Property is now in a bear market

kilby_007

I wouldn't say the boom years are "yet to come". Some areas have doubled in price in 5 years. If that's not a boom then I'd like to know how you define it! In London there are thousands of unwanted homes being dumped on the market. Wages are 8% lower than they were 10 years ago (if you adjust for inflation), and do you think piles of QE and rock bottom interest rate = "stable growth"......? Estate Agents are now talking about buyers dropping out and chains falling through, and PCL properties being slashed by 10-15%.

cells

having spoken to two of the estate agents I work with they confirm the market is slow however no one seems to have priced things any lower. Some lower end flats are more expensive than ever I was shown one which was supposedly a good deal and it was more expensive and lower quality than the properties I was looking at in Q1 of this year. It has £25k knocked off but it was never worth that its not even worth its current price imo.

The mid range terraces are down from the mad rush to beat the April deadline but they are at roughly prices of 10 months ago.

So while the bottom of the market is more expensive than ever prices for the terraces and ok homes are just a tad higher than a year ago. Maybe down 5% v what they might have got just before april but really need to see the land reg data before I can even confirm that with confidence.


For now there are no price falls and no good deals.
Lets see what it looks like in two months time

Pincher

Check out the Evening Standard today, Friday 1st July.


Prices are going down.


But, overseas bargain hunters are coming:

http://www.homesandproperty.co.uk/property-news/brexit-london-buyers-pull-out-of-transactions-in-the-wake-of-referendum-result-but-estate-agents-a102346.html

"Since the country voted to the leave the EU on Friday estate agents and mortgage brokers have reported a number of buyers pulling out of transactions – while overseas investors are rushing in to take advantage of the bargains provided by the biggest fall in the value of Sterling for 31 years.

An agent at Chestertons reportedly lost three deals in just over an hour on Friday. Guy Gittins, sales director at Chestertons says: “We lost some deals but we gained new deals because of overseas investors so the net result by end of trading on Friday was about even.”

The-Joker

Pincher wrote: »

Check out the Evening Standard today, Friday 1st July.


Prices are going down.


But, overseas bargain hunters are coming:

http://www.homesandproperty.co.uk/property-news/brexit-london-buyers-pull-out-of-transactions-in-the-wake-of-referendum-result-but-estate-agents-a102346.html

"Since the country voted to the leave the EU on Friday estate agents and mortgage brokers have reported a number of buyers pulling out of transactions – while overseas investors are rushing in to take advantage of the bargains provided by the biggest fall in the value of Sterling for 31 years.

An agent at Chestertons reportedly lost three deals in just over an hour on Friday. Guy Gittins, sales director at Chestertons says: “We lost some deals but we gained new deals because of overseas investors so the net result by end of trading on Friday was about even.”

Only the uneducated would try to catch a falling knife, the smart foreign UK property are trying desperately to sell now before the £ is even lower, and then lower again.