Asking prices just havn't moved !?!?

neverdespairgirl

hethmar wrote: »

All beautiful, but not the norm NDG - these are dream houses/lottery wins for most people, not your common or garden buyer.

Although, I didnt like the mock tudor one! The Georgian one is right on a main road so Id not go for that either - the oast house may be ok but miles from shops

I agree, but they are all "nice" don't you think?

They may not all be to your taste, but they are all pretty special houses, I reckon.

lostinrates

neverdespairgirl wrote: »

I agree, but they are all "nice" don't you think?

They may not all be to your taste, but they are all pretty special houses, I reckon.

I agree with the point you are making. 'Nice houses aren't going to drop in price' is something thats been posted on this board a few times and your links suggest otherwise. The first significant falls I saw in this area were on properties priced (originally) over a million not, TBH, I'm not sure there is a pattrn in my area, asking prices seem pulled out of a hat rather then arefully calculated and falls are random. LOTS of stickers in the 'nice' but not super-nice houses, sticking both price and on market, with more changes above and below them in the 'quality', but thats from very random observation. I anm noticing the sorts of places I'm looking at, less nice but detahed and a bit of land are in many cases bing priced more realistically.

Davesnave

SunnySusie wrote: »

It took 10 years to get here, it won't be undone over night. I
People who have spent £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!

I can afford it, and then some! Mind you, I will make it back again next year, or the year after. It's only a temporary, paper loss.
In a rental I can sit there, vulture-like, (see other thread) and wait for the good deals. When they come, I will not have a house around my neck like an albatross. (This is turning very ornithological!)

You mention £50k, but that's the exact amount a property I was keen on fell by, just after I lost my second buyer. They were old people who'd been 5 decades in the place, but a brand new bungalow awaited them. Someone had a good deal, because these octogenarians didn't want to wait. For a multitude of reasons, there will be thousands more like them. Life isn't tidy.

Of course it is a hassle going into rented, because moving twice is a whole heap of no fun. However, it's a hassle finding something you really like, then losing it, or paying more than you need to for it.

We agree that the trend is down, but I'm not convinced that it is, or will be that slow. Perhaps we're all just a little impatient.

cranezoe

it is just a paper loss. If I can keep it relative I will move, someone will have my house for a low offer and I will just be paying the same difference I would always have planned to. If I cant keep it relative, I wont be going, simple

chucky

lostinrates wrote: »

I agree with the point you are making. 'Nice houses aren't going to drop in price' is something thats been posted on this board a few times and your links suggest otherwise.

i don't agree with the statement 'Nice houses aren't going to drop in price'

but i agree more with this statement more 'Nice houses aren't going to drop in price as much as less nice properties'

pickles110564

mean_momma wrote: »

Any more 'pros'?

Better check out Amsterdam

lostinrates

chucky wrote: »

i don't agree with the statement 'Nice houses aren't going to drop in price'

but i agree more with this statement more 'Nice houses aren't going to drop in price as much as less nice properties'

I think also they remain more saleable: I'm mor likely to buy in this market if its something I really want, not just somthing that will surfice.

Max_Headroom_3

skap7309 wrote: »

Have you ever heard of gazumping? It was rife during HPI so why is it wrong/different this time.

Thing is momma after watching Newsnight last night 'normality' may never return. Their words not mine.

I think Newnights assertion that "normality" may never return is quite wrong and sums up why house prices are so slow to slide (the subject of this thread).

In fact normality has returned, it's the abnormality of the last 5-10 years that may never return.

Until people finally understand this en masse, it will be slow to see prices drop as so many people see this as a downward blip (and thus just need to hang on for the blip to end) rather than the last five years credit binge as the (unrepeatable) upward blip.

mean_momma

Max_Headroom wrote: »

I think Newnights assertion that "normality" may never return is quite wrong and sums up why house prices are so slow to slide (the subject of this thread).

In fact normality has returned, it's the abnormality of the last 5-10 years that may never return..

Sorry, neither boom nor bust could be described as normality. Normality will come when the market settles down to some sort of stability.

Max_Headroom_3

timberford wrote: »

The reason prices went up in the first place is because there are more people who want to buy than there are houses for them to buy.

Simple supply and demand. I have a house and you want it, I can charge you a premium.

Actually I disagree with that.

The reason house prices went up was because so much easy and available credit flooded the mortgage market. That allowed people to pay more which allowed people to charge more.

Or to put it another way, houses sell for the most people can afford. Double the amount everyone can afford and you double house prices.

However this happened so quickly that a seconary "booster" fired. As people saw property prices rise so quickly on the back of the easy credit, they started seeing it as an "investment". Which did two things. Firstly it justified paying ever crazier prices as "it'll be dearer next year so better just pile in regardless", and people started buying extra homes to let out in much larger numbers than the few professionals that were doing it before.

And ironically that mopped up more houses on the market creating a false "supply and demand" myth that simply helped self perpetuate the whole damn thing.

So suddenly you had a crazy situation where the more property was sold,. and the more it sold for, the more people wanted it and were prepared to pay more for it.

In other words, "supply and demand" was a self perpetuating myth. It was the lack of supply that actually created the demand!

That whole mindset is gone now. Demand outstripping supply is not the case in reality, it was only the case in the weird parrallel universe that self created on the back of massive credit injection.

A classic bubble situation really, the less there was, the more people wanted it and the more they were willing to pay and the less there was.

That bubble has popped.