Sellers drop prices as extra homes flood property market

silvercar

He wasn't allowed to have that money himself as it was paid to his lender,

Technically correct, but he had an offset mortgage where any overpayments are fed into some offset account and can be withdrawn at will by the borrower, so effectively he had the money to live on.

new_home_owner_3

Loads of houses are coming on the market by me and a lot have gone sstc very quicky, ive currently got three friends buying aswell, what the prices these houses are selling for i dont know, but i will in a couple of months.

my one friend had his offer accepted of 170000 on a property up for 175000 the other friend is buying a house from his relative, and the other one has bought a wreck to do up.

infact where i live there are 80 semi detatched houses on rightmove and 37 have gone sstc, which is nearly 50 percent, but like i said i dont know what they are selling for but they are selling.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^84047&insId=6&sortByPriceDescending=false&secondaryDisplayPropertyType=semidetachedhouses&includeSSTC=true&_includeSSTC=on

PasturesNew

silvercar wrote: »

I know some who massively profitted from this. The best deal was someone paying 0.01% = BOE - 0.49% fixed for 2 years. Lost their job and SMI paid out 6.08%, leaving them in profit to the tune of 6.07% on a 200k mortgage = over £1000 a month. Hardly worth finding a job again.

Seems unfair when renters would only get £15 a week more than their rent.

It also seems unfair to me since I lost the interest on my savings (which I had planned to always be there as my "in case I didn't get a job" money) ... and I don't get any benefits.... and even if I took a full-time job at under £11k/year I'd not even qualify for WTC because when they look at my savings they make an assumption about interest rates that is of a similar misguided amount, so deem that I have lots of £X coming in from that.

PasturesNew

Here are some figures from my area, although the figures are annoyingly inaccurate because when you select "houses" you don't get houses... you also get holiday homes on holiday parks and park homes on residential sites.

Houses for Sale Including SSTC: 263
Houses for Sale Excluding SSTC: 223

Although a lot that go SSTC do reappear on the market.

So, 40/263 are marked as sold, which is 15.2%

For flats that is: 293, 266, 27, 9.2%
For "all" that is: 618, 551, 67, 10.8% (where all includes: houses, flats, bungalows, commercial premises, land)

gubdlog

Blacklight wrote: »

Haven't people always reduced the prices of things that didn't sell immediately? I don't think this is a new phenomenon.

Yes it always happened in history.

Its happening now because houses are still overvalued, if you want to sell your house in the next few years you will have to drop the price a lot.

Chris2685

I really wish I could see where these price crashes are all of a sudden. I hope they do crash personally, but I can't see any real hard evidence of it happening. Reading past the BS in the posts, there really is nothing concrete there.

If they do begin to seriously crash however, it really will crash this time because there is nothing left for the government to do to stop it! Interest rates can't possibly go lower, unless savers have to start paying the banks! QE has gone as far as it will go I think. I can't imagine the government would bail out any more banks...

ruggedtoast

Chris2685 wrote: »

I really wish I could see where these price crashes are all of a sudden. I hope they do crash personally, but I can't see any real hard evidence of it happening. Reading past the BS in the posts, there really is nothing concrete there.

Exactly. Due to changes in jobs and circumstances I've been plugged into the housing market in several different areas in London and the SE since 2007.

There has been no significant fall in prices in any areas that I would want to live in in the last four years.

The council estate prefab places that were being snapped up by desperate 'young professionals' in 2007 have taken a massive hit and I feel very sorry for those people stuck in them; but essentially this is irrelvant to me as I wouldnt live in those areas if it was free.

Average quality housing that is semi suitable for bringing a family up in is in very short supply. For reasons that are mostly unfathomable to me, the "status quo" as it were, is determined that it stays that way.

I really would question whether anyone who is in a position to buy now, is doing the right thing by waiting, unless theyre not paying much in rental.

Chris2685

ruggedtoast wrote: »

I really would question whether anyone who is in a position to buy now, is doing the right thing by waiting, unless theyre not paying much in rental.

It's something I have been putting a lot of thought into.

LittleMissAspie

Still not happening here. 150 houses in my regular search. In the last 7 days, 7 are new on and 6 price drops.

ruggedtoast

Chris2685 wrote: »

It's something I have been putting a lot of thought into.

I think the question you have to ask is, are prices really going to fall each month by more than you are paying in rent?

And how much more to make it worth having to put up with being a tenant?

Currently I'm paying £900pcm in rent. Psychologically for me, I would have to see prices falling month on month by around £1500 to start feel like I had made a mistake.

And this would have to continue for a long time. -.06% in putative asking prices just isnt going to deter me from looking to buy somewhere, or anyone else I would think.