well have missed the window of opportunity to max your sale before the rot sets in.

    Reply
    Please complete the required fields.



  • dohousescrashinthewoods says:

    Anecdotal: My wife and I were out at a Wagamama on Saturday night and it was dead. Seems like something is eating consumer spending.

    Wagamama is normally buzzing, with people queueing out the door for a quick and cheapish meal out. Literally half the tables weren’t even set and there was only one waiter serving, with the two others sitting around filling up soy sauce pots.

    I commented that it must be because it is the last weekend of the month but my wife pointed out that it is the second-to last. If consumer spending is growing, I would like to know whose spending that is, because the evidence there was of drastic shrinkage. Maybe Waga’s has gone down hill or maybe any number of other things, but ian interesting observation.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>