MSE News: House asking prices rise 3.5%

Former_MSE_Helen

"House sellers hiked asking prices by more than £8,000 in October, says property website Rightmove ..."

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House asking prices rise 3.5%




This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.

wymondham

you can ask all you want.......... what you get might be entirely different.

gadgetmind

Well, quite.

As selling prices have plummeted, asking prices have mostly sailed on without seeming to notice.

Then -
http://www.zoopla.co.uk/press/releases/017/uk-homeowners-in-denial-over-housing-slump/

Now -
http://www.retirementinvestingtoday.com/2012/08/the-greater-fool-uk-house-price-index.html

breadlinebetty

Selling prices haven't plummeted in London o the south east - they've actually risen:money:

It's not actually true that you can ask anything you want; you'd be an idiot to ask way over the true value - you wouldn't get any buyers!

Likewise, you can offer any amount you feel fit, but no-one in their right mind will let their propety go for peanuts......:)

gadgetmind

breadlinebetty wrote: »

you'd be an idiot to ask way over the true value - you wouldn't get any buyers!

This is exactly the position we're in. (I'm also in a hotspot but we need to look at the general case.)

Likewise, you can offer any amount you feel fit, but no-one in their right mind will let their propety go for peanuts......:)

What happens is they turn down a reasonable offer because "it's peanuts" and then get no more offers. A few months later, they drop the price down to close to the offer, but the market has by then dropped further. They then turn down another reasonable offer ... rinse and repeat.

Davesnave

It's just noise. The market, London bubble excepted, is not much different from where it was a year ago.

What exactly is on the horizon that might improve confidence? I can't see anything, though I can imagine crises elsewhere buffeting dear old GB Plc for some years to come.

Of course, if prices are hiked now, it gives more scope for "realistic reductions" in a month or two when it's even more dark, dank and dreary!

breadlinebetty

gadgetmind wrote: »

This is exactly the position we're in. (I'm also in a hotspot but we need to look at the general case.)

What happens is they turn down a reasonable offer because "it's peanuts" and then get no more offers. A few months later, they drop the price down to close to the offer, but the market has by then dropped further. They then turn down another reasonable offer ... rinse and repeat.

Well that's all speculation isn't it? What if....what if....what if....procrastinators never get rich!

And what if the property prices in that area suddenly soar?? It can work both ways you know.:money:

If buying is an issue with you, for whatever reason - just keep renting and forget about ever owning your own home.

Simple really.

brit1234

This is asking prices not selling prices. Selling prices continue to fall

The asking price rise represents all the people putting there homes back on the market after the summer holidays, when estate agents tell them they will get the most money.

Personally I ignore asking prices especially Rightmove figures as they are extremely distorted as they are only initial asking prices. They are not adjusted if the seller reduces the price. That's why the asking prices are a 1/3 higher than selling prices.

So people can put what ever price they want but it doesn't mean it will sell at that. Selling prices continue to fall in the mean time.

gadgetmind

breadlinebetty wrote: »

Well that's all speculation isn't it? What if....what if....what if....procrastinators never get rich!

I've seen it happen many times.

If buying is an issue with you, for whatever reason - just keep renting and forget about ever owning your own home.

I've owned my own home since I was 24 and bought my "forever house" at 30.

This doesn't mean that I can't have the view that house prices are still unsustainably high and that many sellers don't sell because they can't accept that house prices do fall from time to time.

ukcarper

brit1234 wrote: »

This is asking prices not selling prices. Selling prices continue to fall

The asking price rise represents all the people putting there homes back on the market after the summer holidays, when estate agents tell them they will get the most money.

Personally I ignore asking prices especially Rightmove figures as they are extremely distorted as they are only initial asking prices. They are not adjusted if the seller reduces the price. That's why the asking prices are a 1/3 higher than selling prices again.

So people can put what ever price they want but it doesn't mean it will sell at that. Selling prices continue to fall in the mean time.

I agree rightmove asking prices don’t mean much but don’t start on asking prices 1/3 higher than selling price rubbish.

gadgetmind

ukcarper wrote: »

don’t start on asking prices 1/3 higher than selling price rubbish.

If selling prices fall, yet asking prices don't, which of these is right and which is wrong? Has the gap between the two widened or narrowed?

As it happens, I don't expect a major correction in the short term as interest rates are low, and the bank are being very generous with forbearance, which means we have few forced sellers.

However, QE hasn't yet triggered the inflation that was expected, but it will happen eventually. The plan when it does would seem to be (reading between the lines) for the BOE to sell their gilts back to the market to reduce M4. If this doesn't affect inflation as expected (which buying didn't) then the only other recourse is to raise interest rates.

As they say, when the tide goes out, you see who's been swimming naked.