Monday, February 18, 2008

The reality of selling in 2008……

Unsold homes swamp property market as owners sell now to avoid big losses

''Soaring numbers of people are putting their homes up for sale, but may struggle to find a buyer, research warns today. On average, each estate agent has 64 properties for sale, the highest number ever recorded at this time of year. This is nearly 20 per cent higher than the same month last year, a sign of the dramatic property downturn over the last few months. But the glut of properties means they are staying for sale much longer than during the boom of the last few years. ''

Posted by hpwatcher @ 09:11 AM (2016 views)
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15 thoughts on “The reality of selling in 2008……

  • ”Miles Shipside, commercial director, urged homeowners not to think that the sharp rise is the sign of another boom.

    In fact, the Rightmove index shows that asking prices have been like a rollercoaster over the last few months. For example, they fell 3.2 per cent in December – and rose by the same amount this month.

    If all the ups and downs are ignored, today’s asking price is simply back to where it was in May last year.

    He said: “It is not the start of another price boom, but the interest rate cuts have no doubt given some sellers headier hopes.

    “These are likely to prove to be unwarranted given the high level of existing property that is already on the market and the length of time that it has been there.”

    Mr Shipside warned buyers that mortgage lenders and surveyors are being much more cautious in the current climate.

    Many surveyors are ‘down valuing’ properties, which means they warn lenders that it may not be worth as much as the buyer’s offer.”

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  • sacred contracts says:

    “This is a far cry from the height of the boom last summer when homes were sold within days, often for much more than the asking price.”

    What about all the houses that didn’t sell during that “boom”? There were plenty. A quick check on propertysnake shows plenty that have been on for over 300 days… and those are only the ones that haven’t managed to sneak past the propertysnake checks by renewing themselves by changing estate agents for instance.

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  • The comments below the article say it all.

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  • As you guys know, HIPS only last 6 months, after which you’ll have to fork out another £400 to keep your property on the market. Now I know that these are small change compared with the amounts involved in equity, solicitor fees and tax, but I can’t help but wonder if as we get closer to the average 6 months threshold,there might be plenty of reductions by people who don’t want to pay the fee twice.

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  • There are conflicting stories from Rightmove and RICS. In the Metro today (see here), Rightmove said: “The seasonal boost had been exaggerated this year due to a shortage of properties being put up for sale, leaving estate agents competing for business.” Yet in this Daily Mail article, RICS have said the number of properties per agent is higher than normal. So who is telling the truth?

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  • I thought the Metro and the Daily Mail come from the same stable don’t they (or should I say pig sty?)

    Who is telling the truth? Neither probably.

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  • this is nothing more that sellers desperate to sell and using the old trick of price it high and then offer a great deal in way of a reduction

    They are assuming, with the help of their EA advicelines, that a couple of rate cuts have envigorated the market. This is a combination of greed, desperation to pay off debts and having heads in the sand. ‘My house is worth £XXX and no one can tell me differently. Why? Well, it must be because I paid £XXX a year ago and prices only ever go up!’

    Many sellers would have a mentality of ‘you never know, I may get lucky and this will all be ok, so I’ll chance it. I might find an idiot ‘

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  • I’ve just noticed the land registry figures have been updated for England and Wales (see: house prices in your area BBC, on hpc homepage). There’s a lot of negative figures!

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  • I noticed over the weekend that the Daily Mail and The Metro companies are actually housed in the same building. ‘The same stable’ ? Too right. The quality of journalism these days is REALLY BAD. I wouldn’t draw any conclusions from either of these toilet rags.

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  • I’m not surprised that 20% more sellers are on the market. Houses have not sold quickly in my local area. Possible job cuts in Canary Wharf and the City have dented confidence.

    I believe that attitudes and priorities have changed – this time last year, people were looking for investment opportunities in “trading up”. This month, people seem more concerned with paying off credit cards.

    I think that people looking for houses right now, are genuinely looking for somewhere to settle down and live….sounds OK to me.

    My IFA friend in the High St says to expect house prices to drop slightly as sellers trim their asking prices (Rightmove index). I’m in Essex commuter land. Does that sound accurate to you?

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  • Remember, no more boom and bust, the economy is strong, good economic fundamentals, lack of supply, huge demand

    So why aren’t they selling? Answers on a postcard to:

    Fatty Curry
    BBC Breakfast, (Though check the canteen first)
    BBC Television Centre,
    London.

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  • Very interesting to see how different two interpretations of the same report can be – this article in today’s Mail vs the front page of today’s Express.

    Frustrating though the current situation is, it has to be good news that the Mail has become so bearish.

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  • ”it has to be good news that the Mail has become so bearish”

    it’s a war over what stories are most people are likely to want to read…

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  • mark wadsworth says:

    Su, that is brilliant (I’ve looked at the BBC property section before but didn’t notice that one)

    Prices in my area down 7.5% in three months, hmm, in other words, my landlady has lost four times as much as we are paying in rent, tee hee.

    Thanks!

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  • Mark W. You’re welcome. 🙂

    Some places in N Yorkshire have shown annual falls as well as quarterly falls.

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