MSE News: Highest monthly house asking prices rise for a decade

billybear1

I agree, as a potential buyer I think that the market is hugely inflated by sellers with unrealistic ambitions.

I try to benchmark the Sold STC and Under Offer properties with the ones still on the market and it is clear to establish why the ones that do sold have, and why the ones that have been on there for a while haven't. The simple case is it is overpriced. I have been looking at the area I want to buy with a magnifying glass for the last 6 months and what some people want for their highly polished turds in unbeleiveable. They will sit there.

andy.m_2

Currently am a looking buyer.
Have scoured RM for abou 6-9months and have kept a watchful eye on prices with a readiness to pounce...

There has to be regional differences for a start.
Niche properties will sell once they find the niche buyer.
Sellers are not even entertaining 20% cuts on offers down here.
Builder modernised stuff just sits and sits and sits unsold as too many people caught a cold with daytime TV promises of an easy buck or ten for no effort.
However, there are some properties that are flying out the door at sensible money and 95% offers or higher, ceilings are only coming down a little and stuff that needed modernising is now coming to market at already 10% under with the promise of 5% under that.
People that are selling "showhomes" are getting offers, grot seems to no longer fetch 2% under tasty, maybe this is the difference?

HAMISH_MCTAVISH

brit1234 wrote: »

This isn't due to rising confidence in sellers but rising delusion.

Given that we're nearly 5 years on from the start of the financial crisis, and house prices remain stubbornly high, the only delusion around here is from those expecting prices to fall significantly.

Actual selling prices will continue to fall.
.

You've been saying that every week since they started rising in Feb 2009.

And they're still higher today than they were then.

billybear1

True, but there are a vast majority that are just stupidly priced and so sit there. I am not saying house prices have fallen 10%! The market will always decide, there is a set amount of demand out there, granted it is slightly subdued but there is demand. What these sellers don't seem to realize is that if something isn't shifting you have to do one of a few things.

1) Remove from market until the demand rises enough to reach equilibrium at set selling price.
2) Lower price until equilibrium is reached where demand level reaches set selling price level.ns
3) Make enough improvements to attract the desired fixed price.

The deluded point comes in when sellers are not willing to let the market dictate what the property is worth. Instead they continue to turn their nose to market conditions and hope point 1) occurs throughout the subdued market conditions.

Yes, it is the sellers decision to sell at whatever price they see fit. However, by putting into the market they should accept that with subdued market conditions they may not achieve what they may have hoped and ultimately, the market will decide.

Pincher

Do people still believe in the ten year cycle?

1988, crash, 1998, crash, 2008, crash,

Any bets on 2018?

googler

As with all house price statistics, this is a rise in the average of all asking prices; surely, with less FTB properties coming to market (because there's a dearth of FTBs to buy them), the average goes up because the remaining properties are weighted toward higher prices?

jimpix12

HAMISH_MCTAVISH wrote: »

Given that we're nearly 5 years on from the start of the financial crisis, and house prices remain stubbornly high, the only delusion around here is from those expecting prices to fall significantly.




You've been saying that every week since they started rising in Feb 2009.

And they're still higher today than they were then.

Never mind mortgage advisors, I think Martin should force you to come with a warning about making delusional and misguided statements on house prices.

zappahey

googler wrote: »

As with all house price statistics, this is a rise in the average of all asking prices;

Not quite. It's the average of the asking prices of new adverts coming on to Rightmove and takes no account of reductions or of house mix.

googler

zappahey wrote: »

Not quite. It's the average of the asking prices of new adverts coming on to Rightmove and takes no account of reductions or of house mix.

and this contradicts my point (with less FTB properties ... the average goes up because the remaining properties are weighted toward higher prices) in what way...?

If there's less lower-priced properties coming onto RM, the average of the asking prices goes up, surely?

Gra76

Myself and my family are looking to move home at the moment.

We've been looking for something that fits our criteria for our next property for months but everytime something comes up that fits the bill it's unrealistically priced, with sellers that are unrealistic in their demands. Some more than others, but always unrealistic.

A more extreme example - A property comes onto the market in a small village not too far from where we want to be. It all looks very tidy, and has everything we want from our next house. Through the wonders of Google Streetview I can see the property is named, rather than just a number on the street, so I thought I'd have a quick look to see what it last sold for. Thanks to the wonders of the internet I see that it last sold for £205k back in 2007 when the market was either at, or close to its peak. It doesn't look like it's seen any work done to it since it was last bought either.

How much does the seller want in the advert? Almost £230k....a £25k increase on what they bought it for at the height of the boom. Better still, they seller has sectioned off a large part of the garden and is selling that at a further 'minimum of £40k' as he's managed to get planning permission for someone to build a bungalow on it.

I thought I'd humour the estate agent to find out if the seller was willing to take a lower offer and was told that £230k was as low as they were prepared to go as they'd already reduced the price by £10k...priceless. Obviously that's a more extreme example but we've found that people either refuse to lower the asking price at all, or will drop it by so little it's barely worth a second look.

As it stands we're moving nowhere, not until people start becoming more realistic.