Sunday, May 1, 2016

The analysis HP referenced… Sauce for Bears??

Great Expectations The gap between asking and achieved prices Lonres.market.briefing. 12 April 2016

This is the 10% which the Tgraph was referring to. Is not a 10% fall but actually the report refers to what percentage of properties have had their asking prices REDUCED by 10%+. "Analysis of quarterly sales in prime central London shows almost half (49%) of properties sold in Q1 2016 had their asking price reduced before a sale was agreed. This is higher than the 40% of properties sold in Q1 2015 and 27% two years ago in Q1 2014. The lettings market has also seen an increase in price reductions, from 32% a year ago to 45% in Q1 2016." But aren't ALL rents increasing?? "and a fall in the number of overseas buyers are all impacting the prime central London market." Eh? A But the number of overseas b uyers are increasing .... surely? Q: Where the smart money goes does the rest follow?

Posted by techieman @ 10:20 AM (2310 views)
Please complete the required fields.



10 thoughts on “The analysis HP referenced… Sauce for Bears??

  • The rent are decreasing in London, this is the fact.

    Reply
    Please complete the required fields.



  • We bargained our property down 5%. I have also ALWAYS negotiated rental prices below the stated when I rented.

    Anybody who does not even try to get a reduction is a mug because the seller always has optimism bias.

    Reply
    Please complete the required fields.



  • britishblue says:

    Libertas @1. This is not necessarily the case. I remember around 2 years ago a flat being sold in my area. It was on the market for 340k. The estate agents had 70 people around to see it over in an open house weekend. It went for sealed bids and sold for over 420k. The flat wasn’t probate, a dump or as a result of urgent divorce proceedings. So was realistically priced and not a fire sale. But there was a buying frenzy of a few months that saw this craze of open houses, stacking loads of punters in over a weekend and then bids way over the guide price. If you bargained your property down by 5% it means either the sellers didn’t have a better offer or you were in a position to proceed when someone else wasn’t and the vendors needed to sell.
    The market only tends to go down with people that are forced to sell: Probate, divorce, business failure, health, etc. People tend to bank the value that they think their house is worth and stay put. I suspect 2016 is going to be a very interesting year.

    Reply
    Please complete the required fields.



  • What we did, was avoid areas near a tube station. We had been looking at places closer to Turnpike Lane and Seven Sisters where there were feeding frenzies. However, that was not the case in Edmonton and we had a fixer upper, plus, we knew that the area was about to get on London Overground, with the feeding frenzy to come.

    The mass open weekends and feeding frenzy are a sign that prices are too low. The frenzy ends when prices adjust upwards. Agents will shift it up fast because they want price to ration the number of people bidding.

    “The market only tends to go down with people that are forced to sell” Not true, those who want to sell, who are buying houses reduced in price will sell for a reduced price.

    Reply
    Please complete the required fields.



  • Libby @1. You miss the point. The issue is relatively it doesn’t matter what you or I secure as a discount individually it’s the aggregate that matters.

    Icarus on a different thread may have a point… the market got away from itself as agents encouraged sellers to expect higher and higher prices.

    A dose of reality has kicked in and more sellers are having to reduce their prices by more than 10% from their initial listings. A possible leading indicator of stagnation or perhaps falls – although how that is scientifically measured… who knows. But of course prices are determined at the margin.

    Reply
    Please complete the required fields.



  • Libby @1. You miss the point. The issue is relatively it doesn’t matter what you or I secure as a discount individually it’s the aggregate that matters.

    Icarus on a different thread may have a point… the market got away from itself as agents encouraged sellers to expect higher and higher prices.

    A dose of reality has kicked in and more sellers are having to reduce their prices by more than 10% from their initial listings. A possible leading indicator of stagnation or perhaps falls – although how that is scientifically measured… who knows. But of course prices are determined at the margin.

    Reply
    Please complete the required fields.



  • Libby @1. You miss the point. The issue is relatively it doesn’t matter what you or I secure as a discount individually it’s the aggregate that matters.

    Icarus on a different thread may have a point… the market got away from itself as agents encouraged sellers to expect higher and higher prices.

    A dose of reality has kicked in and more sellers are having to reduce their prices by more than 10% from their initial listings. A possible leading indicator of stagnation or perhaps falls – although how that is scientifically measured… who knows. But of course prices are determined at the margin.

    Reply
    Please complete the required fields.



  • Sorry… fat fingered the WiFi. ..bloody sbucks.

    Reply
    Please complete the required fields.



  • @techieman – best keep the fat finger isolated to HPC posts and not the trades on the S&P 5 !

    Reply
    Please complete the required fields.



  • Jack.. exactament!

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>