Are house prices falling?

trafalgar_2

eurows wrote:

I agree that you need to get as much as possible for your house in order to buy another. However I was in the estate agency recently and was commenting on a house that had been on the market for over 1 and a half years. The estate agency said they valued the house at £315.00 and the seller told them to put it up to £345.00 saying someone will buy it.

there I agree it's greed but then if no-one buys it at the over-inflated price..............it hasn't done them any good .

thank you for responding to my query

t_i_g_e_rr

There is a report on the BBC website by their economic correspondent. He has a mortgage that he can afford, one which I assume doesn't force him to settle the mortgage if he moves house. He wants the price of his flat to plummet to 25p. This way, a mansion would cost only £10, therefore he could move out of his flat into the mansion for only £9.75. Great idea! This demonstrates that no matter what your house is worth, if your moving UP the market, you want house prices to go down, even if that does affect the value of your own house. The only people who benefit from a rising market are the few people moving DOWN the market.
I don't think a house price drop would do us any harm; it certainly wouldn’t do me any harm!

patchwork_cat

I live in Brighouse and the houses that you are talking about are on opposite sides of the road.

This can make all the difference the bottom end of Stratton road on one side being case in point- because they have 100 ft gardens.

I feel that houses aren't shifting that well around here and I have been watching the market for nearly 4 years, but feel that they are probably right as I doubt that there will be a drop, merely a slow down. Although we were supposed to be the fastest price rise town some 18 months ago, when u compare Brighouse with say Leeds prices are very competitive.

I do feel that we won't see the 30 % per year rises that we have been used to and some owners will take some adjusting.

zag2me

Nationwide the statistics suggest the market is static at the moment. But if you look at all the historic graphs they would suggest a reduction soon enough. But no-one can predict the future.

eurows

Sorry. The houses I was refering to were on Saville Close. If you look on the website http://www.rightmove.co.uk/soldprices.rsp/svr they have a new house checker section were you can see the price paid for houses --- FREE. All the houses are the same on that small cul de sac. The last to sell at the end of the year was sold for £213,000 another that is for sale now started at £215.00 went to £199,000 and is now at £180,000.

meanmachine_2

Sadly, the market *is* driven by greed. Just as, in the past, estate agents would overvalue properties, now they're forcing sellers to drop their prices, just to keep the market going. It's the same process but in reverse.

With property sales down to a ridiculously low level I can see the whole economy starting to go down the plug hole. If the estate agent isn't making money, then neither is the surveyor, or the DIY chain, and so it goes on.

To think that a tiny tiny rise in interest rates - to a still very low 4.75% has brought the economy to a standstill. That really is scary.

ManAtHome

It's likely to be the same as all the other booms (and not just in House prices) - the 'bandwagon effect' usually ensures that prices over-shoot then under-shoot their long-term trends. After the late 80s boom, prices around here (West Yorks) actually dropped around 15% (probably around 50% allowing for inflation and expectations) over 6 or 7 years before they started picking up again. Unfortunately, the financial sector were giving out the 'prices are still going up' message for a year or so after they'd stalled - there were a few prospective sellers in my street actually increasing their prices even though they'd had nobody round to view for months!

Of course, if you didn't need to sell, or if were selling to move somewhere else, there was very little impact other than the sheer level of choice (nervous times if you had to move rather than if you just wanted to).

As many people have said on several threads, the real impact of rising or falling prices is on FTBers and 'down-sizers', although this may be changing (and getting more worrying) as an increasing number of people put all their investment eggs in the housing basket.

PinkLipstickBabe

eurows wrote:

Sorry. The houses I was refering to were on Saville Close. If you look on the website http://www.rightmove.co.uk/soldprices.rsp/svr they have a new house checker section were you can see the price paid for houses --- FREE. All the houses are the same on that small cul de sac. The last to sell at the end of the year was sold for £213,000 another that is for sale now started at £215.00 went to £199,000 and is now at £180,000.

I've just tried that link and it doesn't work. Is it a problem with my computer or is the link faulty? Can someone else check it to see? This is one link I would like to visit.
Thanks x

deemy2004

t_i_g_e_rr wrote:

There is a report on the BBC website by their economic correspondent. He has a mortgage that he can afford, one which I assume doesn't force him to settle the mortgage if he moves house. He wants the price of his flat to plummet to 25p. This way, a mansion would cost only £10, therefore he could move out of his flat into the mansion for only £9.75. Great idea! This demonstrates that no matter what your house is worth, if your moving UP the market, you want house prices to go down, even if that does affect the value of your own house. The only people who benefit from a rising market are the few people moving DOWN the market.
I don't think a house price drop would do us any harm; it certainly wouldn’t do me any harm!

Thats great if people think rationally, like above

But they DON'T !

They will percieve the paper drop as a REAL drop - The same way as they did not think that shares were cheaper to buy after the 1987 crash - Which they were instead it was Shock, horror, Ive lost 30% !!!!!

trafalgar_2

try this one and then clcik the sold prices section

http://www.rightmove.co.uk/rm/