Rightmove April +1.7%

HAMISH_MCTAVISH

Cleaver wrote: »

I think in an area like mine though (3 or 4 bed houses, family area) people do have access to mortgages. This isn't really FTBer land.

But still (mostly) reliant on FTB-s or investors buying their previous house, yes?

Mortgage rationing takes it's toll on everyone. Directly or indirectly.

The numbers of proceedable buyers will be well down in every market segment, not just FTB-land.

Cleaver

HAMISH_MCTAVISH wrote: »

I disagree.

What I think is happening is that 100% of the people able and willing to buy a house "round your way" are doing so.

They're just choosing to buy the houses that appear to be bargains.

If all of the houses were priced at the same higher price, the same number would sell, but they'd sell on features not price.

If all of the houses were priced at the same lower price, the same number would sell, but based on features not price.

Lowering the price of all the houses (again, within reason) would not result in an increase in sales.

I kinda understand what you're saying. But I can see with my own eyes that houses priced at around the £150k mark in my area sell and often sell quickly. The houses priced at £165-175k seem to sit on the market for two years or more.

My conclusion from this is that houses priced at £150k, for whatever reason, have buyers and then sell. Those at £170k do not. If I owned a house down this street and wanted to sell it I would consider putting it on the market for £150k (ish) so I could sell it. I would do this knowing that others were putting their's on the market at £170k and not selling them.

It's fine that you don't think this is the case, but let's just agree to disagree.

I agree with you that lowering the price of all the houses in my area would see the same issue. But that's never going to happen, as some people will always try and sell for more whereas others are more motivated to sell. So, I'm just saying, that if the house over the road from me reduced their price to £150k from £165k it would make it look cheap compared to the two other houses down my road on for around £170k. Agreed? They'd therefore have more chance of selling it.

Cleaver

HAMISH_MCTAVISH wrote: »

But still (mostly) reliant on FTB-s or investors buying their previous house, yes?

Mortgage rationing takes it's toll on everyone. Directly or indirectly.

The numbers of proceedable buyers will be well down in every market segment, not just FTB-land.

That's true, I agree.

Graham_Devon

HAMISH_MCTAVISH wrote: »

But still (mostly) reliant on FTB-s or investors buying their previous house, yes?

Mortgage rationing takes it's toll on everyone. Directly or indirectly.

The numbers of proceedable buyers will be well down in every market segment, not just FTB-land.

Have you just turned bearish? You are using all of our arguments.

"Demand doesnt matter if they can't access the funds - there are not enough buyers".

"Lack of FTB's means those moving up the chain are stuck" therefore you need FTBs...which recently you have been disagreeing with...as we have BTL investors.

The only difference is....you blame mortgage "rationing", others say prices are to high.

HAMISH_MCTAVISH

Cleaver wrote: »

So, I'm just saying, that if the house over the road from me reduced their price to £150k from £165k it would make it look cheap compared to the two other houses down my road on for around £170k. Agreed? They'd therefore have more chance of selling it.

Sure. But ONLY because the majority of houses remain priced at 170K.

As soon as the majority drop to 150K, there is no longer a price advantage, but the same number of houses will sell. Just based on a differentiator other than price. Like features and condition.

Cleaver

Graham_Devon wrote: »

The only difference is....you blame mortgage "rationing", others say prices are to high.

There is a majority of people out there, including myself, that recognise that both of these issues are major stumbling blocks to people buying houses. It doesn't have to be one or the other.

It's just on this site that you seem to need to choose one factor as the only factor, seemingly dependent on whether you have horns or catch salmon.

Cleaver

HAMISH_MCTAVISH wrote: »

Sure. But ONLY because the majority of houses remain priced at 170K.

As soon as the majority drop to 150K, there is no longer a price advantage, but the same number of houses will sell. Just based on a differentiator other than price. Like features and condition.

Indeed. Unless someone then puts their house on the market for £140k.

All my point is that people aren't buying houses down my street for the price most sellers seem to want to get. We can argue whether this is because of mortgage rationing, high prices or something else. Doesn't really matter to be honest, as if you want to sell your house down my street then you need to lower your price.

Of course, one of three things will happen:

1) This situation will continue. Stalemate between buyers and sellers.
2) Stalemate, but then sellers start give in after nothing seems to change and start to lower prices a bit.
3) Stalemate, but then buyers start to get more access to credit and can start buying houses for the higher prices, meaning that sellers don't need to start lowering their prices.

But all that is by the by at the moment, I'm just saying that at the current time, with all the current market forces, lowering your price in my area will probably get your house sold.

HAMISH_MCTAVISH

Cleaver wrote: »

seemingly dependent on whether you have horns or catch salmon.

I have horns AND I catch salmon.

What does that make me?

Cleaver

HAMISH_MCTAVISH wrote: »

I have horns AND I catch salmon.

What does that make me?

A goat with a fishing rod?

HAMISH_MCTAVISH

Cleaver wrote: »

I'm just saying that at the current time, with all the current market forces, lowering your price in my area will probably get your house sold.

Sure. But ONLY so long as everybody else doesn't lower their price too.

My point is that regardless of price (within reason), the same number of houses in your area will sell. The limiting factor at the moment is mortgage rationing, not price.

On another note, I'm pretty sure I can walk down the street all day long and sell £10 notes for £5 each. Doesn't make it a smart thing to do though...... I'd be better off renting out those £10 notes for a return.

And the smart homeowners are coming to the same conclusion... The number of houses in the private rental market is increasing to meet the huge demand from those shut out of buying because of mortgage rationing.