Even Newbuild Prices Now Rising, Supply Shortage Worsens

HAMISH_MCTAVISH

The traditional autumn season for selling new homes has begun. But after 18 months in which new-build levels fell to unprecedented lows, those who were expecting bargain-basement deals might be in for a surprise.

Developers have had to lower their prices, but Knight Frank, the estate agent, estimates that prices for new-build houses are only 15 per cent off their 2007 peak, having bounced back about 10 per cent since the start of this year.

Prices for new-build flats fell more steeply and are still down by about a quarter, but many agents and developers believe that the time for real bargains — when housebuilders were desperate for cash and gave discounts of up to 40 per cent on finished homes — is over.

The reason is that developers are starting to benefit from the mess they found themselves in. Meanwhile, would-be buyers are confronted by a market starved of new homes because housebuilders have been unable, or unwilling, to finance developments or to make their costs stack up against current prices.

In the South East, one of the most resilient regions, the number of homes started last year was down 36 per cent on 2007 and at the lowest level since the Second World War. “Homes being completed now would have to have been started in the depths of recession. Not enough people were brave enough, or stupid enough, to do it,” says Yolande Barnes, head of residential research at Savills, the estate agent.

http://property.timesonline.co.uk/tol/life_and_style/property/new_homes/article6829227.ece

Even new build prices are rising as the market is "starved of homes"....

Proving once again that the underlying market fundamental is the principle of supply and demand. Always has been, always will be.

wymondham

excellent, here we go again !!

Yakubu22

HAMISH_MCTAVISH wrote: »

http://property.timesonline.co.uk/tol/life_and_style/property/new_homes/article6829227.ece

Even new build prices are rising as the market is "starved of homes"....

Proving once again that the underlying market fundamental is the principle of supply and demand. Always has been, always will be.

Lets put this into context...it comes from an EA who is estimating what they think "could happen"

Bootski

People are just FAR too fussy. There are good homes out there but buyers exptectations are unreasonable. They want too much property for much less money, NOW!

Then again it's hard to adapt, growing up in a world of buy now pay later idealism when you're still young.

These guys will miss the boat!

leveller2911

Why doesn't Martin and the movers & shakers of MSE give Hamish his own page..........This is getting soooooo Tedious......
Its like having to watch Eastenders every bloody day and the omnibus edition on Sunday afternoons................Ho Hum.......... makes you feel like slashing your wrists this...........

Mind you it did make me chuckle to see that the only "Thank you " Hamish had received was from "Bored poster" says it all really..lol

PUB ANYONE?????

skap7309

leveller2911 wrote: »

Its like having to watch Eastenders every bloody day and the omnibus edition on Sunday afternoons................Ho Hum.......... makes you feel like slashing your wrists this...........

Well thats me screwed, my missus has just turned on the Sunday omnibus after making me sit through the weeks doom & gloom of Eastenders. I have a butchers at goings on from here and find this!

Bootski

It's time to knock Eastenders on the head - you should be watching Black Beauty.

OR going to the pub to see real people with real lives!!

HAMISH_MCTAVISH

leveller2911 wrote: »

Why doesn't Martin and the movers & shakers of MSE give Hamish his own page..........This is getting soooooo Tedious......

Nice rant.

I didn't see you complaining when this board was getting flooded with doom and gloom articles earlier this year.

But now the articles are all good news, you're up in arms.

Sore loser, in my book.:rolleyes:

Bootski

HAMISH_MCTAVISH wrote: »

Nice rant.

I didn't see you complaining when this board was getting flooded with doom and gloom articles earlier this year.

But now the articles are all good news, you're up in arms.

Sore loser, in my book.:rolleyes:

I'd agree. It has gone very quite hasn't it. You could almost call people "doom mongerers" as they thrived on it at the time.

Now things may be getting better, nobody has anything to say! Is it part of GB's Psyche, d'you think??:rolleyes:

leveller2911

Bootski wrote: »

I'd agree. It has gone very quite hasn't it. You could almost call people "doom mongerers" as they thrived on it at the time.

Now things may be getting better, nobody has anything to say! Is it part of GB's Psyche, d'you think??:rolleyes:

ITS ALL BEEN SAID BEFORE........................NOTHING NEW, NOTHING TO ADD....

May be getting better???. The yard where I have my workshop also has parking for lorries.In the last 4 weeks out of a total of 12 lorries 10 have ceased trading(1 retired) and the only other business on the site packed up trading.This is one small trading estate ,in one small town in Sussex is this the exception to the rule???.Are jobs being created (apart from Tesco,s)???? are people confident about their own job security???.

There seems to be a certain few on here who are paranoid about house prices??????????? why? they aren't essential to life.

Call me a "doom mongerer" I have broad shoulders, but at least I live in reality .
I hope our economy picks up soon because its too all our advantage (except debt collectors) but I'm not holding my breathe.;):rolleyes:

Spartacus_Mills

Yakubu22 wrote: »

Lets put this into context...it comes from an EA who is estimating what they think "could happen"

Precisely.

Property pages in the press are little short of adverts for various vested interest whose existence depends on talking the market up. Indeed many articles are just cut n pastes from their press releases. Their ad money also comes in handy.

I have no doubt the market has picked up and things are looking up but I am still concerned. Partly for when interest rates go up and partly because I think we are not over the worst of the crash yet.

However I would take this "article" with a very large pinch of salt.

What next, Landlords say "never better time to buy beer"