Friday, October 17, 2008

HPC News

Homeowners 'in denial' about plummeting property prices

32% think prices haven't dropped, perhaps there is still time to STR to one of this lot!

Posted by yoss @ 09:27 AM (3488 views)
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16 thoughts on “HPC News

  • Don’t know the details of the survey but very interesting reading.

    Annecdotally I know a 4 bed terrace with integral garage that sold for £283k 2 years ago and has just sold within 4 weeks at (asking price) £330k. Given the speed at which it sold I doubt it was less than £320k. Whether the surveyor agrees (assuming it’ll be mortgaged) remains to be seen.

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  • 3 million jobless by end of 2009 will add to the pain. Whoever buys a house, without a good discount, is just ignoring the pain to come.

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  • mark wadsworth says:

    That’s cheered me up!

    STR2007, don’t forget to check the actual selling prices on http://www.houseprices.co.uk/ but check the 2006 price now in case it gets overwritten.

    Can somebody post that saying about “The first stage is denial …”?

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  • Mark Wadworth you have achieved your 15 minutes of fame. Did you know that your blog featured in last week’s Moneyweek. Are the stages: Denial, Anger, Despair, Acceptance

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  • It is astonishing that the general population simply can’t wrap their wee brains around things that are staring them in the face.

    In pre-war Nazi Germany the denial within the Jewish population was, in retrospect, astonishing. As things got worse and worse and the level of violence and intimidation grew by the month, I still find it almost unbeleivable that many more Jewish people didn’t simply leave everything and walk out of mainland europe.

    I suppose in this instance the only really safe places were Britain and America.

    With regards to the property market, people will only really understand the problem when they are forced to sell and can’t. The denial will turn to anger and then to depseration when the realise that, not only has the property piggy bank been broken, but the contents of it have been stolen with their fastly decreasing aand deflated property prices.

    I have just watched “Open House” on BBC1 with that Kristian “My dads a property developer” Digby knob. They were in Sheffield, only 2-4 months ago. They sellor wanted £360k for a semi (in sheffield, not the outskirts of London !) and reluctantly dropped the price to £340k. Wow I here you say, A woping 5.8% drop (my maths might be dodgy please correct me if I’m wrong). I thought she would be lucky to get an offer over 250k but that’s my take. If the sellor doesn’t get her head around the crisis they will simply end up being repossesed and in the bankruptcy courts.

    Should be an interesting way down……

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  • theboltonfury says:

    75% think Kerry Katona is a good role model

    please God, help us!

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  • I heard on the radio a couple of weeks ago that 65% of women think that men with glasses are more attractive than men without. That poll was carried out by……… Boots the Opticians!

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  • 98% of statistics are made up on the spot.

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  • I suppose it depends on how close they are to selling. If people have no plans to sell their property (or borrow against it), it hardly matters what the price is, so let them dream. If they do need to liquidate soon, well… we know how that will go.

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  • I have overheard this conversation a few times in the last 3 months, either at work or in the pub.
    ” I have been looking on rightmove and house prices are not dropping where i live, Its all a media/tabloid hysteria about house price falls its not happening”

    Most of the sheeple are either in denial, comepletely ignorant or both.
    They don’t understand that a grossly over priced property that sits on rightmove for 9-12 months and never sells is not an indication of house prices, but rather an indicator of sellers intransigence.

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  • notaneconomicsguru says:

    There is such a confusion about value and price even the Bellylaugh article confuse and use the two interchangebly. This annoys me considerably. It seems that fools know the price of everything and the value of nothing. Maybe its the case that homeowners know the value of their home but do not know the price?

    If they came and asked me whether my house was worth the same or less than 12 months ago I would answer the same because its value to me and my family is broadly unchanged. If they came and asked me was my house worth the same or less than 12 years ago, I would answer that it has definitelty increased in value because over that time I have extended it and improved it so its worth to me and my family is signficantly higher.

