Asking prices just havn't moved !?!?

kennyboy66_2

1) Despite what you might read on here, prices don't evenly drop by 15% a year across the country.

2) You probably have a better idea of local market conditions and what you can really afford than anyone on this board.

3) Even when prices stop falling, they are likely to stagnate for several years (I would think at least 3 years and maybe more). At least this gives you a large window of opportunity to buy.

4) Looking for a buying a house is hard, soul destroying and stressful. You need large reserves of stamina and patience.

besonders1

It doesn't really matter what percentage the houses have supposed to drop, it is really up to the seller and most have been brainwashed for 8 years thinking their house is worth millions so I can understand why they won't be too keen on selling it for what it was worth in in 2003. Where I live there are 4 houses up for sale at beyond 2007 peak prices. They are all being offered by children of deceased parents and have been empty for over a year but no one is interested, even in the boom peak they were over-valued so looks like greed got the better of them. I think prices will all drop as once one house drops in value the other would have to follow. The only realistically priced houses are the repossessions which are cropping up almost in every street.

sympatex

kennyboy66 wrote: »

1) Despite what you might read on here, prices don't evenly drop by 15% a year across the country.

2) You probably have a better idea of local market conditions and what you can really afford than anyone on this board.

3) Even when prices stop falling, they are likely to stagnate for several years (I would think at least 3 years and maybe more). At least this gives you a large window of opportunity to buy.

4) Looking for a buying a house is hard, soul destroying and stressful. You need large reserves of stamina and patience.

Kenny, i've found point 4 particularly true. Made even more difficult knowing you're buying an 'asset'(home) that is instantly falling in value (probably). In a rising market, you make a bad decision, move in a year or to no problem. Falling market could be stuck for more like 10.

mean_momma

besonders1 wrote: »

I think prices will all drop as once one house drops in value the other would have to follow. The only realistically priced houses are the repossessions which are cropping up almost in every street.

Repossessions have never been 'realistically' priced. They are priced to sell quickly and to cover the lender's costs. Distress sales may be on a par. Houses that are marketed where sellers are not under pressure woud tend to be more expensive.

Max_Headroom_3

chucky wrote: »

am right in assuming that taking like for like your proeprty has dropped in 'value' less than these new builds in the same amount of time?

Ohh no no, my house hasn't dropped in value at all, that only happens to other peoples houses!

Actually it's a very good question. Whilst they were going up, the price of houses like mine mirrored the new houses all the way up. Now they're coming down, well I've not seen any like mine for that price, but then I didn't see any of them for that price until recently so it might just mean that no one with a house like mine has "got real" yet.

I suspect that my house may be worth a little more, but I doubt it's anything significent.

One interesting thing about the new build estate (and part of my reasoning for this suspicion) is that of course when they were built (and sold for £49K) a lot of young FTB's moved in. I always wondered what the result of so many people of the same age group having kids at similar times would be as you'd end up with a disproportionately large amount of kids of similar age. Well, circa 15 years on the estate is apparently awash on summer nights with troublesome young kids roaming about causing trouble. Not a great place to live for that reason now apparently. I guess in much more established areas the age mix is much greater so whilst not without problems, they tend to be more spread out.

chucky

Max_Headroom wrote: »

Ohh no no, my house hasn't dropped in value at all, that only happens to other peoples houses!

what a coincidence - mine too!!!

Max_Headroom wrote: »

I suspect that my house may be worth a little more, but I doubt it's anything significent.

This was the obsession with many BTLers that they went for new builds maybe due to the ease of getting finance or even the lack of maintenance. i don't know.

personally i would avoid buying a new build as a BTL investment unless it was a very good bargain - something that the guys on this estate didn't obviously do.

SunnySusie

phil_b wrote: »

I know asking prices and sold prices are very different, so hopefully reality will kick-in in one big dollop sometime soon for some fast drops.

It took 10 years to get here, it won't be undone over night. I know people who have been putting their lives on hold since when sites like housepricecrash were first predicting a crash about 5 years ago. It's kinda sad to see them now into their 30s with another 5 years to wait. I hate to say it but this has realistically cost some of my peers the chance of having a family. But at least they'll save a few bob on the house!

The problem is that families in nice big family homes are just staying put - people live longer and they need the space for their grown up kids. All the construction in recent times has been focused on flats and small new builds that no one really wants. People who have spen £200k on a house aren't going to let it go for £150k if they have any choice about it. Who can afford to lose £50k? You? Me? I don't think so!

Give it time. The wider recession will ensure the downward trend continues on its slow path!

sdooley

You can have a family in rented accomodation.

mitchaa

sdooley wrote: »

You can have a family in rented accomodation.

Unsettled when the landlord is forced to sell and you're booted out into the streets.

With bought you obviously have peace of mind that the ball is in your court, not in someone elses.

skap7309

Personally i have changed my tune over the last few weeks. It seems that if prices are not coming down in line with the crash then this gives me far more time to save for a deposit. Looking at mortgages last night as soon as a 40% deposit kicks in the rates plummet. ATM my target deposit gives 37% so i count it as a blessing if the HPC is extended. Judging by seller's inability to read the market conditions this gives me the extra time required as it certainly will not happen as fast as many previously thought.
Take your time sellers, take your time. :rotfl:

Sig soon to be revised!