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Home buyers: be very careful!
macaque_2
Posts: 2,439 Forumite
Properties on offer through estate agents are looking increasingly like a false market. Home owners are attempting to sell at bubble prices. To be fair, a few unwary buyers who have failed to follow events in lending markets are still being suckered in. The numbers of these sales however are falling like a stone.
Auction results are a better indicator as committed buyers and sellers come together to determine a fair market price. If the property sells, it has been valued at a fair market price. If it doesn't, the reserve price does not reflect the true market value. In recent weeks properties have been selling at discounts of up to 40% in auction (see recent telegraph article). Even more revealing however are the properties which fail to sell:
http://www.pattinson.co.uk/public/content/Auctions/AvailableAuctionResults.aspx
September 2007
Sold 32.6%
Unsold 66.6%
Withdrawn 0.7%
Look how this contrasts with a year earlier!
October 2006
Sold 63%
Unsold 9%
Withdrawn 28%
Buyers; think before you make an offer! Is the price in the window realistic?
Auction results are a better indicator as committed buyers and sellers come together to determine a fair market price. If the property sells, it has been valued at a fair market price. If it doesn't, the reserve price does not reflect the true market value. In recent weeks properties have been selling at discounts of up to 40% in auction (see recent telegraph article). Even more revealing however are the properties which fail to sell:
http://www.pattinson.co.uk/public/content/Auctions/AvailableAuctionResults.aspx
September 2007
Sold 32.6%
Unsold 66.6%
Withdrawn 0.7%
Look how this contrasts with a year earlier!
October 2006
Sold 63%
Unsold 9%
Withdrawn 28%
Buyers; think before you make an offer! Is the price in the window realistic?
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Comments
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Would LOVE to buy a property at auction but as I need a mortgage, and the deal has to be done in 4 weeks if you do buy at auction (and no matter what anyone says, getting survey etc, and lendor to agree, and solicitors to work double quick) is nigh on impossible in 4 weeks.
Hence, whilst v interesting, the majority of buyers (FTB's especially) cannot include auctions in their search and so micc out on this and fall prey to EA's and vendors attempts to keep the market bouyant.
My personal experience is that proces in my area are begiing to stagnate and even drop w bit,.. so I to would say to buyers, specifically FRTB's, .. don;t rush!!!0 -
Would LOVE to buy a property at auction but as I need a mortgage, and the deal has to be done in 4 weeks if you do buy at auction (and no matter what anyone says, getting survey etc, and lendor to agree, and solicitors to work double quick) is nigh on impossible in 4 weeks.
Hence, whilst v interesting, the majority of buyers (FTB's especially) cannot include auctions in their search and so micc out on this and fall prey to EA's and vendors attempts to keep the market bouyant.
My personal experience is that proces in my area are begiing to stagnate and even drop w bit,.. so I to would say to buyers, specifically FRTB's, .. don;t rush!!!
Auctions are a lead indicator. A few years ago, the prices at auction started to overshoot estate agent sales. What followed was a sustained boom.
One way or another, the recent credit squeeze has changed the landscape. Credit become harder to find and real interest rates have shot up. At the very least one suspects that this will knock the speculative froth out of the market.
The point I was making in the original post is that the auction results seem to be a warning rather than an enticement for buyers.0 -
Crikey there's a place that didn't sell that I could buy for cash if it comes up again. Probably means it's in a really run down area.
Are you from the NE, Macaque?"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Actually there are a few places there we could buy for cash...... although it would be a bit of long commute to be fair.....Mortgage debt - [STRIKE]£8,811.47 [/STRIKE] Paid off!0
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For you maybeActually there are a few places there we could buy for cash...... although it would be a bit of long commute to be fair.....
If you can afford somewhere for cash up here, why not move up here. Yes, you'll take a salary hit, but on the other hand you'll be mortgage free."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Auction results are a better indicator as committed buyers and sellers come together to determine a fair market price. If the property sells, it has been valued at a fair market price.
yeah righto, basically most are forced to sell, and auctions generally have a much lower proportion of buyers who are as mentioned in better positions than the average buyer (who needs a mortgage, etc) so not really going out the full market.
so hardly a true comparison to normal sales, but granted would be interesting to see what like for like is on auction sales though0 -
If you can get a job at all.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0
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Keep clutching those straws CB.
dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
Guy_Montag wrote: »If you can afford somewhere for cash up here, why not move up here. Yes, you'll take a salary hit, but on the other hand you'll be mortgage free.
Yes. A 100% salary hit!Mortgage debt - [STRIKE]£8,811.47 [/STRIKE] Paid off!0 -
Yes. A 100% salary hit!
I presume if you can't do an identical job up here you can do something similar or, alternatively, start a business. If there's one thing the NE needs it's entrepreneurs."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0
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