Monday, February 21, 2011

Sellers raise prices into falling market: madness

Chance of [your house] selling [in 2011] just 43%

Henry Pryor, housing expert (commentator, and a good one) highlights the folly of asking prices rising 3%+ when sales and demand are so low. A quick calculation shows the average seller has only a 43% chance if selling this year. Of course, if you're reading this and your house is on the market, I'm sure yours is special...

Posted by notyethomeless @ 09:17 AM (1499 views)
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4 thoughts on “Sellers raise prices into falling market: madness

  • That’s a splendid bit of maths. Seems perfectly plausible to me, of all the houses that were up for sale round my way a year or two ago, half of them are still up for sale, a quarter actually sold and a quarter were taken off the market again.

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  • …but crucially no-one lowered their prices, as the quarter that sold were sold to those with inherited money??

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  • I find I do the same on a losing stock, it takes a great deal of control to accept that you made a bad decision and let it go at a loss. You keep telling yourself that you can’t have been that wrong and if you only hold on a bit longer you’ll at least get your money back but generally it is true that you should never catch a falling knife. Much the same with hose sellers, but they have no other ‘stocks’ to make up the loss and holding out for more when the market says no will cost them dear.

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  • I see a lot coming back on the market. When we go view them (other half’s idea) they give us tales of sales fallen through. [Hey, that sounds like a great song! Perhaps Elvis Costello could write it…]
    Half sell, and a third of those fall through.
    Without pressure to sell, though, you’ll not get reduced prices. Why sell if you can hold on for prices to come back up?

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