House Market Stalling?

MrRee_2

I'm always very upbeat, as you know.

However, I have noticed a change in the wind regarding house selling recently.

Number 1 - the Halifax reports a drop in house prices for December 2013.

Number 2 - we have a few youngsters in our office who have bought in 2013 and a couple who are looking to buy now.

Number 3 - I have been keeping an eye on property to buy a holiday home on the coast.

No. 1 is probably due to Xmas .... but, looking at No 2 and 3 I'm not so sure.

No. 2 ... the youngsters buying last year were literally fighting each other for property when it came to the market, this created a panic and prices rose significantly from spring 2013 onwards. However, those looking at property now are being contacted by Estate Agents daily asking them to view properties ....... that's a marked change and indicates a falling off of demand.

No. 3 ... in 2008 and 2009 I had Agents contacting me all the time to view properties on the coast, then it stopped as they had buyers willing to buy in 2010 and price started recovering. A property I was tracking has come back onto the market and the Agents are now starting to contact me as they did in 2008.

When you are close to the market like I am you notice small changes in how hard Estate Agents have to work to get viewings ...... they seem to be struggling like they were in 2008/2009.

Now, I'm not suggesting a fall in house prices of any great amount - what I am flagging up is what I have noticed, and that is a lack of people looking at properties ...... the buyers have either been satisfied last year, or for some other reason they have fallen away in some numbers?

This is in the afluent South by the way, where prices never really fell in any case. Just the sentiment seems to have changed over the past 10 months.

Anyone as close to the action as I am noticed this as well?

dotdash79

Or more people are feeling confident about the market and thus the number of houses for sale is increasing.

MrRee_2

I did think that may be the case ...... but not here. The market is as dry of properties as it has been for 6 years.

I did also think that, as sales were booming last year, and Estate Agents were hiring fast, that Agents were simply chasing down sales. But that doesn't seem to be the case either.

Property is still selling - just not within the hour as they were for most of 2013.

I feel there is a distinct slowdown? That's no bad thing, it was overheating here of that there was no doubt.

AndyGuil

It always slows notably on the run up to Christmas and generally winter.

MrRee_2

True ..... but it's different this winter - I can't quite put my finger on it.

AndyGuil

I think it is more likely there are a few overpriced properties and less people looking due to Xmas/winter. The properties on the higher side tend to linger on the market longer. After a high amount of demand over 2013 the demand will fall back over the winter in the market cycle. 2014 will be interesting when the demand increases again.

JWF

Wrong kind of snow?

MrRee_2

It could just be that prices increased to such a point where the pips are popping for buyers?

They say that wages haven't shot up, so I'm not sure where the 'new' money for the 2013 purchasers came from?

AndyGuil

MrRee wrote: »

It could just be that prices increased to such a point where the pips are popping for buyers?

They say that wages haven't shot up, so I'm not sure where the 'new' money for the 2013 purchasers came from?

Many purchases are low loan to earnings ratio. Just over 3 if I recall from the other thread so there is a lot of head room. We are into a low demand season at the moment. There is also a possibility that estate agents are trying to force bidding competition by pulling in as much demand as they can on one property. All I have noticed around me is less properties on the market. I haven't seen ant stay listed long.

PasturesNew

Asking prices seem to have taken a leap - that I can't/won't pay for.

e.g. A 3 bed with conservatory house sold in a road summer last year, now there's a 2-bed without conservatory for sale for £10k more.

shortchanged_2

Maybe common sense has prevailed.