Lack of properties props up house valuations

brit1234

All this supply and demand argument is simplistic and over exgarated. Aceess to credit, savings and price are far more important. Even if there is huge amounts more of people who want propert than there is property prices don't just go up continously. They are limited by access to fianace. The amount of people looking in estate agents no matter how estate agents want to spin is not a solid indicator of the hiusing market.

lostinrates

michaels wrote: »

Local Anecdote
In March/April/May no new properties came on to the market and all the old dross that had been on the market since for ever went under offer/sold.
Come May/June a rash of new properties appeared at 2007(+) prices. These have not sold and some have already been reduced.

My conclusion - there is pent up demand to move but not 'at all costs' and the 'money illusion' of previous high prices deters sellers from accepting the new market reality.

A house near me is on four over four times what the owners bought for abour 7 years ago. This is complicated by the fact they have indeed done extensive work which no doubt will have added significant value, quite possibly over double the value of the proerty when they bought. I say over double because the house is over twice the size now, and although I prefered it in its original state, I think its nicely enough done to not have taken away too much o the ''charm'' value. Its stuck on the market a LONG time now, since late 2007. No price reduction. Other stuff that is comarable has sold, at much, much lower prices.

Another roughly comparable property reduced in 100K stages three times, went on early 2007, now is withdrawn from sale.

Its sometimes incredibly difficult to guage ''value'' in such an unpredictable market, with so much lack of certainty.

halight

Well i dont think ill be selling my house any time soon
we were forst time buyers in 2006 and only put a 8% depostit down.
We have done quite a bit of work to the house since we moved in But i would say that we would be in NE now.
We live in the west midlands 13 miles outside birmingham. A lot of call centers and factors in the area have layed of a lot of there staff so houses are not selling very well at all.

bo_drinker

Round here this may be the case, we are looking to buy but in the areas we want to go to they are not coming up. The ones that have stuck either have issues or are over priced. There's not enough coming on to the market at a time when it should be. Another factor is it actually costs to put a house on the market now where before it was just a case of get the agent round and stick the board in the ground.

Turnbull2000

Haven't noticed a price crash of any real kind up here in Tynemouth. Rather than make a 'loss' on 2007 values, they simply leave it on the market for as long as it takes, let it out or stay put - particularly those on dirt cheap tracker mortgages. There's four properties for sale in my mam's street, and not one is willing to reduce below peak values despite them being on the market for between 6 and 14 months.

I have noticed a recent surge of sold signs mind you.

scousethife

bryanb wrote: »

Law of supply and demand?

Theres over a million oh rightmove for sale!

Supply and demand my @rse

Cat695

The heading should read


Stupid people continue to pay over the odds for houses...when all they have to do is WAIT!!!

HAMISH_MCTAVISH

:rotfl:

We tried to warn you. Pent up demand is real, but the bears misguided concept of pent up supply is nonsense. If people didnt need to sell by now, they don't need to sell. More houses may well come on the market as prices rise, from people that didnt need to sell for less. If they dont sell, then they will be withdrawn, rented, or just sit there til prices do rise.

Approvals rising, lending for purchase rising, prices rising. No newbuilding going on, and population to increase by 12,000,000 in the next 40 years.

House prices headed only one way, and it aint down......:D

:T

IveSeenTheLight

brit1234 wrote: »

All this supply and demand argument is simplistic and over exgarated. Aceess to credit, savings and price are far more important. Even if there is huge amounts more of people who want propert than there is property prices don't just go up continously. They are limited by access to fianace. The amount of people looking in estate agents no matter how estate agents want to spin is not a solid indicator of the hiusing market.

Brit, what your describing I would state is desire.
Demand is the desire and the access to funds

Generali

IveSeenTheLight wrote: »

Brit, what your describing I would state is desire.
Demand is the desire and the access to funds

Spot on!

People get very confused about what constitutes supply and demand.

Supply and demand drives house prices in the UK - as prices aren't capped or supported directly, it's all there is.