Everyone says house prices are dropping like a stone but are they ??

Doozergirl

It's fair to say that prices have dropped but I don't see much difference in asking prices - the ones I see that have dropped from prices that might have been sensible 18 months ago are the only ones selling. A 10% drop seems to be enough to see it sell.

The ones with the biggest drops on my property bee locally are those that were ridiculously price in the first place, have been on the market for long time, are still on the market despite those drops - still have relatively dubious asking prices. They're also mostly over 500,000.

There's a house by ours that we sold three years ago. At the time my house, without the tiniest shadow of a doubt was better. Very similar sizes ours had been completely restored and had a massive garden. That house was on for 13% more than we sold for and was eventually taken from the market. Three years later, in this market and it was back on at the same price, with now a 25k drop. It still needs about 40k spending on it to bring it out of the dark ages. Some people that viewed this bloke's house said he was boasting how his house was in Band E. He must have been overpaying on his council tax for years because he was proud of a stupid banding!

There's another they've been trying to sell on and of for the same period of time, better presented and it was on for a massive 40% more than ours - still priced ridiculously, even after not selling for years - why on earth do these people think they will sell now? Honestly, they just embarrass themselves by being proud of just how expensive their houses are evidently not.

Doozergirl

nudda wrote: »

Just did a quick calculation. 30% ?????!! ???!! Are you guys sure - because a 400k house would then cost only 280k. Am I interpreting this correctly ?

The people on this board are real people like you see in the street. There aren't any demi-gods here. It's all opinion, regardless of how well it might be worded.

Each house in each area is individual. There is not one property market, there are countless. If you offer 30% less than everything you can very easily end up buying something that was and is still overpriced, or really insult someone who is priced to sell. You have to take every house on it's merits and offer accordingly. Yes, they've dropped, some places more than others but you won't get the best deal simply by knocking random figures off. And be very prepared for vendors that will disagree vehemently with sweeping valuations like that. I've seen people here that are surprised that vendors don't take very low offers and even when vendors have dropped considerably, the advice given is to offer again knocking another 10 or 15% off. It's the viewpoint of someone who isn't out in the marketplace looking to buy.

Go right through rightmove for those areas, set yourself up with property bee and look for the houses that are SSTC and try to use those to measure against houses you are looking at. Once you've made offers, a mortgage valuation will very quickly tell you if they think you're paying too much as well.

nudda

You are saying a 10% drop is enough to see a property go but others are saying this is not enough. And well, the house prices dropped nearly 20% by Dec 08 so surely a 10% drop would not increases chances of selling too much ??

SailorSam

I moved almost 2 yrs ago, at the weekend i was checking the prices on my old estate and they were a bit more than i had sold for. Of course that's a asking price, they may not be selling, but on the face of it no falls here.

nudda

Doosegirl : Some interesting points here.

how can you see which property is actually up for sale on rightmove (without callign the EA) so that we can check prices on nethouseprices etc ? IS there a way ?

SSTC - what does this stand for ?

Mortgage valuation - could you elaborate on this please ?

Thanks

robin_banks

nudda wrote: »

I just cant see it. I'm looking at rightmove, nethouseprices, property snake ... and cannot see prices falling like a stone! Can someone please give me evidence of this happening ?

More to do with people's mindset than anything else, we simply have to accept that the value of houses can go down as well as up.

Could it be its because of the area I am in (Berkshre) but then I thought all properties everywhere were being affected (minus central London ?).

Berkshire will be affected like anywhere else.

Entertainer

nudda wrote: »

Doosegirl : Some interesting points here.

how can you see which property is actually up for sale on rightmove (without callign the EA) so that we can check prices on nethouseprices etc ? IS there a way ?

SSTC - what does this stand for ?

Mortgage valuation - could you elaborate on this please ?

Thanks

Sold subject to contract.

nudda

Thanks Entertainer
what are the alternativvs to SSTC ? i.e is three anything that doesnt need a contract etc

Doozergirl

nudda wrote: »

You are saying a 10% drop is enough to see a property go but others are saying this is not enough. And well, the house prices dropped nearly 20% by Dec 08 so surely a 10% drop would not increases chances of selling too much ??

Like I said, there are different markets. It might be 10% here but 40% on a new build flat in Birmingham.

In one street, a poky little house that would have sold for a good price 18 months ago because there was nothing else available might have to drop considerably to get a sale now because people are more choosy. When the best house in the street comes up, it might fetch the same as it would 18 months ago because it's so unique. There is no rhyme or reason. Averages are averages.

When London prices were going through the roof again through 2006, the market where I am was steady, it has been for years. I know people say 'not here' but I don't think it will be as bad as some places because the rise hasn't been so steep either.

zaphod_beeblebrox_2

Take a look at the last bust in 1989, it took 7 years just to level off and a further 5 years to reach the values of '89