'We've reached a tipping point' Signs of house price weakness

Crashy_Time

AndyGuil wrote: »

It is just the mismatch in the supply demand cycle. As the demand rises the the asking prices go with it. Then as the demand drops back over the summer the asking prices reflect the oversupply. Very simple supply demand.

Why bother marketing your house in the summer if you know that demand (and prices) will be higher in a couple of months? What would happen if someone offered to buy it at that lower price, and you knew that (due to the iron clad laws of "supply and demand") you were taking less than you could get a couple of months later?

AndyGuil

Crashy_Time wrote: »

Why bother marketing your house in the summer if you know that demand (and prices) will be higher in a couple of months? What would happen if someone offered to buy it at that lower price, and you knew that (due to the iron clad laws of "supply and demand") you were taking less than you could get a couple of months later?

Exactly. The supply will begin to drop off as the market balance reshifts. They react to each other as a system. The selling price typically keeps rising just at different rates across the year. The choice of when to move house is often driven by other factors.

ukcarper

Crashy_Time wrote: »

Why bother marketing your house in the summer if you know that demand (and prices) will be higher in a couple of months? What would happen if someone offered to buy it at that lower price, and you knew that (due to the iron clad laws of "supply and demand") you were taking less than you could get a couple of months later?

If you are trading up its better. This is your problem you try to time everything most people decide they want to and can afford to move and put their house up for sale. Trying to catch market just right is almost impossible.

Libber

Crashy_Time wrote: »

Looks like asking prices in London are starting to head in the right direction?

Are they actually falling below recent sale prices for comparable properties or are they merely being reined back in after trying to front-run the recent boom?

Crashy_Time

lukeh23

The figures for august / sept will be the arbiter and put to rest the seasonal / monthly argument as to what is happening in the market.

I tend to rely on the prices i am seeing on the ground now, then a study / article. In the area i hope to buy, i am seeing a lot of reductions over just the past month. Quite a number of properties dropping between 10 to 30k off asking prices.

Its all there for anyone to see using property-bee

Its happening a lot in central london of course, but also greater london and the south east as a whole.

AndyGuil

The summer season tends to run through to October. June has been very typical of historic amounts. Asking prices drops are nothing out of the ordinary for this time of year despite ythis Rightmove report that asking prices in London are up 0.85% and 0.57% for the UK in July.

shop-to-drop

We have accepted an offer on ours but are unable to find anything suitable to buy so it all seems likely to fall through. The market is now becoming totally stagnant for this reason. The only properties we have seen lately are overpriced trashed ex rentals. For instance there is one on for £390,000 needs bathrooms, kitchen and flooring replaced immediately, kitchen is small for size of house so could do with extension or conservatory.

In march this year an identical house a couple of doors away in excellent condition with the addition of a large conservatory added to the kitchen sold at £320,000.

lukeh23

AndyGuil wrote: »

The summer season tends to run through to October. June has been very typical of historic amounts. Asking prices drops are nothing out of the ordinary for this time of year.

So everyone just takes a break from buying houses for five months of the year?

I expect when we get past october, it wil just be monthly cycles again or another dip as the eurovision song contest is is on.

AndyGuil

lukeh23 wrote: »

So everyone just takes a break from buying houses for five months of the year?

I expect when we get past october, it wil just be monthly cycles again or another dip as the eurovision song contest is is on.

Not everyone is looking to buy a house. It is not October anyway, it has a 2/3 month lag between offering and selling. This has got longer with MMR so really April to August which causes an effect on sold prices for June to October. MMR has made this longer.