And house prices coming back down again...

carolt

In my area, anyway, after a summer of gradually rising prices, asking prices are now back to almost peak levels, in many cases...but, of course, interest rates for those entering the market are higher, and mortgages harder to come by, than in 2007.

So, now that (nearly) all the properties which had lowered their prices after not selling for yonks have finally sold - at the lowered prices, obviously - we're left with a supply of pricier properties, not been on the market long, imagining that the headlines are true and they can ask peak prices again.

Except...news appears to be filtering down to those who are serious sellers that this isn't working. Suddenly seeeing new property offered at low, low prices again. (None of the higher price stuff is shifting, of course.)

How long will it take until all the sellers of properties put on at over-ambitious prices in the last few months realise that actually the market was only there for the reduced prices - not for the peak-priced properties?

How long till we repeat the big reductions we saw last winter?

Should be an interesting few months..... :rolleyes:

Anyone else spotted this trend in their area?

mewbie_2

Yes. I noticed some stuff was selling. But other houses, particularly towards top end not selling despite grinding reductions - up to 25% in some cases.

Ok if a cash buyer pops in and buys a house. But putting a chain together must be hell...

the_ash_and_the_oak

think the problem for many sellers isn't so much that the price is too high (tho it may well be) - its more that there aren't really enough buyers with means out there (and as rates for current owners have come down significantly there's not always that much pressure to sell either)

this leads to a situation where houses either sell for closeish to asking price or they don't sell at all imo (or 'how prices rose while volumes fell' if you prefer)

carolt

Not seen the 'close to asking price' scenario near me - sold prices suggest that the gap depends on how overpriced the property is; a few will sell near asking price, when they judge the market correctly; others will have to accept substantial cuts.

Certainly not much property out there. But not many buyers with the means to buy them at silly prices either.

PasturesNew

Chap on another thread is selling his house at £125k, he only paid £43k for it in 2001 ... it's not that long ago - and I bet when he paid that he felt it was over-priced....

Oh how quickly people forgot how high the previous high prices were already.

£50-100k for a 3-bed semi = OK
£150-300k for the same house a few years later = nuts.

the_ash_and_the_oak

not many buyers at 'silly prices minus x%' either imo

carolt

Raoul_Duke wrote: »

I agree with this but maybe he has done the house up, bit of magnolia etc ..

Yeah, must have added at least 50 grand with the magnolia. And the pot plant.

PasturesNew

Raoul_Duke wrote: »

I agree with this but maybe he has done the house up, bit of magnolia etc ..

He said he had, but everybody says they do their house up ... not that much. Others in the road sold for the same/less in the following 12 months, so it can't have been that out of line with the rest of the market.

That was about the same most houses rose in the same time.

It's like some mass hypnosis that high house prices aren't really big scarey numbers.

If people sat down and worked out how long it would take them to pay off the capital they'd be sh1tting themselves.

sjaypink

just seen this week a couple 1/ 2 bed starter homes here sold (in june) for less than they sold for in 2002, and the other 2003

one of them was bought in 2007 for £134k, they sold for £101k :eek:

nembot

I wouldn't be suprised in the slightest if prices dropped 20%+ over next few years, only then will we see something resembling sustainability.

The madness has become so overwhelming that it's not just developers ramping, but home owners who in some case seem incapable of accepting this material wealth (they never really had) could only be realised by selling their home, which they didn't - but don't want to give up, what they now cannot have.

All a little surreal, if you ask me...

No doubt someone will be along shortly to discredit my thoughts with the classic "shortage of houses" and "rising unemployment isn't a factor" or possibly intarweb threats of "public humilation" for having an opinion... oh how I lol'd

Cleaver

mewbie wrote: »

But putting a chain together must be hell...

I've often thought that recently. I could never quite work out how everyone organised 15 solicitors and 15 estate agents and all their finances in 2006 to make things fall in to place, let alone now.