We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Repos up a staggering 92% iYear on Year
Options
Comments
-
So really, what happens in 5 years when former seller that previously had their house on teh market and had taken it off decides now is the time... but prices are valued at still 30% below where they where when they took it off the market BUT... The house they are upsizing to has also fallen 30% Do you think they wont sell then?0
-
Again Repos will be the drivng force for prices in 2009. But numbers of houses on the market will reduce as those who do not need to sell withdraw from the marke
Every time I see this sort of oft-repeated comment, I have to ask the question - so who was it that were only moving house because they liked to see the size of the cheque they got for their old one? People don't move houses for fun.
There will be a removal of the speculative/amateur investor element of the market (increasing sellers and reducing buyer demand) and tough economic circumstances may well dissuade some people from buying or taking on more debt to trade up but the notion that people who would otherwise have sold a house and bought somewhere else are going to shut up shop because they can't get peak-of-bubble prices for their old place is a nonsense.
If your circumstances dictate that you want/need to sell up and move and you have equity in your house (which most people who bought 2005 or earlier will have currently) then there's absolutely no reason why you would withdraw from the market. The market doesn't just dry up because headline prices fall and people think "sod that, I want a huge amount for my old place" - otherwise petrol stations would be rationing sales and holding out for £1.30 a litre still.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
So really, what happens in 5 years when former seller that previously had their house on teh market and had taken it off decides now is the time... but prices are valued at still 30% below where they where when they took it off the market BUT... The house they are upsizing to has also fallen 30% Do you think they wont sell then?
No, they will then as it achiveS the same net goal but they will have more chance of selling as lending would presumably be better, less repos on the market and less unceritaintly.
Is that hard to understand? It's a Buyers market why sell?0 -
Every time I see this sort of oft-repeated comment, I have to ask the question - so who was it that were only moving house because they liked to see the size of the cheque they got for their old one? People don't move houses for fun.
Really !!!!!! I moved beacuse I wanted a bigger house I did not need one(3 people in a 3 bed now 3 in a 5 bed)
I will think you will find most people move because they want to not because they need to.
If you needed more space but did not want to move you can extened etc so your coment is very very flawed.
I think most owners would confirm they may of moved for more space etc but could they of coped if the market was poor (eg not much chance of selling and the hassels that go woth that etc).
Damn right they would have belive it or not, not everybody lives like a sardine.
Also you want a buy a 4 bed I belive do you need to or just want to?
Has the price adjustment only made that possible for you?
So simple reverse pychology says your decision to move will be on wanting to not needing too.
Surlely that is the same for anyone wanting to move from rented to owning after this is all over? They dont need to move out of rented.0 -
Really !!!!!! I moved beacuse I wanted a bigger house I did not need one(3 people in a 3 bed now 3 in a 5 bed)
I will think you will find most people move because they want to not because they need to.
If you needed more space but did not want to move you can extened etc so your coment is very very flawed.
I think most owners would confirm they may of moved for more space etc but could they of coped if the market was poor (eg not much chance of selling and the hassels that go woth that etc).
Damn right they would have belive it or not, not everybody lives like a sardine.
Also you want a buy a 4 bed I belive do you need to or just want to?
Has the price adjustment only made that possible for you?
So simple reverse pychology says your decision to move will be on wanting to not needing too.
Surlely that is the same for anyone wanting to move from rented to owning after this is all over? They dont need to move out of rented.
Well, if they merely want to move on a whim (thereby putting themselves through one of the most stressful situations anyone is likely to experience) they'll find that getting that bigger, better house now requires less money and for those who can pony up a decent deposit (using their equity from the old place) borrowing that reduced sum is very affordable thanks to slashed interest rates.
Your argument that people will hold off because there might not be such a large sale price on their old place doesn't hold up no matter whether you look at a market driven by real reasons to move or driven by aspiration. Markets trade whether they are going up or down and there was a thriving housing market before the speculative element was introduced.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Not a Dig, but why did you not sell that house as prices in real terms continued to fall for another 5 years?
According to what some are saying because prices are falling more owners will sell becuase prices are falling.
I think now you get where I am coming from.
Perhaps in hindsight it would have been better to sell a year later. But the reality is you knew you would have to price it under the cheapest equiverlent to guarantee a sale.
Would you of actualy have been any better off in reality (mortgage cheaper than renting etc) and would you of actualy sold with all what was going on?
Also you did not lose it and can vouch things got better.
All these things go through the mind of someone thinking to sell detering them from selling.
Unfortunatly if you are forced you have not got the choice.
No prob, my thoughts;
"Why not sell, as prices fell for 5 years" - who knew they would do that? No internet to speak of, not the stats we have to examine bubbles now, etc...I wanted somewhere to start a mortgage so I'd be around 50 by the time I finished paying, so I got on with it. Prices were not a struggle. For me, personally, Dec 2007 prices were not a struggle either; a survey stopped us buying, that's all.
I agree that the time has passed for STR, so that might limit some of the possible sellers. But those, like me in 1991/2 who didn't give a thought to selling, will not give a thought to it this decade, either. Those that are "thinking about it" are doing so for a reason, it may not be a "have to" reason, so they can pick their moment, but they may decide that 18 months of drops is enough...and what does it hurt to be on the market?
