Auction prices plummeting?

Cannon_Fodder

http://news.bbc.co.uk/1/hi/england/7703295.stm

House featured, suffered a 30% drop from summer 07 valuation.


"we shouldn't get too worried about just 1 auction..."

...Except that its not the only 1?

In fact selling 5 out of 30 odd on the night, then a few more close to reserve after the event, seems pretty good compared to some stories being bandied around.

ad9898_3

Good news.:D

dealornodeal_3

Cannon_Fodder wrote: »

http://news.bbc.co.uk/1/hi/england/7703295.stm

House featured, suffered a 30% drop from summer 07 valuation.


"we shouldn't get too worried about just 1 auction..."

...Except that its not the only 1?

In fact selling 5 out of 30 odd on the night, then a few more close to reserve after the event, seems pretty good compared to some stories being bandied around.

That should trickle down to the EAs, and give them a wake up call. Which they are badly in need of in our area:j

chrisandanne

http://www.rightmove.co.uk/viewdetails-23693198.rsp?pa_n=1&tr_t=buy&mam_disp=tru

They are getting cheaper and cheaper....this ones up for auction but same price with the Halifax Esatate Agents...lovely.

I don't know if Estate Agents want to sell anything, I e mailed Whitegates about viewing a semi last week and they've never got back to me, I went and looked at the outside and through the windows. It's described as tastefully decorated....someone at Whitegates must be very easily pleased, I would describe it as 'In need of complete renovation' and about £30k overpriced....they're having a laugh..... or a breakdown !. A x

Generali

Via SirXYZ at the fool.co.uk website:

(link)

The poor state of the property market in Northamptonshire was laid bare at a house auction last night where only four out of 28 "half-price" homes in the county were sold.
Property Auction Club arranged the auction at the Hilton hotel in Collingtree, Northampton, by contacting estate agents to bring forward homes they were finding it difficult to find buyers for or had been asked to sell quickly.

But despite most of the guide prices being about half the value of the homes in July 2007, bidders sat firmly on their paddles and refused to be tempted into bidding even at such discounted prices.

Shaynan Patel, assistant manager of Property Auction Club said: "It's not good. These prices are down by half from what they were last summer. To most people selling a house, auction is the last resort for them so what is the next step?

"They are already down by 50 per cent; do they then go to 75 per cent?

Realy

But would it not be the time to buy at auction (proving there is no reserve)
When lending is less constricted they are going to go for more.
Auctions are an extream view of the housing markets. I booms eveything sells for stupid price. In bust they don't sell.
But any one with cash could buy a house outright at the moment.

Generali

Realy wrote: »

But would it not be the time to buy at auction (proving there is no reserve)
When lending is less constricted they are going to go for more.
Auctions are an extream view of the housing markets. I booms eveything sells for stupid price. In bust they don't sell.
But any one with cash could buy a house outright at the moment.

The problem that this story highlights is that there is still a standoff despite a year's worth of articles in the press about falling house prices and economic doom 'n'gloom - sellers won't cut prices to those which buyers are willing and/or able to pay. As a result they can't/won't sell and buyers won't/can't buy.

An interesting theory on The Fool (from someone who seems very clever but a bit mad it should be said) is that places like Northants are moving from being in the London commuter zone to out of it and so are facing massive drops as values are completely rerated.

hethmar

They are amazing prices but they also seem to be in the areas you wouldnt want to buy anyway. Still a new flat in Salford guideprice of £50k or whatever must be a bargain for someone.

Generali

hethmar wrote: »

They are amazing prices but they also seem to be in the areas you wouldnt want to buy anyway. Still a new flat in Salford guideprice of £50k or whatever must be a bargain for someone.

Perhaps. Houses used to sell for 2 or 3% of that price in some parts of Northern England 8-10 years ago. In some areas even less than that.

hethmar

Really? Ive lived in the (very) expensive south east - so out of touch with other areas.

dopester

Come to live in Salford if you like it so much.

http://www.guardian.co.uk/world/2008/jan/04/race.ukcrime

Back in the early 90s I saw flats in Salford and Stretford sell for £1500 to £1800 at auction. I don't hold out much hope for Salford and fancy values of apartments during a prolonged downturn despite all the regeneration money and new-blocks of apartments that have been built.