Saturday, March 29, 2008

Media Tosh!

What's happening in the housing market where you live?

"Experts give their verdicts on the health of the property market around Britain" sure! "Expect to see heavy discounting of those homes that are too close to a road or a pylon" i.e. 90% of UK homes "The prices of those family homes don't move, except to go up" If sellers were to price more realistically at the same time as lenders were able to normalise lending criteria, we could see a speedier harmonisation of seller expectations and buyer affordability"

Posted by confused76 @ 12:12 PM (3893 views)
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19 thoughts on “Media Tosh!

  • Where I am it’s very slow. Few being sold. Asking prices not really changed, but larger discounts on some properties.
    Houses prices to sell are around 20% cheaper than usual. Those not priced to sell, are simply not going anywhere.

    I think it will be a while longer before we start seeing larger drops.

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  • The more revealing estate agent quotes are from outside the SE monetary cess-pit, i.e:-

    “It’s been extremely slow in Lancaster this year. There is an abundance of apartments, a third of the housing stock, owned by investors who want to offload. They are lying empty. Prices are really falling. There is a lot of negative equity. Nothing is selling. We’ll end up giving them away, just to get rid of them.”

    “In the Glasgow and Edinburgh commuter belts – places like Cumbernauld and Dunfermline – there’s a problem with oversupply of new-build developments. Prices on these new estates have slowed; developers are offering lots of incentives to buyers, especially now that petrol, fuel and food prices are beginning to bite.”

    The rest of the quotes are from areas distorted by buyers from the SE.

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  • Nothing is happening. Nothing is selling. Estate agents and vendors are still in the denial phase. Don’t expect price falls until the autumn when estate agents will realise that lower commission is better than no commission.

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  • In my neck of the woods (15 miles south of Cambridge) the market seemed stagnant right through 2006, but then jumped last spring.

    Right now we have an unprecedented number of £500k + properties on the market, including many at £1M +

    I sense that quite a lot of older people feel this is a good time to downsize, but no-one is interested in doing the reverse

    Those trying to sell (at all price levels) tell me that there is simply no interest – no viewings, nothing

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  • Fallin-offa-kliff . . . . . . . . says:

    Prices in West Swansea, where I live, are falling if they’ve been on the market for some time by 10% – 20% . For example, a 5 bed property has dropped from £435,000 to £350,000 over the last few months – a 20% drop. However new properties are still coming to the market at massively inflated prices with many £500k+ recently – people trying to cash in I suppose before it’s too late and estate agents trying to catch sellers before they evaporate.

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  • Letthemfall says:

    The Estate Agent Times always carries these articles. Prices are sticking in the SE but I’m not sure they are selling terribly well; quite a few have been on the market for some time at huge prices. Wait till a few more city jobs go. Then maybe we’ll see prices start to jerk down. Prices will hang for a while, then suddenly take a lurch downward. People just can’t bear to think their houses are worth less than they thought.

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  • tyrellcorporation says:

    Exeter house market went dead about 4 months ago. The house for sale next to mine hasn’t seen any interest whatsoever. I think the top end of the market (£600k+) is still reasonably busy though as Exeter is still an extremely popular city for London/SE downsizers.

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  • I’m 30 mile north of London. There are 100s of new build flats, some still being built. Asking prices are stable but don’t seem to be selling. Quite afew were bought my an estate agent off plan, so I am told. If this is true it explains why some of the flat prices are gravity defying.

    Few houses for sale, I’ve seem two next to each other, one sold last year for 227k, the others asking price was on for 235k for 6 months, has dropped 10k, likely to go further.

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  • Large numbers of “no upper chain” flats for sale in Cambridge. BTL bust?

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  • planning4acrash says:

    Wow, http://www.propertysnake.co.uk up to 142,576.

    You wait, it’ll hit 500,000 pretty damn soon. People have only just started to understand that prices must go down.

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  • FWIW

    Tony Levene of the Guardian was on Sky earlier – he’s clearly got the BTL scandal between his teeth. While he doesn’t seem too sympathetic towards the greedy players who took the bait, he’s certainly got the surveyors who conspired to over-value in his sights. You could say that he’s ‘on-side’

    If the surveyors start worrying about litigation for over-valuing, they’ll start pitching low to err on the safe side..

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  • Spoke to someone last week who phoned Colley’s (The valuation and surveying service from HBOS) Newcastle upon Tyne office – Q, so how are things going locally? A, “the markets gone dead at the moment”

    On my travels throughout the North of England there are lots of properties where the For Sale signs have been up for 12 months or more – little or no movement. You can always tell things are not so good for sellers when they market the property via 2 or 3 EA’s !