It never occurred to me to rent after a year of buying. But that may be because I never considered renting in my life, until the survey fell through in 2007. Too busy being Mitchaa when I was 25 !! Now I "know better", but does that actually make a difference. Not much. Like another thread, are we now too busy analysing to get on and "do" something...? Was too busy having fun at 25. And, it was a different world altogether back then.
"prices are falling so more will sell" - I think this might be right, to a degree. 'More' in the sense of more than at times during the previous 12 months, not 'more' meaning more than 2007, though. Just as I did in 1990, thought hell prices have dropped a big chunk, cannot tell how long that will go on for - might be time to get on with it - turned out wrong, but who knew? No-one.
Especially at spring time, after the Xmas quiet spell, that will mean some/more buyers will be thinking they can get their next house cheaper, even if not at the bottom, and hoping that some buyers have been biding their time, but might not wait for ever, so it doesn't hurt to put your house on and test demand.
I think it is complex because of the usual two-stage sell/buy for the majority in the house chain. FTBs being out of the market hold up chains, but that doesn't stop the chain hoping they can be 1 of the lucky chains.
New rightmove instructions 43000 vs 89000, I think someone said - nearly 50%, though down, is still a fair chunk of turnover. Someones got to be the lucky one. If its not on the market it will never sell. It doesn't cost much to sit there on display.
Just as I was a buyer in 1990, so people now will be hoping that the equivalent of me is out there now, still buying.
The deterrent factor only applies if you are thinking you can completely sit it out, renting instead, and as you say there are reasons why that might not be a goer. Missed that boat, mostly.
But if you want to buy something else, then you have to sell as well (unless you are rich).
The major difference in 2007, to when I first bought, was the affordability. If I was on a 100% mortgage at 6x salary, then yes I would be dead scared - if IO too, I would be sh*tting myself.
For 2007 buyers, downsizing might have been a good idea. Although, its probably too late, already in NE. For 2004/5 buyers, they might still have a chance to avoid NE, but if on a 5yr fixed they are still being crucified on IRs, plus losing equity each month, they might be the type of person feeling the need to sell.
Not sure what all the above adds up to.
Humans are contrary b*ggers. Will do what they shouldn't and not do what they should.0 -
Well, if they merely want to move on a whim (thereby putting themselves through one of the most stressful situations anyone is likely to experience) they'll find that getting that bigger, better house now requires less money and for those who can pony up a decent deposit (using their equity from the old place) borrowing that reduced sum is very affordable thanks to slashed interest rates.
Your argument that people will hold off because there might not be such a large sale price on their old place doesn't hold up no matter whether you look at a market driven by real reasons to move or driven by aspiration. Markets trade whether they are going up or down and there was a thriving housing market before the speculative element was introduced.
:rotfl:
So ok liquity is not an issue and it is easy to sell and buy?
They could wait in their small house untill the market is stable price drops 30% but the one they want drops 30%
Or they can do it now at 20%:rolleyes:
Add to that all of you on here said no one on earth should buy right now what is the insentive.:rolleyes:
!!!!!! you are so MSE:money: :rolleyes:
Sorry your argument is so full of holes it could have PG written on it.
You tell people not to buy this is going on for years but you think this is a great time to move.:rolleyes:
Sorry for all the:rolleyes: but I think !!!!!! as lost the plot if he thinks its a good sellers market out there.0 -
how many repos can you by compared to non-repos on the same street?
repos have limited supply. their owners (the banks) will not hold out for a "good" price like a homeowner would who doesn't need to sell. the bank will usually accept the first reasonable offer that comes in to them.
Banks are under a legal obligation to obtain the best reasonable price they can. I don't see that repossessed prices should necessarily cost more than normal ones. I used to work for LloydsTSB recoveries department and we marketed properties with a view to obtain the best price rather than the first reasonable offer. We rarely auctionned and did not accept offers below the agents valuation....0 -
Radiantsoul wrote: »Banks are under a legal obligation to obtain the best reasonable price they can. I don't see that repossessed prices should necessarily cost more than normal ones. I used to work for LloydsTSB recoveries department and we marketed properties with a view to obtain the best price rather than the first reasonable offer. We rarely auctionned and did not accept offers below the agents valuation....
thanks for clearing that up - how would the bank determine a 'reasonable' offer? if a potential seller knew it was a repo they would probably put in lower offers and try their luck.
from reading your post it seems that repos would be valued around the same prices as other properties in the immediate area. is that a correct assumption?0 -
Cannon_Fodder wrote: »
"prices are falling so more will sell" - I think this might be right, to a degree. 'More' in the sense of more than at times during the previous 12 months, not 'more' meaning more than 2007, though. Just as I did in 1990, thought hell prices have dropped a big chunk, cannot tell how long that will go on for - might be time to get on with it - turned out wrong, but who knew? No-one.
Sorry I fail to see how you can not see it as somone who did not consider it in the past.
Also in 2007 and 2008 there were record property numbers on the market as people looked to STR. Most could not sell or have still left them on the market.
So you think the people who could not sell then will think "hey its droped another 20-30% lets go for it.?"
I really don't know why you are trying to convince yourselves that their will be a glut of people selling this year that are not foreced.
Time will tell but full grovelling will be expected in 12 months as I am proved right.
A marked decine in the number of houses coming to market is not a sign of more coming on.
Unless a 2.5% drop in prices is a sure sign of prices going up next month.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards