Friday, September 12, 2008

And so it gets worse and worse

House Price Falls Accelerate

Asking Prices for homes on the market in England and Wales fell by 0.9% this month. Monthly falls were observed in 8 out of 9 English regions and in Wales. Asking Prices in England and Wales have fallen 2.0% over Q3. Greater London registered a fall of 2.0% since August thus reducing the average asking price by nearly £7,000. Every English region, Scotland and Wales registered mix-adjusted average Asking Price falls over Q3.

Posted by tinecu @ 12:07 PM (1333 views)
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11 thoughts on “And so it gets worse and worse

  • …or better and better, depending on your VI.

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  • Plz help me someone my Mother is buying a house 100K reduced from 135K is she still mad to buy ? should I stop her?

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  • The problem with asking prices is that the gap between them and achieved prices may vary over time. At the peak of the market there wouldn’t be much difference between the two (in fact achieved price could be above asking price – gazumping) but now the gap is larger (hence lots of unsold properties on the market).

    I suppose asking prices gives you a bigger sample than achieved prices and therefore makes it easier to make mix-adjusted comparisons.

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  • The conclusion to draw from my first para above is that the decline in achieved prices is greater than the decline in asking prices.

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  • I think this gives us more of an idea of sentiment than anything. Interesting that overall, people still (on average) expected to sell for higher than last years prices right up until as recent as July. Good to see reality is finally starting to sink in to the masses though.

    I also find it quite refreshing to hear the facts being presented for what they are without any VI spin or opinions.

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  • Icarus is right, and it also makes Home.co.uk’s boast that their indicator is a forward market indicator laughable. Arguably sellers are looking backwards, desperately trying to achieve last year’s prices, while buyers are the ones looking ahead to further price falls. In that sense this is a backward market indicator!

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  • Help Me!!!!

    yes.

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  • Help Me!!!

    Agreed – would advise getting your Mum to wait or at the very least offer down on the dropped price. Anyone who drops 35% off the price in one lump is either desperate or has an inkling of where the prices in your area will ultimately end-up…

    Last thing you want it to be buying negative-equity

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  • – Help me,

    Yes, hold fire, don’t buy yet.

    The property market is in a period of severe adjustment, one that is almost certain to over-correct before finding a sustainable level.

    The sustainable level for prices is probably in the order of 40-45% below their peak, but because prices will over-correct, it would be foolish to enter the market at more than 50% of peak value.

    A property originally offered at £135k was probably never worth more than £125k, so anticipate it having a post-crash value of £70k, but being able to buy for £60k or less at the bottom of the market.

    If your mother buys at £100k, your inheritance is going to take a severe hit..!

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  • help me

    and so is her standard of living…

    I succeeded in getting my parents to sell (going abroud for three years)

    I failed with a few (quite intelligent) friends, who have bought in the past eight months.

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  • @Help me

    Tell your mum, assuming she is a cash buyer, to hang on until the last minute and then gazunder to £90k. If that works, then muck about for another couple of months and then do £80k and so on. Sooner or later her vendor will get hacked off, but by then your mum will be able to find somewhere just as nice for £75k anyway.

    One of my property developer chums was still doing this until the late 1990s.

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