Sellers drop asking price as competition for house buyers heats up

Thrugelmir

Bear food.......... Bulls if you haven't cashed in after recent rises. You've missed the boat. :rolleyes:

A seasonal lull in the recent homebuying frenzy has prompted sellers to reduce their asking prices by 2.2 per cent in August to achieve a sale, according to figures out on Monday.
The typical asking price in the UK is now £222,762, down from £227,864 in July. In London, asking prices have fallen by 3.8 per cent, from £402,761 to £387,265.

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6798312.ece

Graham_Devon

All the indicators are now pointing to crash part 2.

Surprising how things can change in a matter of a couple of months.

confused31_2

Graham_Devon wrote: »

All the indicators are now pointing to crash part 2.

Surprising how things can change in a matter of a couple of months.

Im starting to think this myself, by me people have been taking low offers, but some of the prices are so unrealistic, the one house is up for 250,000 pounds its a semi detached property, i know in 2006 similar houses sold for 235,000 pounds what planet are these people on?

wageslave

confused31 wrote: »

Im starting to think this myself, by me people have been taking low offers, but some of the prices are so unrealistic, the one house is up for 250,000 pounds its a semi detached property, i know in 2006 similar houses sold for 235,000 pounds what planet are these people on?

I dont know about which planet but they are living in the State of Denial.
You can ask for any price you like for your house, getting it, is something else entirely.

Thrugelmir

Graham_Devon wrote: »

All the indicators are now pointing to crash part 2.

Surprising how things can change in a matter of a couple of months.

The stock market changes in minutes.

But equities are tradeable , property is illiquid. As some people have yet to find out.

Graham_Devon

Thrugelmir wrote: »

The stock market changes in minutes.

But equities are tradeable , property is illiquid. As some people have yet to find out.

Don't just mean the stockmarket. (I know you werent suggesting that).

I mean sentiment. The type of reports we are now seeing from those with VI even include a statement of "but hings could get worse" or similar, like some sort of clause they are popping in now to cover themselves. That guy from the BOE (David Blanckflower was it?) even warning not to listen to the hype.

I think in the run up to christmas, unemployment and people struggling with mortgages will be the biggest type of story when talking about houses.

The sun will dissapear and people will start to see through the spin, especially about things like the perfected "best" average wage these "houses are so affordable" are actually based on.

Also places like DSG now wanting a scrappage scheme because sales of white oods have all but diminished. If sales of white goods have diminished because of recession, personally I feel we can take a lot from that. If people aint buying as many white goods, they sure won't be buying as many houses.

All these little stories of how we are coping are giving me more reason to feel as if these low mortgage applications and turnover are held up only by those who are wealthy anyway, not the average joe. Just the other day there was a news report saing deposits by FTB's had jumped from 10% to 23% in 6 months. That's not normal, thats just wealthy FTB's.

confused31_2

wageslave wrote: »

I dont know about which planet but they are living in the State of Denial.
You can ask for any price you like for your house, getting it, is something else entirely.

The thing is a few buyers have come back and jumped in head first, why dont they do there homework?

Thrugelmir

Graham_Devon wrote: »

Don't just mean the stockmarket. (I know you werent suggesting that).

I mean sentiment. The type of reports we are now seeing from those with VI even include a statement of "but hings could get worse" or similar, like some sort of clause they are popping in now to cover themselves. That guy from the BOE (David Blanckflower was it?) even warning not to listen to the hype.

I think in the run up to christmas, unemployment and people struggling with mortgages will be the biggest type of story when talking about houses.

The sun will dissapear and people will start to see through the spin, especially about things like the perfected "best" average wage these "houses are so affordable" are actually based on.

Also places like DSG now wanting a scrappage scheme because sales of white oods have all but diminished. If sales of white goods have diminished because of recession, personally I feel we can take a lot from that. If people aint buying as many white goods, they sure won't be buying as many houses.

All these little stories of how we are coping are giving me more reason to feel as if these low mortgage applications and turnover are held up only by those who are wealthy anyway, not the average joe. Just the other day there was a news report saing deposits by FTB's had jumped from 10% to 23% in 6 months. That's not normal, thats just wealthy FTB's.

Agree totally. We are in a political vacuum. Without an election we are in limbo.

Speaking to a couple of friends in Ireland tonight. Their income has been reduced by around 400 euros a month with the tax changes! There are going to be some nasty shocks sooner or later.

wageslave

confused31 wrote: »

The thing is a few buyers have come back and jumped in head first, why dont they do there homework?

Buying a home is, for most people, an emotional transaction as much as a financial one.
When I bought my current house, I had been in rented accommodation for almost two years and the market was starting to rise. I would have bought just about anything I could afford.
I can understand the jump first and worry second mentality. The only thing I can say in my favour is that I could afford my house, I was too scared to risk buying something I couldn't.

HAMISH_MCTAVISH

Graham_Devon wrote: »

All the indicators are now pointing to crash part 2 a bear trap over next winter.

Fixed that for you.

LydiaJ

In my area I've seen some rents falling as well as asking prices for house sales.