Monday, November 16, 2009

Treading Water

Interim Management Statement

"The improvement in average selling price is largely the result of a change in sales mix...We have sold a greater proportion of private houses and fewer apartments" "We expect to legally complete c. 9,000 homes for the year ending 31 December 2009...recently the 1,000th Persimmon home was reserved with [Government Homebuy Direct Scheme] since its launch in March this year."

Posted by ontheotherhand @ 01:30 PM (3241 views)
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4 thoughts on “Treading Water

  • So here we have it ….
    Persimmon realise that house prices, by there most basic metric are not rising. The increase in house prices over recent months “is largely the result of a change in sales mix”.
    This has been debated here for the last few months and is evident on the streets of Bristol (and I’m guessing most UK towns and cities)…..There are still large volumes of exclusive and executive flat developments still incomplete after 2 years of inactivity .
    The volume of sales is still historically low, so the ‘bounce’ is most certainly nearly over .

    What happens next is that property prices begin begin their descent … can’t wait !

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  • Interesting. I have looked into buying a Persimmon home around March-April, with a shared equity scheme not dissimilar to the Homebuy scheme mentioned. However the mortgage valuation was about £27k less than the asking price.

    Perhaps surprisingly Persimmon offered us the house at that price, but would not let us use the shared equity scheme – even with us trying a different bank for another valuation. This meant that our mortgage would have been to a higher LTV, and so £100pm more expensive, as well as us needing an additional £4k deposit – which we simply could not afford.

    This house was originally on the market for over £180k, we put in the offer when it was £167k, and were finally offered it at £140k. The sad fact is that I believe that the £140k price was quite futureproof- and for our ideal home too!- but our hands were tied because of the mortgage deal.

    It sounds like the higher sales are because these guys are being a little more flexible with pricing, and they seem to have realised that flats are less likely to sell in the absence of BTL investors – which will increase the average sale prices – these minor details were of course not mentioned on the BBC business news bulletin earlier today.

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  • mark wadsworth says:

    I’m glad to see taxpayers’ money being put to good used, enticing another thousand FTBs onto the property ladder/rate race.

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  • here is a good test

    I can pretty much guarantee when you phone you local estate agent about a house you will get the following BS from them

    1) There has been a lot of interest in this property would you like to see it

    2) There is an offer on it, but it is early days do you can come and view it and place a better offer

    go on call your local agent and see what reply you get from them about any property… bet it is one of the above.

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