Sellers on strike

baby_boomer

The Times

"...Rather than accept lower offers, sellers have been withdrawing from the market in droves..."

The nice properties aren't necessarily out there.

"...There are distressed sellers putting their homes on the market, but these are not the properties we want to buy..."

"...the number of sellers taking homes off the market in London rose by 150% in the 12 months to the end of October. Outside the capital, the rate was 132%. New instructions fell by 14% in London and 13% elsewhere.."

Changes to HIPs (more info & no 28 day grace period) will slow the market further in April 2009 - although the government thinks the opposite :rotfl:

"...So, with the market already all but closed for the year, the question is, what will happen in the spring? Who will blink first – buyers or sellers? “The market won’t improve after Christmas,” says Jonathan Bramwell, head of country for the buying agency Prime Purchase. “There is going to be a downturn for another 12 to 24 months. Some sellers will be able to see out the downturn. Others are just ignoring the situation......"

These reluctant ostriches are in deep denial and the continuing decline will hit them big time. Even Knight Frank thinks there's another 15% to go.

The Observer picks up on the reverse side of this coin

Loads of top quality homes being rented out cheaply . So, no rush to buy. Maybe rent out a house you fancy, so that you really get to know it, before putting in a much cheaper offer on the same house .

dopester

Sooner or later, the house next-door, across the road, up the street, will have to be sold for one reason or another.

By my way of thinking, if they slashed their asking price 50% now to sell, and went in to low-cost rental / caravan / back to parents.... they'd be hugely better off than sitting back and waiting for the crash to take play out fully.

Doesn't matter to me. It won't slow the crash. Let them wait for their "recovery" back to what they "think its worth".

When the market turns down, the dynamic goes into reverse. Only a very few owners of a collapsing financial asset trade it for money at 90 percent of peak value. Some others may get out at 80 percent, 50 percent or 30 percent of peak value. In each case, sellers are simply transforming the remaining future value losses to someone else. In a bear market, the vast, vast majority does nothing and gets stuck holding assets with low or non-existent valuations.

dopester

Even though she is probably STR by accident, having sold in April for maybe a solid price - she seems totally unsatisfied to what a superb position this has put them in, provided she is patient.

“I have viewed more than 40 houses and seen everything there is to see online,” says Kats, 29, who owns Memento, a company that sources bespoke corporate gifts.

The only Memento corporate gifts company I can find is in Australia. Her name doesn't lead anywhere either. I'm not sure whether she should be planning for tougher times ahead, although there can be quite some margin in quality luxury stuff at high prices, even in recession/depression.

luvpump

I am sure Sellers will believe the likes of Darling when he says that the Economy will begin to recover second half of next year, this from a guy who said we would not Enter recession 6 months ago... It Total BS !!, the Coming Recession will be long & hard ... That reality will mean a lot of sellers will HAVE to accept the new reality at some point ..

amcluesent

>the likes of Darling<

Do be fair, he did let slip this would be the worst economic crisis for 60 years.

SGE1

luvpump wrote: »

he says that the Economy will begin to recover second half of next year

I think he's right. Though note, he says begin to recover, not that the recession will be over. Say, in Q1 and Q2 2009, the economy shrinks by 0.5%, but in Q3, it shrinks by inly 0.4%, and in Q4, by 0.3% - that's a recovery, but it doesn't mean the recession is over.

So I don't think Darling is being as cheery or delusional as you're implying.

luvpump

http://www.ft.com/cms/s/dafae2dc-4933-11dd-9a5f-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fdafae2dc-4933-11dd-9a5f-000077b07658.html%3Fnclick_check%3D1&_i_referer=&nclick_check=1

I take your point Sge , but It would have to be a very Liberal interpretation of the term "Recovery", I.e the Economy is still contracting but not quite as rapidly ..

PasturesNew

dopester wrote: »

Even though she is probably STR by accident, having sold in April for maybe a solid price - she seems totally unsatisfied to what a superb position this has put them in, provided she is patient.



The only Memento corporate gifts company I can find is in Australia. Her name doesn't lead anywhere either. I'm not sure whether she should be planning for tougher times ahead, although there can be quite some margin in quality luxury stuff at high prices, even in recession/depression.

I saw a lot of companies like this in Cornwall. Posh people doing posh services to posh clients, without any formal company setup and no website. Completely off the radar, working entirely in old ways, such as magazine advertising and hanging out at chambers of commerce and organising lunches. Also to be seen at things like tourism award ceremonies.

The companies are built on good tailoring and contacts

olly300

dopester wrote: »

Sooner or later, the house next-door, across the road, up the street, will have to be sold for one reason or another.

1. Probate

The original assert was not worked for by those relatives so any money they get is a gain.

2. To avoid reprocess ion

However if the bank/building society who actually owns the house because they have the mortgage on it refuses to let you sell then there is nothing you can do

dopester wrote: »

By my way of thinking, if they slashed their asking price 50% now to sell, and went in to low-cost rental / caravan / back to parents.... they'd be hugely better off than sitting back and waiting for the crash to take play out fully.

Doesn't matter to me. It won't slow the crash. Let them wait for their "recovery" back to what they "think its worth".

I know people who have owned their house since the 60's, 70's and 80's if they decide to sell up and move to an equivalent property elsewhere as long as they can find a buyer for their house then the prices don't really matter to them. (The only person I know who wanted to do this couldn't get an agreement with their prospective seller so pulled out.)

bo_drinker

We are waiting to buy ( sold in Sept and waiting to buy the "right" one. We are in temp accom waiting like vultures) but they are not out there at present. Who knows what will happen

Kool_Kool

Ive been saving for years for a deposit and with this crunch thing and tumbling house prices I hope to buy a place for myself and dd soon, but I know that the best properties are not out for sale, but then again if I wait the prices may start going up again, cant win can I.