Fewer properties changing hands than in the last 50 years.

skap7309

Talk about a stand off.

http://www.telegraph.co.uk/finance/economics/4800418/Property-freeze-is-worst-since-1950s.html

Record low since 1959. Given the much higher level of homes and population now that is some statistic.

IveSeenTheLight

skap7309 wrote: »

Talk about a stand off.

http://www.telegraph.co.uk/finance/economics/4800418/Property-freeze-is-worst-since-1950s.html

Record low since 1959. Given the much higher level of homes and population now that is some statistic.

So that would be 50 years then

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skap7309 wrote: »

Talk about a stand off.

http://www.telegraph.co.uk/finance/economics/4800418/Property-freeze-is-worst-since-1950s.html

Record low since 1959. Given the much higher level of homes and population now that is some statistic.

I'm getting the feeling that this time it's going to drag out much longer, I think many people just don't have the equity in their houses that they should have because of mewing, and therefore can't reduce, they will end up staying put, or if they are in difficulty, then repossessed.

I've said before, I have a friend or bought a house in '88 for 24k he is still there and owes 89k now. I know that's probably an extreme example, but mewing has been rife in the last decade, it's even, perversely been adding to economic growth, thats going to take a long time to unwind.

amcluesent

Death, Divorce and Debt can't be held off indefinitely, that will trigger sales (maybe distress sales at auction...)

skap7309

IveSeenTheLight wrote: »

So that would be 50 years then

lol my bad, had not been awake very long!

Really2

amcluesent wrote: »

Death, Divorce and Debt can't be held off indefinitely, that will trigger sales (maybe distress sales at auction...)

Distressed are selling from what I hear. (well repos anyway) some EA's are selling houses at 50% below peak.
Belive it or not a lot of repos are not going to auction because they are being purhased before through EA's (Auctions are a last expensive resort for lenders).
From what I here Repo prices are at the bottom now as their is competition for buying houses with 50% off.

IveSeenTheLight

skap7309 wrote: »

lol my bad, had not been awake very long!

LOL its not a problem.
I wonder if the figure will get even lower.
With mortgage approvals up 4% to 23,000 in January, we could see a lower figure in months to come.

This is the sad thing. Even with property on average dropping 16-20% from peak peopme buying homes have dropped.

Arguably, they are already more affordable than peak, so affordability is not the reason. It must be down to cautiousness from potential buyers and cautiousness from banks tightening their lending criteria.

There is an argument to say that it is harder to get a property now than when houses were at their peak.

skap7309

IveSeenTheLight wrote: »

There is an argument to say that it is harder to get a property now than when houses were at their peak.

Exactly that - many sellers are holding out hoping to see a quick recovery and buyers simply do not have access to the crazy lending of mortgages of 18 months ago.

IveSeenTheLight

skap7309 wrote: »

Exactly that - many sellers are holding out hoping to see a quick recovery and buyers simply do not have access to the crazy lending of mortgages of 18 months ago.

Well, most potential sellers do not have to sell although there will be some.
If they do not have to sell, then they may believe that they will wait until the market turns.
When that market turns is so subjective that no-one really knows

There are reports that FTB's have started to return to the market.
We have seen the fastest drop in recorded times and there is nothing to say that the stabalisation and recovery would also be expedited.

Naturally someone who bought many years ago can afford to drop prices more, but those that bought in the last 2-3 years may not have that option.

It could be a simple choice of: -

1) Sell at a loss and move on
2) Decide not to sell and stay put until the market recovers

It would seem there are a lot of option 2's about