    If they then asked me the same question about price then I might give somewhat different answers or I may if I am being honest decline to answer at all, because at no point in time (even on the very day that I bought it) have I ever had more than a vague idea of how much cash I might receive in exchange for the house – and by definition I will never know the exact amount until the day that I actually sell it.

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  • Tis true…. My house hasnt fallen in value because its beautifully decorated, nice garden and its got room on the front for 3 cars – one of which is a 4×4!

    Notaneconomicsguru is correct . Its worth a quadzillion quid, until you come to sell it when its worth tuppence. Its all about what someone is willing to pay. This is actually good news, when people think there house isnt worth very much at all if they need to sell it, that will be time to dip the toe in the water. I love the fact that more of them think their neighbours house will fall but theirs wont! Classic! And the conclusion?

    “This also spills over into market confidence, where more homeowners surveyed expect the value of their homes to perform better over the coming year than in the past year, indicating that many believe the worst is over despite little evidence to support this.” Erm right!!!

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  • By the time most of the sheeple realise that property prices have fallen by 25%, the actual drop will be well on it’s way to 50%.

    Just because you refuse to believe something it doesn’t mean it is not true.

    For a laugh, watch “Open House” if you can, BBC1 nweekdays at 11am. Professional [email protected], Kristian “My dads a property developer” Digby is singularly failing to mostly get anyone to even view these massively over-valued properties. One guy recently, was flaberghasted that his 2 bed flat in London, that he had up for £365k only recieved one offer of £325k that he just laughed at as ridiculous. I bet in the 3 months this programme took to air, this cretin wished he cold go back and accept the offer.

    The denial stage of assets bubbles is simply hilarious. King Canute springs to mind…Perceptions of value are entrenched with their views on reality. “It cost X and Kirstie Allsopp said it shouldn’t go down in value, so I may accept about 5k under my asking price, but no less…..How else am I going to pay the massive credit card bill that I have built up over the last 2 years otherwise?”

    The concept that the banks are bust, having ramped up the value of property by nearly 400% since the last bust, therefore, and this is the brilliant bit, meaning that they, the banks, couldn’t keep borrowing money on the international wholesale money markets because, well THEY’VE SPENT IT ALL allowing numbskulls to pay 250k for tiddly terraced houses (“well it is in the south east, after all”), doesn’t even come into the equation.

    LISTEN PEOPLE OF BRITAIN: THE BANKS HAVE HARDLY ANY MONEY TO LEND YOU, IT’S ALL TIED UP IN YOUR RIDICULOUSLY OVER PRICED PROPERTIES !

    To paraphrase Descates (I think it’s this french chap anyway):
    I think therefore I know what my property is worth……

    In the words of the immortal Father Jack Hackett : @RSE !

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  • mark wadsworth says:

    @ Holding Out #4, thanks, do you have a link or anything? Ta.

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  • MW.
    There isn’t a link. It is in the magazine itself (Issue 405). There is a section called “What the bloggers are saying”
    If you are a member you can download old copies.

    The following is copied from that download.

    http://markwadsworth.blogspot.com/

    Government figures show a record 202,000
    people were treated for drug abuse last year at a
    cost of £400m to the taxpayer. Yet just 7,300 –
    3.6% – were cured, of which as many as 57%
    could have relapsed. “Let’s assume it relates to
    ‘treating’ heroin/methadone addicts, of which
    there are 333,000” in Britain, says Mark
    Wadsworth. Dividing into 333,000 users
    translates as £1,200 a year or £3.30 each a day.
    That “would just about cover the cost of
    providing them with a fresh needle and safe
    dose of heroin per day”.We should have a
    regulated, legal market. This would slash deaths from heroin each year from the
    current 1,000. It would free up police and deprive criminal gangs of billions of pounds
    in income. And “our troops in Helmand wouldn’t need to wage this stupid war against
    the drug-funded Taliban. They’d be… sourcing raw materials at their lowest cost;
    ensuring some sort of financial stability in the region.” What’s not to like about that?

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  • mark wadsworth says:

    Holdingout, thanks a million, I must track it down. I bet you that they picked that article up via Adam Smith Inst. blog, who also linked to it.

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