What house price crash?

bodgerx

So we went to view a property today that was sold to the current owner in August 2009 for £152000.

Asking price, approx' 6-7 months on?

£175000!

Prices have increased 2% (apparently) in this time in my area.

We liked the house, and put an offer in for £158000. Predictably, it was rejected. I said to the estate agent that the offer was based on the previous selling price.

This was a new build last year and the estate agent said that discounts were good on this particular estate - but still, pretty good money spinner for vendor if he makes close to the asking price...

CloudCuckooLand

What did other new builds on the development go for? i.e. was this a particular one-off bargain, perhaps the last plot extra discount, which might mean its not now being too cheeky.

Or have they all gone around £152k, so that should have set that price as the going rate for the house type.

But, as always, asking price is a starting point. They will probably have built in some leeway. EA may have priced based on the recent report that says sold prices are -7% of asking price on average, and given themselves negotiating room, which would make £162k-ish their target.

The vendor will also be thinking your first offer is not your best offer.

So its now a case of who blinks first...how badly do you want it?

use Rightmove Price Comparison to check nearby similar properties; http://www.rightmove.co.uk/house-value.html

twadge_face

It's your (mostly borrowed) money, thus your (leveraged) risk.

Caveat emptor. Especially before the election like this.

Best of luck whatever you decide.

Milliewilly

I have found exactly the same where I am looking - I did put a post about it in the House economy section on here just before Xmas. I think its more to do with the limited supply of houses for sale.

Arthritic_Toe

I guess they can ask anything they like, but it doesn't make it worth that. 'Discounts' on new builds are all smoke and mirrors - invariably discounting from a heavily over-priced starting point.

Gwhiz

Wait for the second part of the double dip to happen!

Blacklight

Gwhiz wrote: »

Wait for the second part of the double dip to happen!

We're now so far under the historic trend when it comes to house prices it's not even funny. In order to catch up to the rises experienced, on average, every year since 1952 house prices would have to rise by 15% per year for the next five years. That's just to get back to normal. I think you saw as much of a drop as you're every likely to see twelve months ago.

Cannon_Fodder

Would love to see a link to the facts of post #7. I thought we were a touch over the trend line, again, since the 'recovery'.

Strange for such insight to come from a newbie poster. Who is behind the mask?

Arthritic_Toe

Blacklight wrote: »

We're now so far under the historic trend when it comes to house prices it's not even funny. In order to catch up to the rises experienced, on average, every year since 1952 house prices would have to rise by 15% per year for the next five years. That's just to get back to normal. I think you saw as much of a drop as you're every likely to see twelve months ago.

Not sure where you're stats are coming from. We're way above the historic trend. Great time to buy though, if you believe what you've said....

mlz1413

OP if you couldn't look up what the vendors had bought for and when, would you have considered this property a good buy?

You saw the details and went to view it so surely the house must be reasonably priced for you to bother viewing it?

Gwhiz

Blacklight wrote: »

We're now so far under the historic trend when it comes to house prices it's not even funny. In order to catch up to the rises experienced, on average, every year since 1952 house prices would have to rise by 15% per year for the next five years. That's just to get back to normal. I think you saw as much of a drop as you're every likely to see twelve months ago.

We shall see, but I'm betting on drops and stagnation!