'Stagnation' hits property market

IveSeenTheLight

One in five properties in some areas of the UK has been on the market for the whole of 2008, data suggests.

On average across the country, 5% of homes for sale have remained unsold since the beginning of the year, according to property website Globrix.
The picture of a stagnated market is most critical in the north of England.
Prices have been falling throughout the year and banks have been squeezing the availability of mortgages, notably to those unable to offer a large deposit.

'Market gridlock'
The group has listed the areas where sellers have had most difficulty shifting their properties.


Rochdale in Lancashire topped the chart, with 26% of homes for sale remaining on the market for the whole of 2008, although this is from a relatively small stock.

Currently 204 homes have been on the market in the town throughout 2008.
Next were Aberystwyth (23%) and Swanage in Dorset (20%), with Manchester being the first major city on the list, ranked at ninth (13%) and with 1,098 homes on the market for the entire year.

Globrix suggested that this was the result of an "over-supply" of newly-built apartment blocks.

"The gridlock in the market has been a result of the banks' reluctance to lend and an unwillingness by sellers to lower their asking prices to more realistic levels," said chief executive Daniel Lee.

"If rates are cut further and mortgage products become more competitive — and there are signs that this is happening — then who knows?
"Property prices are now very tempting and I am sure many buyers, having delayed for so long, will be closer to making their move. The next few months could determine the shape of the next few years."

http://news.bbc.co.uk/2/hi/business/7803086.stm

RomansProperties

I have had a property on the market for the whole of 2008 and personally i think it will remain on the market for the whole of 2009.
I have dropped the price once by £15k which is only 7% of the asking price but i dont need to sell it, its only a case of if it makes £215k i will sell it.
I even think if i take it off the market the estate agent will want his sales fees, not the full amount but some proportion towards advertising costs so it might as well stay on the market.
This is further adding to the gridlock in the market.

ad9898_3

IveSeenTheLight wrote: »

"Property prices are now very tempting and I am sure many buyers, having delayed for so long, will be closer to making their move. The next few months could determine the shape of the next few years."

As a FTB, I don't find property prices the least bit tempting, in fact with the economy certain to get worse over the next 12 months, property prices to continue to reduce and lending further restricted by the banks, I would say at this point, I have never been further from 'being tempted, and I'm sure I'm not alone.

And as a FTB, I am the critical link in a chain of anything upto 6,7 or more property sales. Sorry it's not going to happen, another 15-20% off now is an absolute certainty, probably more. That amount set to come off the price of an average house is 2-3x what I could save in my savings account over the same period, unless you are forced by personal circumstances, buying now would be madness.

IveSeenTheLight

ad9898 wrote: »

Sorry it's not going to happen, another 15-20% off now is an absolute certainty, probably more. That amount set to come off the price of an average house is 2-3x what I could save in my savings account over the same period, unless you are forced by personal circumstances, buying now would be madness.

It's quite possible you could see prices drop that much in your area.
I posted on another thread a link showing that in some areas in the last quarter, prices have increased

Seems there are a number of areas on the rise
http://news.bbc.co.uk/2/shared/spl/h...l/houses.stm?q

ad9898_3

If I'm completely honest, the issue that concerns me more than house prices or interest rates going up or down, is employment. Like many others, I want zero debt around my neck at the moment (which I'm lucky to have), good times can turn to bad times very quickly, I'm just concentrating on saving as much as I can while the economy is heading south, everything else is out of my hands.

EliteHeat

I think part of the problem is so-called sellers having their property on the market with no intention of reflecting national decreases in property prices because they don’t really need to sell. This is not only extremely irritating for buyers, but surely can’t be good for estate agents either.

Even the most reclusive genuine buyer cannot be unaware of the current trend of house prices and the general sentiment towards lending and debt. You would have to be a serious nutter to pay the prices some sellers are still demanding.

If I were an agent, I would be writing to each stagnant seller on my books explaining the need for owners to market their properties at more realistic prices. If they refused, then I would respectfully decline to spend further money, time and effort marketing their property.

If all agents acted in unison it follows that prices would fall to a level were value and affordability became self evident and the market would start to move again.

I am in the fortunate position of being able and willing to buy a property outright. I want to buy right now, but I am not going to throw my money away on a ludicrously overpriced property. I will though, recognise value for money when I see it.

Kick the timewasters out I say.

besonders1

I am a FTB and and no way am I attracted to the very few reduced properties that are for sale. The prices don't seem to be much different from last year. I have seen reduction like 1k off a 92K home which most people probably got for 42K in the year 2000 anyway.
I agree with debt, it is better to rent as if I lost my job, I would not need to worry about being reprocessed and being chased for the balance creating scars on my credit rating. I am in no hurry to buy unless the prices come right down to late 1990s, 2001 etc.

I know that if I did not buy now, the prices would come down 15% but if I did buy now I, bet the prices would comes down by 65%, just my luck!

LydiaJ

besonders1 wrote: »

I am a FTB and and no way am I attracted to the very few reduced properties that are for sale. The prices don't seem to be much different from last year.

That's how I feel too.

spuds_2

I think stagnation is exactly the right word. Only those who desperately need to sell are reducing their price significantly near us. I don't see the prices of houses I would like to buy falling. FTB's either can't get a mortgage because they now need a big deposit or are waiting for prices to fall further.

I think there will be more significant falls, especially of new-build town centre flats, but most people will just stay put until they see the prices of others coming down first. I don't see any incentive for FTB's to buy just now unless they see a house they love.

edited for spelling. Whoops.

luvpump

ad9898 wrote: »

If I'm completely honest, the issue that concerns me more than house prices or interest rates going up or down, is employment. Like many others, I want zero debt around my neck at the moment (which I'm lucky to have), good times can turn to bad times very quickly, I'm just concentrating on saving as much as I can while the economy is heading south, everything else is out of my hands.

My thoughts too, I had a good 2008, but if 2009 turns Ugly, which i suspect it will, Many of us could become victims also, so I am saving as much as I possibly can at the moment, just in-case ..

besonders1

A agree, maybe next year we all may be more concerned with our jobs rather than buying a house, even if they do fall considerably unless you could buy one outright with cash. I wouldn't like to think I had a mortgage to pay but had no income.