Friday, June 12, 2009

Yawn, house prices, again the measure of national equity…..

Buyers beware as confident home sellers start to hold out for the asking price

''Buyers are beginning to lose the upper hand in house sales as fresh evidence suggests that in some regions of the country sellers are successfully holding out for close to the asking price. Nearly two thirds of estate agents across the country said the difference between asking prices and selling prices narrowed sharply over the past three months''

Posted by hpwatcher @ 10:58 PM (2010 views)
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14 thoughts on “Yawn, house prices, again the measure of national equity…..

  • No one in the UK really cares about creating real wealth anymore, they are just obsessed with watching houses prices rise…..shame there won’t be any jobs for them to pay the mortgage…..I’d love to know where the confidence – and money – of these people is coming from.

    Hmmmmm it’s clear that this is no ordinary bubble that’s bursting……

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  • A big comment for this time of night hpwatcher, particularly on a Friday.

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  • gone-to-colombia says:

    The rules or house buying.

    1. Never consider any hose as a ‘must have’
    2. Ignore what the estate agent tells you
    3. Offer what you are prepared to pay, and then a bit less
    4. Move on to another if the offer is not accepted.
    5. Understand the area and market where you want to live
    6. Have a good look at the property you want to buy at all times of the day and night
    7. Talk to the neighbours
    8. “Buy when there’s blood in the streets” (Baron Rothschild in 1871) I think the present conditions are pretty close to that.

    This is not a complete list others might wish to add their own rules.

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  • “No one in the UK really cares about creating real wealth anymore”

    Most people don’t understand how to create wealth, and those who do, no longer can.

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  • “I’d love to know where the confidence – and money – of these people is coming from.”

    Not much confidence around as far as I can see (discounting bogus ‘green shoots’ articles from second-rate/VI journailists).

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  • I don’t think we are anywhere close to the blood in the streets situation yet. I think things are going to get much much worse once the pet-up supply is unable to hold back any longer.

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  • brickormortis says:

    Does anyone have the stats on the proportion of buy to let mortgages and interest only mortgages? I think we ought to be drawing attention to these because most of the people I know have at least one of them or in some cases both. With falling prices, rising unemployment and equity withdrawal of mum and dad drying up, what provisions are there for repayment in the future? Exactly, none other than hope of further prie rises.

    THe whiole system has gone to tit and as for the times, I would only use this paper to clean up with.

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  • japanese uncle says:

    The smartest way of smoking is not to smoke.

    The smartest way of buying a house is not to buy a house for at least two years to come.

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  • The thing is one or two might be getting near the asking the rest JUST ARE NOT SELLING. I track 50 + properties in Dorset £200000 to £250000 and NOTHING is selling. I put these 50 on my list months and months ago, some went Under Offer or STC but then revert back or sit there for weeks and weeks, NOTHING has sold. I can’t have chosen the only 50 properties in Dorset that are not selling. Yes, a small percentage of people may be lucky enough to get close to the 2007 value from someone who doesn’t need a mortgage (lenders are valuing well below peak), but the rest are just sitting there, and until we get those prices down the market will stagnate. Buyers want 25 – 30% below peak, otherwise we can’t say “property is more affordable now than it has been in the last 4 years.” And it certainly isn’t a good time to buy, buyers can afford to wait, sellers can’t. As Merryn Somerset Webb said: “The truth is that all real bear markets tend to offer the unwary investor one last opportunity to lose money. The summer of 2009 is probably that opportunity this time round.”

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  • I reiterate that the majority of people in this country still believe that property market relies on sentiment/confidence and sentiment/confidence alone.

    I am stung to see so many of my well educated, intelligent and knowledgable friends, colleagues, and relatives can’t figure out that the property market actually relied on the banks passing on unlimited debt to unlimited number of investors with unlimited money. And that voodoo magic is no longer working.

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  • Polyester Eyed Joe says:

    have to agree with sybil13

    i’ve been tracking solihull in the 300-40k bracket and over the last few weeks sales have come to a standstill. i think june is going to be a bad month for the estate agents. Obviously though with talk of all these green shoots i havent seen one price drop. As for the april and may increases these i believe are down to cherry picking of the best properties. Obviously there was a pent up demand but this has now been met. Example for you, Rectory Road, 399,950, sold in a few weeks. Now this was bought approx 18 months ago at 307k. But I had a look around and its had a lot of money spent on it. All top spec as far as i could see. Now is that really house price inflation. Buy a house for 300, spend 100 and sell it for e.g. 380. Anyway, my original point is….sales have fallen off the cliff round here. The houses that are left are disgusting. Youd think for 400 k youd get something decent.

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  • The public are being told on websites and in newspapers that house prices are all about optimism. Make the FTBs optimistic and up prices will go, once again!

    I think there is a rush to sell in my bit of Essex. Boards sprouting up faster than grass after a summer downpour! There is a lot of hurried activity in 7 or 8 of the Estate Agents in my High Street.

    My take is that we will get a “W” shape in house prices. Next month will show a small rise. I expect prices to fall back quickly in autumn when BoE interest rates rise.

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  • So people in the North have been accepting properties at 74% of asking price. This is a huge story in its own right which should be the headline of this article. Is there any newspaper out there that gives a consistent and balanced view of the market taking into account the previous crashes , false dawns, the suckers rally and then the overshoots: Then further factors in that this time there are other extraordinary factors like UK debt, frozen credit, one of the sharpest drops in GDP ever and outward migration of immigrants.
    Or has the press become a competition for juvenile spinners of the week.

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  • That is the effect QE. Till 2007 banks, estate agents and sellers were manipulation the property market but now is the QE taking the banks place which will not last for long. QE will not give the confidence back to the buyers. Houses are double and buyers know that sooner or later the houses will get there.

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