DM: Plight of 1.1m stuck in homes they can't sell

tomstickland

I know a part time estate agent. They told me that prices were falling because the lending requirements for first time buyers were so stringent.

HAMISH_MCTAVISH

tomstickland wrote: »

I know a part time estate agent. They told me that prices were falling because the lending requirements for first time buyers were so stringent.

Then obviously most first time buyers are unable to take advantage of the cheaper prices and lower interest rates.



Oh dear.

carolt

It's good to kow you do care, after all, Hamish, about first time buyers.

One might even have imagined otherwise.

Rochdale_Pioneers

Graham_Devon wrote: »

Well you are not really "stuck", as you have no need to sell.

The article talks of those needing to sell for reasons such as work, new life in the house etc.

Yes, my 100 mile each way commute is completely sensible. You are right, why would I want to see my kids grow up?

pjread

Rochdale_Pioneers wrote: »

Our estate agent can't tell if our asking price is too high now or not - there are so few transactions he can't tell.

Well there's the key nobody seems able to see. if it's anything like the level at which there are "so few transactions he can't tell" it's obviously too high.

You can't just take average completion figures, volume is a function of the price too - if ten houses sell in 4 weeks for 200k one year, then only one sells in 6 months five years later for 25% less, the true value or attainable price has obviously decreased by more than 25% & one person just got lucky eventually.

Sibley

I'm glad people can see its a dead market now. Cutting the price wont sell your home only attract the wrong type of buyer. Better just sit it out. Wont take long to get back to normal.

harrup

Sibley wrote: »

I'm glad people can see its a dead market now. Cutting the price wont sell your home only attract the wrong type of buyer. Better just sit it out. Wont take long to get back to normal.[/QUOTE]

Hmmm...interesting.

Could you please define "back to normal"?

I'm assuming you mean ever augmenting HP. People, with less job security than ever, overextending themselves. Maxing their credit cards, robbing Peter to pay Paul and THEN when the whole tenous financial situation gets really precarious....then they blame the banks and mortgage societies for giving it to them.

But here's the thing that I can't get my head round: banks etc don't lend money to hapless, naive children. They lend it to adults. People who are able to comprehend the ramifications of their actions. Ok, they may choose not to, but they are capable of it.

Anyhow, is that what you are hoping for? Back to the good ol' days where people simply bought before thinking "can I/we actually afford this??"

nickj_2

are they stuck in a house they can't sell or a house that they shouldn't a purchased in the 1st place

ukcarper

harrup wrote: »

Sibley wrote: »

I'm glad people can see its a dead market now. Cutting the price wont sell your home only attract the wrong type of buyer. Better just sit it out. Wont take long to get back to normal.[/QUOTE]

Hmmm...interesting.

Could you please define "back to normal"?

I'm assuming you mean ever augmenting HP. People, with less job security than ever, overextending themselves. Maxing their credit cards, robbing Peter to pay Paul and THEN when the whole tenous financial situation gets really precarious....then they blame the banks and mortgage societies for giving it to them.

But here's the thing that I can't get my head round: banks etc don't lend money to hapless, naive children. They lend it to adults. People who are able to comprehend the ramifications of their actions. Ok, they may choose not to, but they are capable of it.

Anyhow, is that what you are hoping for? Back to the good ol' days where people simply bought before thinking "can I/we actually afford this??"

How long do you think that was normal for

Graham_Devon

Rochdale_Pioneers wrote: »

Yes, my 100 mile each way commute is completely sensible. You are right, why would I want to see my kids grow up?

Well in that case, you either need to take the hit and move, realising yoru house isn't worth what it was....or don't move and take the hit with the commuting.

Can't really have it all ways (i.e. moan your commute is to long and moan people won't give enough for your house, even though no one can actually figure out what its worth)....that is without someone else stepping in to your position to relieve you of it....which is what many (not speaking about you here) people want to happen.

These sellers, those declining the offers are merely hoping someone else will step up to the table to take over all the sellers issues, and pay a higher price than the seller paid for the privilege.

Looking at this article, and the comments at the bottom, the sentiment is hugely on the bearish side. Why would any prospective buyer pay over the odds to relieve you of your house now, when sentiment is so dire.

Either got to take the hit and move, or stay where you are and continue your commute.