Hilarious! People in my area are increasing their asking price!

Harry_Powell

Before I bought last year, I was sat watching house prices fall in my target area on almost a daily basis. Why is it then so difficult to believe that the reverse could happen and house prices rise?

Certainly if I were still a FTB and started to see my target houses increase in value, and continued to see 'good news' stories such as the UK leaving recession, house prices rising, etc. I'd be looking to jump in quickly before I was priced out.

Perhaps these rises are a combination of panicing FTBers and 'kiddology' from vendors. Whatever they are, it's up to the owners set the price of their house and the buyers to say what they are willing to pay. The true value lies somewhere inbetween.

harrup

nollag2006 wrote: »

Good to see house price rises now seem to be spreading out from outside the South East

nollag2006....I'm not certain that it represents an actual rise in HP.

I think at present it simply demonstrates that vendors are fed up in exclusively getting offers way below it. Both of the houses I referred to earlier I would say were competitively and realistically priced.

And I know that one of them had heaps of offers...but all way below asking price.

fimonkey

Harry_Powell wrote: »

Before I bought last year, I was sat watching house prices fall in my target area on almost a daily basis. Why is it then so difficult to believe that the reverse could happen and house prices rise? .

.. a small matter of interest rates that can only go up, the threat of a hike in taxes, pay freezes, continued job cuts and a stuffed economy.. but then maybe I'm just a pessimistic bear

Harry_Powell wrote: »

Certainly if I were still a FTB and started to see my target houses increase in value, and continued to see 'good news' stories such as the UK leaving recession, house prices rising, etc. I'd be looking to jump in quickly before I was priced out. .

As a potential FTB I'm running the other way from the stupidly high price rises .. no jumping on the bandwagon for me, that's one of the causes of the ridiculous rises in the past anyhow.... away from the topic but my own personal rant is why bother busting your gut to own a pokey cupboard when you can rent more space for less? Yes I know the one about "investment, future planning etc blah blah", but I live for here and now. Anyhow with the incoming free social care policy most homeowners will have to give a big proportion of their gains to the taxman to pay for this. I'll enjoy my frequent holidays of todays era, and in my old age live off the free handouts paid for by home owners whilst I own no assets

Harry_Powell wrote: »

Perhaps these rises are a combination of panicing FTBers and 'kiddology' from vendors. Whatever they are, it's up to the owners set the price of their house and the buyers to say what they are willing to pay. The true value lies somewhere inbetween.

Well at least you and I agree on one point.

sKiTz-0

Harry_Powell wrote: »

Certainly if I were still a FTB and started to see my target houses increase in value, and continued to see 'good news' stories such as the UK leaving recession, house prices rising, etc. I'd be looking to jump in quickly before I was priced out.

I was priced out a hell of a long time ago. Before I even had a chance. What do you suggest people like me do?

Redman30

nearlynew wrote: »

This time next year, prices will be lower than they are today.

"This time next year Rodders, we'll be millionaires..."

IveSeenTheLight

fimonkey wrote: »

.. I'll enjoy my frequent holidays of todays era, and in my old age live off the free handouts paid for by home owners whilst I own no assets

What makes you so sure that social handouts will be available for you in the future?
There are many posts and points made on here that it is unsustainable and therefore there will need to be a culture change.

Have you considered that your carefree way of living for today and now and not considering the security of your future is akin to other millions out there.

You want frequent holidays and all the rest and be able to buy a house. Very simplistically, I can see how you are not in a position to buy

IveSeenTheLight

Redman30 wrote: »

"This time next year Rodders, we'll be millionaires..."

I thought about saying that too.
The problem was, for Del Boy at one point it came true

ukcarper

IveSeenTheLight wrote: »

I thought about saying that too.
The problem was, for Del Boy at one point it came true

Didn’t he lose it all

IveSeenTheLight

ukcarper wrote: »

Didn’t he lose it all

He did indeed. Wanted to throw the old watch away as well.
Lost it to shares if I recall, hence why as I have similarly (but not to the same extent) lost money through shares, I now invest more in property.

Doesn't mean that old del boy wasn't fortunate and got it right though.

No doubt Del NearlyNew will be correct at some point in the future.
How long is the current cycle length?

drc

harrup wrote: »

It is in SW England.

But here is the thing ..... I personally know 2 properties which didn't sell until they hiked up the price. Hard to fathom , but this is what happend.

Example 1 was an idyllic 2 bed bungalow. Would have needed lots of repair work but the setting and garden was specacular. On for 305K, didn't sell for 8 months.

The vendors increased the price to 325 one month ago, changed agency and it was sold almost instantly.

Example 2 : a 3 bedroom detached house: didn't sell for 345, didn't sell for 325, the moment they put the price up to 365 it was sold.

I think what may have happened was that EA told those vendors that they had to price the property "realistically" and "competitvely". The vendors obliged and then only got offers galore way below the AP which they didn't accept. Frustrated, they eventually hiked up the price in order to achieve what they wanted all along.... which I presume was 305 and 325.

This way the buyer felt they got a "good deal", and the seller got what they wanted in the first place.

Just a guess, mind you.

I've noticed something similar on ebay.

Two identical items. Worth about £25 in the shops.

One starts at 99p, the other is BIN at £20. Often the 99p item will surpass the BIN price (and sometimes what it costs in the shops) because bidders think they are getting a bargain because the price started so low. There is also the psychology of chasing "their" item. I guess the same could be applied to house prices. There's no accounting for human stupidity.