Home sellers fear lower prices

ukcarper

Graham_Devon wrote: »

http://www.guardian.co.uk/business/2011/oct/11/rics-housing-market-slowdown-economy

Seems they can blame some of Septembers retail figures on the housing market too!

Anyway, not sure what pulling your house off the market is going to do. If prices fall, they fall regardless. Either these people now can't sell due to negative equity fears, or they, for some reason didn't really want to move in the first place, so just pull their houses off the market. I don't really get it in all honesty.

Can anyone explain the mindset that if house prices look to fall, it's better to pull your house off the market, and sit on it for longer, therefore possibly watching it fall further before you move?

If you are trading up and have a lot of equity it makes perfect sense to wait.

the_flying_pig

ukcarper wrote: »

If you are trading up and have a lot of equity it makes perfect sense to wait.

well, yes, if you're planning to trade up it makes sense to wait.

if you're planning, though, to trade down or just sell up it makes sense to push ahead.

are there more trader-uppers than trader-downers out there? i suppose it's possible if you imagine a 'cascade' whereby [a very, very, crude generalised example obviously], say, 20-somethings trade up from 2-bed to 3 bed, 30-somethings trade up from 3-bed to 4-bed, 40-60 somethings stay put, and 70-somethings trade down from 4-bed back to 2-bed.

Rinoa

Graham_Devon wrote: »

http://www.guardian.co.uk/business/2011/oct/11/rics-housing-market-slowdown-economy

Seems they can blame some of Septembers retail figures on the housing market too!

Anyway, not sure what pulling your house off the market is going to do. If prices fall, they fall regardless. Either these people now can't sell due to negative equity fears, or they, for some reason didn't really want to move in the first place, so just pull their houses off the market. I don't really get it in all honesty.

Can anyone explain the mindset that if house prices look to fall, it's better to pull your house off the market, and sit on it for longer, therefore possibly watching it fall further before you move?

Don't know why the Guardian mention vendors pulling thier house off the market. The RICs survey said no such thing, merely reporting that new vendor instructions had declined.

Really2

Similar thing happened in late 2008/ 2009 (and we all know what happened then). Not good news for those wanting falls if the trend continues.
I think we discussed this 2009 that the pattern of people pulling houses when prices drop and putting them back on when prices increase will most probably go on for the next few years.
Think it was with LiR?

Thrugelmir

ukcarper wrote: »

If you are trading up and have a lot of equity it makes perfect sense to wait.

Many recent homeowners lack substantial equity. In particular the interest only borrowers. Who are seeing what little equity they have disappearing.

Mallotum_X

Really2 wrote: »

Similar thing happened in late 2008/ 2009. Not good news for those wanting falls if the trend continues.

RICS are report falling prices, so if the trend continues then how does a trend of falling prices continuing lead to rising prices...

Heading into winter, with report after report of poor economic stats, lots of support for the housing market, gently falling prices, yet somehow thats bad news for people who want falls.

Really2

Mallotum_X wrote: »

RICS are report falling prices, so if the trend continues then how does a trend of falling prices continuing lead to rising prices...

Heading into winter, with report after report of poor economic stats, lots of support for the housing market, gently falling prices, yet somehow thats bad news for people who want falls.

The article reports to falling stock, that can transpire to rising prices, as I gave you an example late 2008 -2009.

Prices were falling as stock was falling, a point happened where demand was higher than stock and prices increased.

Deny it happend if it makes you feel better. But it is a bit silly, considering there is an example of it happening in this cycle.

People who want falls would want rising stock.

Graham_Devon

Mallotum_X wrote: »

RICS are report falling prices, so if the trend continues then how does a trend of falling prices continuing lead to rising prices...

Heading into winter, with report after report of poor economic stats, lots of support for the housing market, gently falling prices, yet somehow thats bad news for people who want falls.

It's not really bad news for people who want to see falls.

It's just forum politics.

Carl31

Graham_Devon wrote: »

Can anyone explain the mindset that if house prices look to fall, it's better to pull your house off the market, and sit on it for longer, therefore possibly watching it fall further before you move?

The fact that many people do not have enough financial awareness to understand how the housing market works, and hence should not have been given mortgages in the first place?

People want to make money from their house, so that means selling for more than they paid. Most people dont realise that once you factor in the total costs or buying and maintaining, its pretty unlikely a mortgaged property will ever make much profit, not for a number of years anyway

Really2

Graham_Devon wrote: »

It's not really bad news for people who want to see falls.

It's just forum politics.

Do you deny what happend in 2009?

How can falling stock be good for buyers?

People who want falls would want increased instructions as it would drive down prices.

It's not a bull bear point just simple economics, one with an example in this cycle.

Brush it off if you like but if it carries on there is a fair chance of 2009 repeating.

I said to Thrugelmir yesterday we seem to be stuck inbetween 2008 and 2009, with what happens in europe deciding the direction.