Buyer / Seller Mismatch

Graham_Devon

Basically this article suggest that there is a [growing] buyer and seller mismatch. Over half of potential buyers think property in their local area is over priced, whereas only a 3rd of sellers hold the same view.

The biggest concern for sellers was achieveing an offer they consider sensible. However, what the seller believes is sensible and what the buyer believes is sensible are growing further apart.

The research also found that houses are still 5x the average income.

However, when it comes to asking both buyers and sellers what is likely to happen to property prices, both groups overwhelmingly suggest they will stay the same or rise. A fifth of these people thought the rise would be due to overpricing.

'Naturally, sellers have an interest in standing their ground in order to achieve the best price but in the current housing market, where sellers outnumber successful buyers by around two to one, sellers need to lower the price or increase the perception of value to avoid being outflanked by their competition.'

http://www.thisismoney.co.uk/news/article-2184218/Buyers-sellers-face-housing-stand-differing-opinions-realistic-prices-tough-economy.html

Graham_Devon

I'm not really sure what you are suggesting wotsthat? I think you are suggesting the long run average is wrong?

The average is never distorted. It is what it is based on prices at the time.

Generali

IMHO, this is the main reason why the UK housing market has stopped functioning. Buyers can't/won't buy and sellers can't/won't sell at prevailing prices.

abaxas

Generali wrote: »

IMHO, this is the main reason why the UK housing market has stopped functioning. Buyers can't/won't buy and sellers can't/won't sell at prevailing prices.

I would disagree as currently looking to buy.

Correctly priced property sells quickly. The problem is that 80% (my guess) of new things coming to the market have a 20-50% 'I dont want to ever sell that premium'.

Frustration all round as valuations are often based on what other people have put their houses on for, not for what things have actually sold for.

JonnyBravo

Graham_Devon wrote: »

I'm not really sure what you are suggesting wotsthat? I think you are suggesting the long run average is wrong?

The average is never distorted. It is what it is based on prices at the time.

You're quite right the average isn't wrong. It's the average of the past data.
I think wotsthat is saying that the fact it's so infrequently near the average means that it's not a very accurate predictor of the future.

Generali

abaxas wrote: »

I would disagree as currently looking to buy.

Correctly priced property sells quickly. The problem is that 80% (my guess) of new things coming to the market have a 20-50% 'I dont want to ever sell that premium'.

Frustration all round as valuations are often based on what other people have put their houses on for, not for what things have actually sold for.

Perhaps I misunderstand you but it seems like you are agreeing with me.

You have a price in mind at which you wish to buy which you believe is the correct price however most sellers want you to pay considerably more.

There is no meeting point between buyers and sellers for the most part thus there is no market price. If you as a buyer agreed a price with a seller you would no longer be a potential buyer, you would have bought!

abaxas

Generali wrote: »

Perhaps I misunderstand you but it seems like you are agreeing with me.

You have a price in mind at which you wish to buy which you believe is the correct price however most sellers want you to pay considerably more.

There is no meeting point between buyers and sellers for the most part thus there is no market price. If you as a buyer agreed a price with a seller you would no longer be a potential buyer, you would have bought!

I am agreeing, but also saying that sometimes people do want to actually sell :P

The other problem is chasing the market down. Lots have lost another 10-15% simply due to greed.

shortchanged_2

abaxas wrote: »

Correctly priced property sells quickly. The problem is that 80% (my guess) of new things coming to the market have a 20-50% 'I dont want to ever sell that premium'.

Frustration all round as valuations are often based on what other people have put their houses on for, not for what things have actually sold for.

This is exactly what I am seeing.

You can tell which houses are going to sell quickly as you can see they are keenly priced.
The others just languish on the market for years and years and when it eventually dawns on them that they are overpriced they go and knock 1-2% off the asking price.:doh:

and funnily enough they still don't sell.

Some houses are so ridiculously overpriced it's laughable and I don't know why these people waste theirs and others time (Yes, that's me feeling sorry for EA's! )

Sibley

There are some great comments on that article....No crash to see here. Move along......

abaxas

Sibley wrote: »

There are some great comments on that article....No completed sales to see here. Move along......

I've edited your post, to convey what you meant to say.