The homeowners who cannot move home

homelessskilledworker

HAMISH_MCTAVISH wrote: »

Wrong again.

It's more like 35%, but many of those have repayment vehicles.

The number without a structured repayment vehicle is estimated at more like 20%.

Or less than half your false claim.

And I wonder how many of these people have borrowed from the same endowment provider using the money they have put in already as security.
It's a win win situation for the endowment provider, they lend the money that you have given them and charge you interest.:)

shortchanged_2

ukcarper wrote: »

No price is the main barrier according to you can you offer some proof that it is.

Halifax just over 4x average I/C Nationwide about 5x as far as i know you can still get a 4x I/C mortgage.

Some anecdotal but it's also obvious to anyone. The houses that are currently selling are the ones that are appropriately priced. You can see them instantly when they go on things like right move, they are the ones that sell quite quickly. Others just languish on the market for years and years with no hope of selling because they are overpriced.

Ask yourself carper, it's not rocket science. Why are some houses selling (admittedly not many because the majority are still overpriced) and some are not?

jules888

After all the comments have reduced price by another £3000,now ours is the cheapest 3 bed semi in Yarm!Lets see what happens!

Percy1983

To be honest in many cases house prices have leveled off and many aren't in NE but now don't have HPI they did nothing to earn.

Strangerly I am in a house now and if I wanted a bigger one I would expect to save for it, not buy it with some magical equity I did nothing for.

shortchanged_2

jules888 wrote: »

After all the comments have reduced price by another £3000,now ours is the cheapest 3 bed semi in Yarm!Lets see what happens!

Sorry but I don't know your local market.

Just out curiosity what is your asking price? Because if we are talking about a £300,000 house a drop like that is not worth bothering with.

ukcarper

shortchanged wrote: »

Some anecdotal but it's also obvious to anyone. The houses that are currently selling are the ones that are appropriately priced. You can see them instantly when they go on things like right move, they are the ones that sell quite quickly. Others just languish on the market for years and years with no hope of selling because they are overpriced.

Ask yourself carper, it's not rocket science. Why are some houses selling (admittedly not many because the majority are still overpriced) and some are not?

if you have more sellers than buyers a certain amout of property will never sell unless you undervalue it in which case it will probably be bought by your favorite person the BTLer.

shortchanged_2

ukcarper wrote: »

if you have more sellers than buyers a certain amout of property will never sell unless you undervalue it in which case it will probably be bought by your favorite person the BTLer.

But we are told by the bulls on here that there is 'massive' pent up demand.

pinkteapot

Two points:

1. They should distinguish between those with negative equity and those with insufficient equity to put a deposit down on a new house. Most of those in the latter group could move if they wanted to because they could sell up and rent, though it would mean crystallising the loss on their current house. The only ones who couldn't would be those with almost zero equity who couldn't afford the selling fees, removal costs and rent deposit. Some with negative equity can also move, if they have the savings to cover the shortfall.

2. Negative equity is not a new phenomenon. It happened in the crash of the early 1990s. It may well have happened in market crashes before that one (e.g. the 1970s), although I don't have any data on that.

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb090203.pdf

p. 116 compares 2009 with the early 1990s.

Cutler (1995) estimates that 1.1 million households were in

negative equity in 1995 Q2, equivalent to 11% of all
mortgagors. That is broadly similar to the estimate for
2009 Q1 presented earlier that is most methodologically

similar — the method based on mortgage transactions data

It does then go on to say that for various reasons the extent of NE may be higher than it was in the 1990s.

The point is though that this has happened before, and it'll happen again. There have been posts about NE on the main housing board for the last few years. I'm not sure why the original story is being presented as 'news'.

ukcarper

shortchanged wrote: »

But we are told by the bulls on here that there is 'massive' pent up demand.

Aren't the operative words pent up.

shortchanged_2

ukcarper wrote: »

Aren't the operative words pent up.

Yes of course. People want to buy, but can't because prices are too high with the current market conditions, which of course then equates to houses being overpriced.