Housing market stalls as economy splutters

brit1234

Housing market stalls as economy splutters

Francis Elliott and Sam Fleming 1 minute ago

Fears of a new slide in house prices emerged yesterday amid signs that the UK economy has begun to sag again. First-time buyers are finding it harder to get on to the property ladder than at any point for a quarter of a century because they need to raise larger deposits and borrow more money, according to analysis by the Nationwide building society. This is making the market virtually inaccessible to tens of thousands of would-be home owners who cannot rely on help from their parents. A separate report from the Royal Institution of Chartered Surveyors today reveals that many sellers are putting their homes on to the market amid fears of a slowdown in the economy. Businesses warned that consumer confidence was being hurt by constant talk of draconian public spending cuts and the prospect of VAT increases next year. The Bank of England is expected to cut its economic growth estimates sharply.

Glut will hit prices, homeowners warned

http://www.thetimes.co.uk/tto/news/

Dirk_Rambo

someone across the road from me has dropped the asking price 3 times so far and still cant sell. house prices are falling at a alarming rate

1984ReturnsForReal_2

Finally one sold around the corner from me at two thirds of the 2007 asking price....

& my next door neighbours had theirs fall through....

Still overvalued & needs to drop to 2004 levels to have a chance.

I wish they would stop holding out & just F Off.....

phil_b_2

Is it groundhog day?

Dirk_Rambo

no its tuesday i think

treliac

Dirk_Rambo wrote: »

someone across the road from me has dropped the asking price 3 times so far and still cant sell. house prices are falling at a alarming rate

And, presumably, some can't afford to drop beyond a certain point, or they wouldn't be able to settle their (negative equity) mortgage and other outstanding debts.

HAMISH_MCTAVISH

treliac wrote: »

And, presumably, some can't afford to drop beyond a certain point, or they wouldn't be able to settle their (negative equity) mortgage and other outstanding debts.

Which, as we saw last time around, results in the number of homes for sale reducing rapidly as prices fall.

And when supply reduces to the levels seen early last year, prices rise rapidly again.

ash28

Dirk_Rambo wrote: »

someone across the road from me has dropped the asking price 3 times so far and still cant sell. house prices are falling at a alarming rate

Where do you live??

In our street or "round my way", my neighbours on both sides have had their houses on the market (must be something we said).

The house to left of us was a probate sale - though the teen aged children (still at school) turn up at weekends with their friends and have gatherings - joy!! It was advertised as a fixer upper, the family had been in the house about 10 years and done nothing - not even decorated. I thought it would never sell - it sold with in 3 weeks. It was advertised for £310k, according to the kids uncle they accepted an offer of £300k. It's still all going through (up to now) and they should be moving out properly in a couple of weeks.

The house on the other side has been on the market now for about 2 months advertised at £325k, not advertised as a fixer upper, they had just replaced all the guttering and barge boards and front door with shiny new white plastic, so the outside is very nice, however they are academics and the inside of the house reflects this (I'm not saying all academics are paper hoarders). It is clutter heaven - if there is a surface for clutter or papers it is cluttered. They have been in the house about 13 years and have done very little to the inside, which is dated and a bit dark. They have had plenty of viewings but no takers, they reduced the price to £320k about a week ago. Neither of the houses have internal photos on the agents websites.

Perhaps if the EA could persuade them to advertise it as needing to be updated it would lower viewers expectations when going to look at it and give them a better chance of a sale - that and reduce the price a bit more to reflect the work that someone would need to do.

"Around my way" houses seem to selling at the moment - they weren't in the second half of 2008 and the early part of 2009. There was virtually nothing on the market then anyway.

Prices fell 16% here according to the Land Registry - they have gone up 12% since then so still below peak.

I have an interest in prices here as we will be selling in a few months - we will be downsizing to a bigger house in a cheaper area. Average prices here £275k average prices in new area £128k - so even if prices fall I'm not too bothered.

doire_2

brit1234 wrote: »

Housing market stalls as economy splutters

Francis Elliott and Sam Fleming 1 minute ago

Fears of a new slide in house prices emerged yesterday amid signs that the UK economy has begun to sag again. First-time buyers are finding it harder to get on to the property ladder than at any point for a quarter of a century because they need to raise larger deposits and borrow more money, according to analysis by the Nationwide building society. This is making the market virtually inaccessible to tens of thousands of would-be home owners who cannot rely on help from their parents. A separate report from the Royal Institution of Chartered Surveyors today reveals that many sellers are putting their homes on to the market amid fears of a slowdown in the economy. Businesses warned that consumer confidence was being hurt by constant talk of draconian public spending cuts and the prospect of VAT increases next year. The Bank of England is expected to cut its economic growth estimates sharply.

Glut will hit prices, homeowners warned

http://www.thetimes.co.uk/tto/news/

Its great logging in here and reading such an article :T

Doctor_Gloom

yes doire, the 2nd part of the crash is well underway. Personally I think this part of the crash will be even greater than the 1st part

robin_banks

Theres no 1 'housing market'.