Prices ARE falling!

carolt

Yes, as a potential FTB, it was desperate a few months ago - everything going immediately for inflated prices.

About 2 or 3 months ago, EA'S phoned me about a 'bargain' 3 bed house that was going to disappear immediately, so few houses at that price..... I politely ummed and aahed as I knew the road and didn't really like it and managed to avoid being strong-armed into a viewing.

Last week, same EA phoned me to ask if I was still interested in viewing the house - still on the market and now 'very open to offers'.

Sure, a few nice, reasonably priced houses are still selling quickly. But all the overpriced tat that was flying off the shelves a few months ago is just sitting there. I've noticed new houses coming on are coming on at cheaper prices than their equivalents a few months ago - and where reasonably priced, are selling, albeit slower than before. Which leaves a big glut of overpriced properties put on at the height of the boom just sitting there admiring the view.

nobblyned

People reducing an asking price isn't house prices falling. A house price fall is when an identical (or 'similar' or even 'average') house actually sells for less than a previous one (or ones) had sold for.

If this is repeated rather than isolated then that is house prices falling.

fimonkey

I never said house prices are falling Nobbly, I merely said 'Prices ARE falling' and in this I meant asking prices (apologies for not being clearer in the title of this thread). Now if asking prices are falling, that tells me that vendors need to sell and can no longer over-inflate their asking price. Am I wrong?

nobblyned

I'm not saying you're wrong boss. Could well be the start of something. Maybe falls, maybe stagnation, maybe just slowing growth.

The anecdotal evidence shows that some people can't get as much for their house as they'd hoped. But we will need to wait to see what that translates into in terms of overall prices.

Depends whether it's just a few people or a lot, and how overpriced those asking prices were above the last sold prices.

JJroger

fimonkey wrote: »

I'm a potential FTB in Bournemouth/Poole/Christchurch, deposit, AIP, solicitors all sorted and been looking for a while now so on first name terms with most EA's in the area.

Yesterday two EA's called me, one re a property I'd veiwed which was a 1 bed flat at 150K. The venodrs had dropped their price by 10K!! was I interested now? ("no", as it happens) The second re: a flat I hadn't viewed cos it didn't fit my criteria, but EA asked if I'd view it anyhow, and the vendors had dropped their price by 5K.

Have you seens the flats in Richmond Park Road, Bournemouth, many of them have price droped, some even at Wholesale Price?????

What is wholesale price? no VAT? or only developer allow to buy? Just a funny term to used for properties.

Roger

Mutton_Geoff

I put my flat on the market a couple of months ago. I had five agents round to value it. Three of them suggested £245-250k as a good price to start at, the other two £230k and £200k.

After 4 weeks at £249,950 with not one viewing, I reduced it by £20k to £229,950. Half a dozen viewings, no offers over the last 4 weeks so reduced again to offers on £210k.

I'd had an idea it might be worth the £200k mark but with 3 out of 5 agents putting forward such optimistic prices, I thought I'd be foolish not to try.

With a 16% drop in asking price, I don't view this as "falling prices" but a realistic market and agents who are still too eager to kid themselves. At least I'm getting a good position on Propertysnake!

SquatNow

Try having a look at www.propertysnake.co.uk (Not my site, not a plug, just a good site.)

AFAIK they monitor rightmove prices and track when prices fall.

snake'n'ladders etc.

Not that it's a property ladder it's a property pyramid.

Conrad

All of the sub prime lenders have cut back LTVs such that people with really bad credit are virtually unmortgagble and those with light to medium adverse credit have to find larger deposits.

Furthermore, sub prime rates have gone up by 1 or 2%. This means even a person with medium adverse credit will now face rates of typically 8%+ and remember the ratio of wages to house prices is far more stretched now. See some posters on here starting threads - "my Kensington rate has jumped to 10.9%".

Self cert lending has become much more difficult since the credit crunch ensued.
Income multiples are also affected.

All this means a large chunk of cash has been reoved from the property market.

This could theoretically be replaced by eagre prime borrowers such as B2Lers, but this property - love may be reigned - in if the initial mortgage cash starvation leads to an expectation that a 'wait and see policy' is prudent.

PEOPLE ON THE MARGINS:

Due to the credit crunch the l'oans of last resort' have pretty much gone so those who have repeatedly saved themselves by remortgaging in the last few years will suddenly and unexpectedly find they hit a wall of silance with no way out.

This means more repossessions comming to market which means the prime buyers take an even longer 'wait n see' approach.

BUT........

The BOE dropping rates might be enough to forestall the above unfolding.

Interesting times, unless your a happy - clappy 'properdee only goes up in'it' type.

All of this

baby_boomer

fimonkey wrote: »

I'm a potential FTB in Bournemouth/Poole/Christchurch

Maybe it's those Portman BS anticipated redundancies? They were a major local employer and the merger with Nationwide will have to "work its way through the organisation".

flaura

SquatNow wrote: »

Try having a look at www.propertysnake.co.uk (Not my site, not a plug, just a good site.)

AFAIK they monitor rightmove prices and track when prices fall.

snake'n'ladders etc.

Not that it's a property ladder it's a property pyramid.

Having had a sneaky peek at this the flat i'm looking at the asking price has now in fact dropped by £20k since June !!!! it's only listed on this site as the last drop