    New developments essentially for the BTL market are in (IMO) finding the current conditions most difficult – the deposit required has typically gone from 15% to 30% and if the rental assesment doesnt quite stack up the deposit rises to 50% !

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  • planning4acrash says:

    The thing that gets me, and this is a scandal, is that estate agents employ mortgage brokers. You go to an estate agent and they advise you to see their own broker. The broker gets you the best deal possible. The estate agent then has a good idea of how much cash is floating about. I am sure that they rig prices to match short term credit availability. I was about to take the plunge late 2005 until I saw that going on. I went to Poxtons and they recommended their brokers, who ramped things up on what I could borrow. Why else are brokers offering as much as over priced flats are rather on what you can borrow? It should be illegal for any business links between Estate agents (valuers) and mortgage brokers. Later, I went to Abbey, who said that I could only borrow 3.5x salary. I said about prices, they said that I’d have to go to a broker to get a deal that relates to todays prices. I smelt a fish and gave up the hunt.

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  • planning4acrash says:

    Its similar to the problem of accountants and auditors being linked. A conflict of interest if ever there was.

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  • Well TC,

    Who would have expected the little village of Crickhowell to get a mention here – I have fond childhood memories of that place – my grandparents lived there!

    – Maybe I can afford to buy their old house now!!

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  • Waiting For The Crash says:

    I live in Winchester, which has seen some of the highest rising property prices in recent years and is truely an over-valued market.

    What I’m seeing is more properties are now available to view on righmove, they never made it onto there before they where sold. Plenty of 1 bed homes have come onto the market and are not selling, (buy-2-let panic selling/getting out while there’s still a chance) along with many other types of property, across all price bands are now being advertised.

    Although some sold signs are about but lets see if they complete. One sold house down the road (not yet completed) is being offered for rent as a let to students, seems some BTLer is optimistic. The last house near me took 5 months to let.

    Asking prices have started to fall for some 60’s/70’s style properties and ex-local authority, flats etc. 30% in some cases. Although the middle-class properties (older victorian type, town houses) asking prices have risen, maybe the middle-class don’t want to forgo their main topic of dinner party conversation and what would their friends think if they had to accept a lot less than the asking price. Their friends can check on the internet these days. Only the best located/designed/priced are selling (well having sold boards put up)

    A development on a brown field site near my house has not started yet, been 4 months now, make of that what you will.

    Overall more supply, less demand and falling asking prices by as much as 30% in some cases and they are still not selling. Of course this does not look like a crash, its just a slight re-adjustment. Working class and BTL in fear, the middle class still in denial, moving towards fear, crash in progress.

    I rent! Yippee.

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  • speculatorone says:

    Same in Nothamptonshire. Agents are still putting inflated prices on new properties. In my village; 1 property has been on the market for about 15 months for £480K and cannot sell, last week his neighbours house goes up for sale at £575K, then the same day another goes up for £650K. If you could see the properties they are nothing special and will never ever sell at that price. I just wonder what planet some agents are on.

    By the way the agent is Savills. Just to prove how much they over value property, another one in a village called Slipton has been repossessed. Savills had it on market for £565K. When it was repossessed it went up with another agent at £469K. It was then reduced to £449, 439 etc and is now £405K and still not selling. Savills have just relisted it at £565. As I said what planet are they on, can anyone explain it?

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  • P4C – very valid points – the other thing the EA will do is put you at a disadvantage if you dont use their services/broker etc.. – I have seen numerous buyers pushed to oneside the minute they say they have (a) already placed their own property on the market (B) have their own Solicitor (c) Have their own IFA or mortgage broker.

    The greedy b******s not only want to act for the vendor but the buyer also – and when the prospective buyer wont play ball the EA in my experience becomes a lot less co-operative.

    I saw a situation last year where a guy I know went to look at a house and was prepared to meet the full asking price – the EA determined his circumstances and when he found that he wasnt a first time buyer promptly told him that the vendor had received an offer £6k above the asking price – this was bulls**t to get the guy out of the frame so they could match the property with a buyer who made them the most money. This is of course a breach of the law because the EA is legally obliged to pass on any offers to the vendor.

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  • TC,

    Sometimes memories are best left at that, but do you know of an old house called ‘Cherry Orchard’ – I’ve not been there for 40 years!

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