House sellers' move to raise asking prices is 'illogical', says Rightmove

Generali

the_flying_pig wrote: »

what, people can't 'afford' to sell cheap so won't? what a load of rubbish. the same could be said of the period following any real estate bubble including the Irish and Northern Irish ones. prices still fell plenty.

I think the trouble is that people are missing the end of the sentence. It should be:

...people can't 'afford' to sell cheap so won't unless they have to.

Nominal interest rates are very low right now so people can afford to service their mortgages for the most part. If rates rise without the economy improving, market rates that is not base rates, then I expect that more people will struggle to service their mortgages.

the_flying_pig

Generali wrote: »

I think the trouble is that people are missing the end of the sentence. It should be:

...people can't 'afford' to sell cheap so won't unless they have to.

Nominal interest rates are very low right now so people can afford to service their mortgages for the most part. If rates rise without the economy improving, market rates that is not base rates, then I expect that more people will struggle to service their mortgages.

low interest rates are absolutely a factor that will mitigate downward pressure on house prices, of course they are.

but this "can’t afford to accept a lower price" nonsense is, unfortunately, a completely seperate 'argument'.

Orpheo

Alternative headline:

Estate Agents Continue To Overvalue Properties To Entice Vendors

mramra

Blacklight wrote: »

Cue another three weeks of Carol posting replies to herself to bump the thread onto the first page in order that every internet user in the UK will see it and single handedly change the nations public sentiment so her and her millionaire husband can afford a mansion and a yacht.

Please try to keep up. The yacht has been put on hold due to the forthcoming cuts in child benefit.:rotfl:

neas

Basically its the 'buy my house for X.... and if you cant afford it... then keep renting'. attitude.

Where only the rubbish homes will be put on market. I bought my house for almost same my vendor payed for it 6 years before. There was no way she was going to go any lower than that because in her head she was 'losing' something, she had two homes, didnt need to sell them as she could've easily rented the thing out (good area)...

Basically people will take homes off market and maybe start renting them out again... or as per last mini-crash people will wait it out for a couple of years at least.

CloudCuckooLand

EAs could see the writing on the wall, so recommended vendors build some extra leeway into prices, because they know the gap between asking prices and sold prices will shift from approx 5% to towards 8%+, as in 2008...some buyers won't realise and will think 6% off is a bargain, when they could have pushed to 8%...

Seems worth a go. A few will gain. The first to drop price, or the better quality properties, probably.

Its the rest, who missed the chance to be first to drop, who will lose the buyer for their street for that month/quarter, who will come to regret the ploy.

Has there ever been a Monopolies commission investgation, or cartel-type investigation into EA activities? Time for one?

dopester

neas wrote: »

Basically its the 'buy my house for X.... and if you cant afford it... then keep renting'. attitude.

Well with all the mortgage rescue schemes, so many people on micro-low SVR mortgages and dirty boomer quantative easing by the hundreds of billions of pounds.. there could be something in that.

Can only hope that despite all the red-carpet treatment given to home-owners (inc those with mortgages) to keep the market inflated, events turn due to the weight of real world factors playing out.

Including public sector cuts and tighter lending criteria and businesses recoiling from such an artificial market environment.. (where they're no longer dependent not upon old-world business concepts such as taking over some failing business at a low value to restructure it and make good profit from their work and risk, but on the glory of QE.)

It really needs a trigger (eg: interest rates up and the end of dirty QE) if we're to see some proper, healthy, house price readjustment unless it's going to be a massively drawn out affair.

chucky

CloudCuckooLand wrote: »

EAs could see the writing on the wall, so recommended vendors build some extra leeway into prices, because they know the gap between asking prices and sold prices will shift from approx 5% to towards 8%+, as in 2008...some buyers won't realise and will think 6% off is a bargain, when they could have pushed to 8%...

Seems worth a go. A few will gain. The first to drop price, or the better quality properties, probably.

not sure i agree with this but i think i do.

the average percentage of asking price acheived is somewhere between 93% and 94%

chucky

dopester wrote: »

It really needs a trigger (eg: interest rates up and the end of dirty QE) if we're to see some proper, healthy, house price readjustment unless it's going to be a massively drawn out affair.

that's not going to happen too soon.

but... your scenario could heppen if rates rise and the economy doesn't grow.

FTBFun

CloudCuckooLand wrote: »

Has there ever been a Monopolies commission investgation, or cartel-type investigation into EA activities? Time for one?

I somehow doubt EAs are smart enough to organise a cartel.