Recovery of the Housing Market will come Quickly

huntersc

chickmug wrote: »

As an EA it amuses me when I meet other EA's and they don't know when to stop the BS. They still try and tell me how well they are doing - almost as if they have been programmed on getting out of bed. I usually tell them to 'shut it' as I know what is really happening out there. God help me if I was ever like them I would be mortified.

I know of one agent that it doing brilliant well. Recently hired new staff and is about to open a new office a few miles away. At the height of 2007 they were selling about 20 properties a month, they're now selling 16 (last month) but renting 30% more. The market is actually profitable for them right now. I know not every agent is doing well but some do exist.

rizla01

huntersc wrote: »

I know of one agent that it doing brilliant well. Recently hired new staff and is about to open a new office a few miles away. At the height of 2007 they were selling about 20 properties a month, they're now selling 16 (last month) but renting 30% more. The market is actually profitable for them right now. I know not every agent is doing well but some do exist.

But they are changing from being Estate Agents to Rental agents. surely THAT is why they are doing well.

It's like an EA closing down and starting up a Car showroom and saying that he is doing well, isn't it?

Reference the 16 per mth NOW as opposed to 20 per month at the height of 2007, I would guess that they must have a very specialised market for this to happen - or that they are lying!

Commonly known in the trade as BS.

Gangstabird

Just to make it clear, I bought in 2000 started to think things couldn't get any higher in about 2005, my friends laughed at me. I wanted to have a BTL property, but decided it was too risky as it was all unsustainable. Lucky for me really as I had another child and couldn't have afforded both anyway. I am not trying to buy or sell at the moment, but was quite involved in the housing market in the early 90's.

chickmug

huntersc wrote: »

I know of one agent that it doing brilliant well. Recently hired new staff and is about to open a new office a few miles away. At the height of 2007 they were selling about 20 properties a month, they're now selling 16 (last month) but renting 30% more. The market is actually profitable for them right now. I know not every agent is doing well but some do exist.

I have never dared say that we (EA) do good as it sounds like typical EA BS. Because we are smaller, independent, value in accordance with the prevailing market, will not act where the seller dictates very unrealistic prices (but will try for a short time for the aspirational price), give a very personal service, only partners get involved in the serious matters we do good.

HOORA

chickmug, do you mind me asking what part of the country you are in ?

I just dont think there will 50% falls, but 30 percent, yes. Hence the Banks only giving best rates for 25% deposit, or if BTL 40% deposit minimum to even get a mortgage.

And although it is a sharp downturn it has only opened more eyes to the overvaluation of housing.

Unfortunately my experience of EAs is that as soon as you mention you are a FTB they dont believe you have the cash, and when you prove to them you do they think you are bound to be naive so only offer you overvalued propertiers at your limit instead of offering overvalued properties at what they are selling for ! I didnt get the cash by being naive or frittering it away.

I dont know how they survive - when I went in to one on Friday to put an offer in, there were 4 staff chatting, one had his feetup, no other customers were in, and they just didnt seem concerned, but almost had a look outrage if not indignation that I wouldnt pay asking price.

If they were in sales in another sector they would be collecting P45s.

chickmug

HOORA wrote: »

chickmug, do you mind me asking what part of the country you are in ?

I just dont think there will 50% falls, but 30 percent, yes. Hence the Banks only giving best rates for 25% deposit, or if BTL 40% deposit minimum to even get a mortgage.

And although it is a sharp downturn it has only opened more eyes to the overvaluation of housing.

Unfortunately my experience of EAs is that as soon as you mention you are a FTB they dont believe you have the cash, and when you prove to them you do they think you are bound to be naive so only offer you overvalued propertiers at your limit instead of offering overvalued properties at what they are selling for ! I didnt get the cash by being naive or frittering it away.

I dont know how they survive - when I went in to one on Friday to put an offer in, there were 4 staff chatting, one had his feetup, no other customers were in, and they just didnt seem concerned, but almost had a look outrage if not indignation that I wouldnt pay asking price.

If they were in sales in another sector they would be collecting P45s.

South West quandrant is as near as I will let on otherwise I may get indentified and the NAEA may kick me out for some of the postings I put on this forum. I feel thsi area may be different, in a lot of respects, to other areas judging by what my friends around the country tell me especially the South East. I think if I had been in the South East, or even elsewhere, I wouldn't of enjoyed it.

Like you I really fail to understand EA's attitudes much of which I have learned from reading this forum. I don't like them as I feel more of an individual and can't stand the BS you get even EA to EA.

Why can't they be down to earth, not patronise the buyers, not try and see every sale as a way of making more money. The commission can be OK but the greedy EA's want to maximise the money by pushing all other income streams - HIP's, Finance, Insurance, etc.

tbs624

terrierlady wrote: »

visitors numbers to our developments are up.......

That's because they've all been hit by the credit crunch, are in B&B, and have no money to go anywhere else during the day - there may also be free drinks & nibbles.....;)

GDB2222

HOORA wrote: »

I just dont think there will 50% falls, but 30 percent, yes.

I dont know how [Estate Agents] survive - when I went in to one on Friday to put an offer in ....

You're not making any sense. If you think that prices will fall 30%, why are you putting in an offer now? Nobody will sell to you at 30% below today's prices. You need to wait for the 30% fall to happen, then start making offers. I only say this because I keep seeing people making the same mistake on this forum.

Believe me, anybody around with cash (+ an agreed mortgage) to spend in a couple of years time will be very, very popular with estate agents. In the meantime, they are not taking you seriously, so why bother?

devils_advocate

Rebchappers wrote: »

I have only been on this forum for the past 4 or 5 weeks, but i just wanted to ask something... What was your view on the market say, 2 years ago.... did you all predict that the market would crash the way it has, or were you in the mind set that house prices would continue to rise?

This is just a general question and is not aimed at anyone in particular

It seems that everyone is an 'expert' when it comes to the housing market. If you all know what is going to happen, and are advising FTB NOT to buy now, then why did everyone buy at the peak over the last 3 or 4 years? I dont know if that makes any sense, but its hard to explain what i mean....!

Its honestly not meant as a dig at anyone... im just curious!

And for my next prediction, rents will be lower in 1 to 2 years time than they are now.

Its all to do with the fact that there's only ever a small turnover in stock that makes the market prices. If the number of transactions relative to the total stock falls, there are deflationary price pressures.

The theory applies to the velocity of money increasing inflation, when the money supply remains constant. Similarly, people who bought their house 10 years ago felt that its value had gone up, because one down the road had sold for £x last week. If all the houses in the road were for sale, the prices would be lower.

So rents will be lower because landlords will accept smaller profits or try to minimise losses, because they don't want to realise an actual or historic opportunity loss on the capital value.

There are other influences but these are the main ones.

So Redchappers, you heard it here first!

Swans1912

I don't mind either way with this...... however I get the feeling he is trying to talk us out of house prices falling even more!