Asking prices just havn't moved !?!?

neverdespairgirl

kennyboy66 wrote: »

The problem is that the private rental market is highly skewed towards flats and singles / couples with no kids.

Living in a rented flat with a family isn't actually life-ending either, you know!

Cissi

chucky wrote: »

there is also very few that need to sell from looking at the transaction volume of property sales at the moment

Ah, but how long before a significant number can hold out no longer? Eventually some people won't have a choice! Divorce, inheritance, relocation and of course repossession have all been mentioned already as reasons why some sellers will have to bite the bullet. And once that happens, others who only want to sell (as opposed to needing to) will follow suit.

The longer the current stand-off lasts, the bigger the price falls when things finally start moving again (as they will have to in our mobile society).

Cissi

neverdespairgirl wrote: »

That seems to me to be an illustration of the property-owning obsession in the UK. WHy is not buying a house necessarily "putting your life on hold"?

We don't own. OH is 30, I'm 31, we both work in enjoyable fields, and have a 3 year old son. Our lives aren't on hold.

How true! We're in a very similar situation (except that we're a few years older), with 2 young children and we've been very happy in our rented house for the past 3 years. We sold to find a larger family home, and this was available to us for less money overall by renting rather than buying, so what's the problem

mailmannz

besonders1 wrote: »

it is really up to the seller and most have been brainwashed for 8 years thinking their house is worth millions

Of course the flip side is that buyers have been brainwashed in to believing the house isnt worth millions

Mailman

chucky

Cissi wrote: »

Ah, but how long before a significant number can hold out no longer? Eventually some people won't have a choice! Divorce, inheritance, relocation and of course repossession have all been mentioned already as reasons why some sellers will have to bite the bullet. And once that happens, others who only want to sell (as opposed to needing to) will follow suit.

The longer the current stand-off lasts, the bigger the price falls when things finally start moving again (as they will have to in our mobile society).

that's the million dollar question
the next year will be interesting...

i was responding to the current situation where some current asking prices aren't really moving.

StevieJ

Cissi wrote: »

Ah, but how long before a significant number can hold out no longer? Eventually some people won't have a choice! Divorce, inheritance, relocation and of course repossession have all been mentioned already as reasons why some sellers will have to bite the bullet. And once that happens, others who only want to sell (as opposed to needing to) will follow suit.

The longer the current stand-off lasts, the bigger the price falls when things finally start moving again (as they will have to in our mobile society).

In my view most sales are aspirational i.e. moving to a bigger/nicer house. These sales appear to be on the back-burner until the market changes, I see a lot less houses for sale now than there were at the peak , suggests to me NO Rush for sellers. The logical thing is to wait for the market to turn, then sell the house under no pressure and knowing that the aspirational purchase will be a lot cheaper than it was.

Gorgeous_George

!!!!!!? wrote: »

Don't forget the other side of supply/demand, there are relatively few people who need to buy and can't make do with renting for a bit longer. And there seems to be no shortage of rental property right now.

The would-be buyers have by far the stronger hand.

There are a lot of people who could make do with renting forever. I could make do with letting to them forever.

I agree that buyers have the stronger hand but homeowners have the houses. In a credit crunch, cash maybe king but you cannot live in a million pounds. I wonder how much cash people thought they had in the Madoff fund? It is much more difficult to steal a house.

GG

skap7309

I am quite surprised reading peoples posts that coupled with no movement on asking price offers are continuously being rejected. It all goes back to the forced sales argument but stats yesterday showing forced sale prices are down 50%? Wow, still one heck of a long way to go.
Are we going to see in the new year a new price cut exodus from sellers looking to get rid once and for all?

StevieJ

skap7309 wrote: »

I am quite surprised reading peoples posts that coupled with no movement on asking price offers are continuously being rejected. It all goes back to the forced sales argument but stats yesterday showing forced sale prices are down 50%? Wow, still one heck of a long way to go.
Are we going to see in the new year a new price cut exodus from sellers looking to get rid once and for all?

I think you need to differentiate between builders cash flow problems, over priced new build and city centre flats with householders suffering record low rates.

Max_Headroom_3

StevieJ wrote: »

In my view most sales are aspirational i.e. moving to a bigger/nicer house. These sales appear to be on the back-burner until the market changes, I see a lot less houses for sale now than there were at the peak , suggests to me NO Rush for sellers. The logical thing is to wait for the market to turn, then sell the house under no pressure and knowing that the aspirational purchase will be a lot cheaper than it was.

This may be true, but those that won't/don't need/can't afford to sell remove themselves totally from the vendor gene pool.

Others around them that need to sell (divorce/job loss or relocation/death/bankruptcy/whatever) will sell because they have no choice, and they will be setting property market rate.

All very well Mr. NoSale saying "hmmph, I shan't sell for less than £200K" but if Mr & Mrs Divorce have just forced a sale of an identical house next door for £140K and old Mr. OAP over the road passed away and the family got shot for £135K then Mr. NoSales's house is now worth circa £135-£140K, whether he is prepared to sell it for that or not.

So as far as house prices go, those sitting on their hands will have no effect on house values, only those for sale/sold will. They will set market rate.