Buy! Buy! Buy!

amcluesent

"For buyers, it's finally back to the good old days. After months of famine, houses are trickling onto the market and tales abound of dramatically reduced asking prices. Price cuts of about 25 per cent are seeing a resurgence in London house sales, which sends the strongest signal yet — the buyers' market is back.

Some vendors report dozens of viewings and multiple bids, once they have reduced by on average 25 per cent from the peak value."

I pity the fools. For buyers, the next 25% drop will wipe them out. Interest rates will be 8%+ soon enough to get a grip on inflation.

Cleaver

amcluesent wrote: »

"For buyers, it's finally back to the good old days. After months of famine, houses are trickling onto the market and tales abound of dramatically reduced asking prices. Price cuts of about 25 per cent are seeing a resurgence in London house sales, which sends the strongest signal yet — the buyers' market is back.

Some vendors report dozens of viewings and multiple bids, once they have reduced by on average 25 per cent from the peak value."

I pity the fools. Another 25% drop will wipe them out.

So did Mr T. And he ain't gettin' on no plane.

If people have got a nice tasty deposit and are just buying a house 'cos they fancy somewhere to live, why will it 'wipe them out'?

lostinrates

amcluesent wrote: »

I pity the fools. For buyers, the next 25% drop will wipe them out. Interest rates will be 8%+ soon enough to get a grip on inflation.

See, thats the kind of mood enhancing post I needed yesterday when saved from our own tomfoolery. Instead I broke my annual abstinance from alcohol, three weeks early.:o:rolleyes:

mewbie_2

Interesting anecdotals. I wonder if some people are playing Property Bee, place initial price higher than it should be, then knock large amount off back to reality price a couple of months later. People love thinking they have bought a bargain.

gjchester

Or to my mind more likely the vendors think the house is worth what it was 6 to 9 months ago and set the prices accordingly. When they don't the viewings they finally listen to the estate agent's valuation.
We've seen a few like that, and the estate agents say they can't get some buyers to see sense until they have no viewings, I know we discounted some houses just down to the fact they appeared on the market at a silly rate and never went back to review them.

besonders1

I agree, Whenever new houses appear onto rightmove, they nearly always are priced above the current selling price for houses in the area, it makes me wonder whether the estate agent recommends this knowing fine well that it wont sell at that price or the vendor sets his/her own price based on what the house across the road sold for last year. Seems as if some sellers are totally deluded with no reversible cure!

besonders1

repossession is now being seen as the most effective "treatment" from a banks point of view at nursing the property market back to health

b0rker

besonders1 wrote: »

repossession is now being seen as the most effective "treatment" from a banks point of view at nursing the property market back to health

How is a few repo sales a day nursing the market back to health?

pickles110564

fatpig wrote: »

The onset of repossession proceedings might work.

At that point you are passed the point of no return.

Austin_Allegro

besonders1 wrote: »

Seems as if some sellers are totally deluded with no reversible cure!

This article does at least show that some sellers are realising they will only sell if they drop their prices, which is a step in the right direction.

However, I agree with your comment. Most sellers, IMO, will never have a 'capitulation' moment if they have not seen the way the wind is blowing yet.

They will cling on to peak valuations until the bitter end, and even if they sell will maintain they were somehow defrauded by the Government, bankers, 'cheeky buyers' etc for decades afterwards, in the same way some people go on about 'Fatcher' or even Wilson's 'pound in your pocket' to this day.

BenL

The sellers may well be realising they have to drop 25%, they probably still happy though as they are getting 25% off the higher prices house they are wanting to move to. "If mines gone down that much, then that one has too"

Works ok near the top of a chain but the people at the bottom just can't take the hit due to negative equity risks.