House prices at April 2004 levels? where I cannot find them

Cannon_Fodder

Dan: wrote: »

Who would want to sell now unless they have to?

How many threads have we had on "define the have to's" ?

Not just repos sell;

- job loss/offer can force relocation;
- relationship breakdown doesn't always get as severe as http://www.guardian.co.uk/money/2009/feb/28/divorce-mortgages-shared-property-assets but you still may need to sell
- death;
- someone waiting for their dream house discovers its coming to market
- child-birth necessitates an extra bedroom.
- can't bother to think of the others


As has been said, this price crash is great because it will bring the gaps between types of properties closer together - if the maths works, your mortgage lender is supportive, you may even end up making a mint compared to when prices where soaring away.

Although house sales levels are 40% or so down, that still means 60% are going ahead "life as usual"...

Not everyone is concerned with every penny of profit or loss, they just want to move, can afford it and get on with it.

I did it myself, late-90s.

Cannon_Fodder

Dan: wrote: »

But if you don't agree with their valuation, then you can have an independent valuation done which they will normally accept.

Even post-credit crunch? Fair play if you can get a different valuation past them. Are valuers putting their relationships will large lenders second to individual clients demands?

But its not solely about valuations, its about "policy".

You might think your property defies the -10% logic, so try for a 95% mortgage.

If the lender's policy is not to entertain LTVs higher than 90% you are going to need one helluva positive re-valuation...

PasturesNew

cookie_monster wrote: »

Not many price reductions around the Birmingham area, the only falls are with flats.

12% of the last 100 properties sold in Birmingham were sold at a loss (as per data to 30/01/09 from land registry).

Specifically, numbers 14, 25, 26, 28, 37 47, 51, 58, 66, 67, 81, 85

Just a random sample from: http://www.houseprices.co.uk/e.php?q=birmingham+midlands&n=100

Note: the numbered items will change in the next 48 hours when the new data comes through from LR

Specifically, number 58 sold for less than the '03 price: http://www.houseprices.co.uk/e.php?q=41%2C+Starbank+Road%2C+Small+Heath%2C+Birmingham%2C+West+Midlands%2C+B10+9LE&n=100

Dan:_4

Cannon_Fodder wrote: »

Not just repos sell;

- job loss/offer can force relocation;
- relationship breakdown doesn't always get as severe as http://www.guardian.co.uk/money/2009/feb/28/divorce-mortgages-shared-property-assets but you still may need to sell
- death;
- someone waiting for their dream house discovers its coming to market
- child-birth necessitates an extra bedroom.
- can't bother to think of the others

I didn't mean just repos - If none of the above applies people will not want to sell in the current climate. Ive heard it time and time again "we are thinking of selling when the market picks up"

Cannon_Fodder wrote: »

As has been said, this price crash is great because it will bring the gaps between types of properties closer together - if the maths works, your mortgage lender is supportive, you may even end up making a mint compared to when prices where soaring away.

Agreed.

Cannon_Fodder wrote: »

Although house sales levels are 40% or so down, that still means 60% are going ahead "life as usual"...

Not everyone is concerned with every penny of profit or loss, they just want to move, can afford it and get on with it.

I agree with this too and it can work for FTBers too. i.e. I can afford what I want so I dont care if its not at the bottom.

Cleaver

will-he-payitoff wrote: »

According to the Guardian house prices have dropped to the same level as April 2004, don't know where these figures are from. I am house hunting at the moment and the only properties that seem to have dropped are flats and ex council houses. Is this the same all over the country?

I picked up a two bed terrace last week for the Sep 1973 levels. In addition, I have snapped up a Ford Mondeo for May 1956 prices and my food shop in Sainsbury's last week was twenty two shillings and a guinea, which I believe is the same as Jan 1978.

You must just not be looking hard enough.

Davesnave

I've said this elsewhere, but two houses on my 'interesting' Rightmove list, fell by £50k in the last two weeks. That is significant, as neither is a lemon.

In the same areas, there are also comparable properties which haven't dropped a penny since 2007, plus many more which have had the odd £10k - £20k grudgingly knocked off. The majority of these won't be going anywhere anytime soon, but a few may strike lucky.

I don't blame the average seller with a £500k property taking time to realise that he/she is likely to get only £400k for it. After all, how long would it take most people to save £100k? However, when they do wake up and smell the coffee, I'll be here with my £400k. (£350k if they're really slow!)

lostinrates

Davesnave wrote: »

I've said this elsewhere, but two houses on my 'interesting' Rightmove list, fell by £50k in the last two weeks. That is significant, as neither is a lemon.

In the same areas, there are also comparable properties which haven't dropped a penny since 2007, plus many more which have had the odd £10k - £20k grudgingly knocked off. The majority of these won't be going anywhere anytime soon, but a few may strike lucky.

I don't blame the average seller with a £500k property taking time to realise that he/she is likely to get only £400k for it. After all, how long would it take most people to save £100k? However, when they do wake up and smell the coffee, I'll be here with my £400k. (£350k if they're really slow!)

I have an anecdotal of a reduction to asking price of offers over £695k from an asking price of £850k ish. The seller is an acquaitance of my family. Its a decent drop % wise.

themanbearpig

Dan: wrote: »

People need to understand that every county, town, street and house is unique in price. National averages are completely pointless.

Actually no, they arn't competely useless. If you have a look at the distribution of the price falls around the country, the standard deviation is pretty low.
I don't believe there are any areas that fall massively out of the average.
What people need to understand is that averages are just that, averages. But if you look at the statistics a little more carefully, every region of the UK has lost around 15%.

skap7309

Dan: wrote: »

People need to understand that every county, town, street and house is unique in price. National averages are completely pointless.

Not really Dan. Also where is this national average coming from? The Shetland Isles? Reason is it seems every single other area of the UK is not seeing drops. You only have to search these forums on a daily basis to see no-one seems to be witnessing anything like what is reported.

A quick check on Home.co.uk for my area shows sellers have dropped their prices 7% in the last 12 months. The same search using LR figures (the only one i really take notice of) shows Cambridgeshire has dropped 13.9% over the same period. Very similar figures can be found using Rightmove / Haliwide etc combinations.

Another point to make is the whole average aspect. Half will be below average but 50% will be above average to balance it out and i have not seen a single post stating haw massive house prices are falling in their particular area.

Stats out this week showed the number of house transactions fell to a 50 year low. Given the population explosion & houses available compared to 1959 that is some shocking statistic. It all adds up to housing STILL being grossly overpriced and only a massive and lengthy correction will straighten it out as 10 x income multiples / 125% mortgages will not return for decades.

All this proves sellers are being far too unrealistic across the country and if that is not enough evidence then i do not know what is.

dopester

Asking prices might not be at 2004 levels, but the transactions going through are being recorded at such prices, according to Halifax and Nationwide.

After all, they are amongst the biggest lenders sorting out the few mortgages for people who are buying, so should really know.

You can stand back and present me all asking-prices you see on Rightmove as evidence all is dandy, but you might as well add a few more 00000s on to many of them.

They are overpriced and will not sell at what they are asking. With asking-prices, you can negotiate and put in lower offers you realise?