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Debate House Prices


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A true story..........

I've got a mate who decided to sell his home in Ealing London.
Now this place would not be my cup of tea. It looked like a nice house but had actually been converted into 2 flats.

Anyway it went up for a massive £295,000.

To be honest it would have been around the £150,000 mark where I live.

I did wonder how he would get on selling it.

It's been on market 7 weeks and he signs sell papers tomorrow. Full asking price. He had 3 buyers all foreign.

I'm not having a go here but all the bears. When I see this with my own eyes how can I possibly accept we are in the grip of a house price crash?

How did this happen? Why did it make such good money?

Was it a blip?

At the end of the day houses haven't dropped. They are still desirable to everyone and they sell. You are praying for prices to drop so you can buy. If this ever happened you would be the worst bulls in history. Normal homeowners don't really watch the market like you. I expect you would be on HPC everyday gloating how clever you were.

So, explain the Ealing phenomena please?

I'm not putting the advert up until he signs tomorrow.
We love Sarah O Grady
«1345

Comments

  • phil_b_2
    phil_b_2 Posts: 995 Forumite
    edited 26 August 2010 at 2:27AM
    I have some bad news, You appear to have caught the 'round my way' disease. Its rather contagious unfortunately. Take one dose of reality and half a spoon of sense then you'll be reet ;)


    Round my way disease: the mental dillusion that the actions of a few local properties is indicative of the whole market.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    edited 26 August 2010 at 3:23AM
    Sibley wrote: »
    I've got a mate who decided to sell his home in Ealing London.
    Now this place would not be my cup of tea. It looked like a nice house but had actually been converted into 2 flats.

    Anyway it went up for a massive £295,000.

    To be honest it would have been around the £150,000 mark where I live.

    I did wonder how he would get on selling it.

    It's been on market 7 weeks and he signs sell papers tomorrow. Full asking price. He had 3 buyers all foreign.

    I'm not having a go here but all the bears. When I see this with my own eyes how can I possibly accept we are in the grip of a house price crash?

    How did this happen? Why did it make such good money?

    Was it a blip?

    At the end of the day houses haven't dropped. They are still desirable to everyone and they sell. You are praying for prices to drop so you can buy. If this ever happened you would be the worst bulls in history. Normal homeowners don't really watch the market like you. I expect you would be on HPC everyday gloating how clever you were.

    So, explain the Ealing phenomena please?

    I'm not putting the advert up until he signs tomorrow.

    Annecdote isn't data.

    The data show that from 2007, prices fell, rose again and now appear to have stagnated.

    The BBC state that in Q1 of 2010, the average house price in Ealing was £342,604 and prices seem to have risen slightly since then which suggests your mate hasn't done that well. I guess it depends how his place compares with the average.
  • Sibley lives in Maidstone Kent not Ealing.
    He never said it was round his way. North London is hardly up the road from him.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sibley wrote: »
    It's been on market 7 weeks and he signs sell papers tomorrow. Full asking price. He had 3 buyers all foreign.

    I'm not having a go here but all the bears. When I see this with my own eyes how can I possibly accept we are in the grip of a house price crash?

    How did this happen? Why did it make such good money?

    Was it a blip?

    Answered your own question. Rural England isn't so popular with foreign buyers.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Sibley lives in Maidstone Kent not Ealing.
    He never said it was round his way. North London is hardly up the road from him.

    Welcome to the forum, for a first post you seem to know a lot about people. :)

    Do you do tea leaves as well. ;)
  • diable
    diable Posts: 5,258 Forumite
    Thats West London for you and Ealing is now "classed" as a nice area.

    In Shepherds Bush a 3/4 bed house in need of work, a lot of work went on the market for £650k was sold in two weeks for £630k, there is money out there if the property is in the right location.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 26 August 2010 at 9:12AM
    Sibley lives in Maidstone Kent not Ealing.
    He never said it was round his way. North London is hardly up the road from him.
    David - sorry to break to you sunshine but Ealing is West London...

    correct Sibley by all means but get it right yourself
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    What's this? A whole thread trying to convince who?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 26 August 2010 at 9:09AM
    Thrugelmir wrote: »
    Answered your own question. Rural England isn't so popular with foreign buyers.
    10,000 property transactions a month in London - foreign buyers buying 10,000 properties a month? doubt it very much...

    living in Swindon you're obviously an expert on foreign buyers and which areas they buy in London.

    google is obviously your friend...
  • I think the upper end of the market will remain reasonably strong but I think we will see a wider divide as houses on the the lower end of the scale will lose more value.

    People who have money will more than likely always have money. As the saying goes money makes money.

    Where I live a huge proportion of the houses are now being marketed as NO CHAIN. This indicates to me that they are mainly looking to cash buyers, because many of these houses are out of the price range of most 1st time buyers.

    It will probably go back to the old vicious circle of the property chain again. House prices will drop, all the rich people will buy up all the property while it is cheap, hold on to it until the market picks up and then sell on and make their profits again. House prices will boom again then we will eventually have the inevitable crash and the cycle starts again.
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