Auction prices plummeting?

dopester

This house last Summer was worth around £340,000. Guide price last night £250,000. Sold today at £240,000. About 30% down on last summer.

The initial worth at peak supposedly = £340,000

I wish I could remember that quote... "values are an opinion whereas...?"

Anyway £340,000 for a standard 4 bed house, not in any fancy location, with brown curtains and needing work done to it.

Even £240,000 ! That is nearly quarter of a million pounds. The system, functioning so much on Government debt created liquidity, can't support these values of imaginary worth. Twilight Zone.

I'll take a guess that this was the house featured in the BBC's news article - although no pics of inside..

http://www.rightmove.co.uk/viewdetails-22817141.rsp?pa_n=1&tr_t=buy&mam_disp=true

scousethife

Generali wrote: »

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.

Exactly how much horse power does a tow truck need to pull a city out of a commuter belt?

Did they get the Stig to drive it?

lynzpower

POTENTIAL investors last night described a property auction held by one of Wales’ largest estate agents as “embarrassing” after it failed to sell any properties.

http://www.walesonline.co.uk/news/wales-news/2008/10/30/embarrassing-auction-a-flop-say-property-investors-91466-22148897/

carolt

Northants is a loong commute. :eek:

Wouldn't fancy it.

How can they call that 'commuter belt'?

beingjdc

It's an hour to Euston. People do a lot more than that! I know someone who commutes to Whitehall from Norwich. The real problem is the price of the tickets.

Gorgeous_George

Generali wrote: »

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.

There was a lot of terraced homes that were very old and in need of demolition. Most have been demolished.

It is extremely unlikely that today's houses will sell for silly money. Investors and BTLers will snap up a bargain long before they hit £20K. I'm waiting for a 3 or 4 bedroom property being available for less than £50K - perhaps with £5K of work being needed on top of that and a rent of £5K per annum.

GG

Generali

Gorgeous_George wrote: »

There was a lot of terraced homes that were very old and in need of demolition. Most have been demolished.

It is extremely unlikely that today's houses will sell for silly money. Investors and BTLers will snap up a bargain long before they hit £20K. I'm waiting for a 3 or 4 bedroom property being available for less than £50K - perhaps with £5K of work being needed on top of that and a rent of £5K per annum.

GG

The thing is, if you have a house in a street that nobody wants to live in so it's tough/impossible to rent it and capital values are falling too then how much is that house worth? Pretty much nothing IMO.

Gorgeous_George

Generali wrote: »

The thing is, if you have a house in a street that nobody wants to live in so it's tough/impossible to rent it and capital values are falling too then how much is that house worth? Pretty much nothing IMO.

Good point. I know some towns where most people wouldn't choose to live - down South as well as up North.

What is worth the least? A house in a street that nobody wants to live in or a house that is in a great spot but floods most years? If I couldn't sell for more than a couple of grand, I'd sooner knock it down. I just don't think that there are that many nasty houses anymore.

GG

Generali

Gorgeous_George wrote: »

Good point. I know some towns where most people wouldn't choose to live - down South as well as up North.

What is worth the least? A house in a street that nobody wants to live in or a house that is in a great spot but floods most years? If I couldn't sell for more than a couple of grand, I'd sooner knock it down. I just don't think that there are that many nasty houses anymore.

GG

Whereas (I believe at least) in the 90s most if not all the £1,000 houses were in the North, perhaps at least some will be in the least loved parts of the South East this time.

As you say, in areas that flood and also have a pretty rotten economy. Bits of North Kent spring to mind.

Most of the economy of the South East must be pretty dependant on media and finance. Finance is in all sorts of trouble (and don't I know it!) and spending on the production of TV/film/advertising/websites etc must pretty closely track spending on marketing which in turn tracks the general level of economic activity pretty closely.

neverdespairgirl

Gorgeous_George wrote: »

Investors and BTLers will snap up a bargain long before they hit £20K.

The verb, "to snap up" is massively over-used in relation to houses and flats. Even the speediest of buying takes 3-4 weeks, hardly snapping anything.