? Estate Agents price cut ....

bukup

nobblyned wrote: »

The market will provide the decreases in price, rather than the EAs.

If properties don't sell because of the market, then EAs won't get their commission, and will be then advising their clients to reduce their prices to get the sale.

For the record, the last crash saw nominal decreases of about 14-18% from peak to trough and took around 5-6 years to bottom out.

At the bottom of the cycle interest rates were still well over 6.5%, with mortgage rates around 8%. If there are price decreases and interest rate cuts, buyers could be quicker to come back to the market then last time when the memory of 15% interest rates was still fresh, particularly if there are IR cuts later this year or early next.

It will take one agent to make the move,the others WILL follow.

Running_Horse

bukup wrote: »

I work in a solicitors conveyancing department so have the best interest of all parties involved.

How very noble of you.

bukup

Running_Horse wrote: »

How very noble of you.

Thankyou,there are not many of us that actually care about all parties interests left....!

nobblyned

bukup wrote: »

It will take one agent to make the move,the others WILL follow.

Its not the same as Shell vs BP petrol prices! Things will be slow (months/years) and intransparent.

bukup

nobblyned wrote: »

Its not the same as Shell vs BP petrol prices! Things will be slow (months/years) and intransparent.

it did not take years for the market to rise in the manner it has....

nobblyned

bukup wrote: »

it did not take years for the market to rise in the manner it has....

err, yes it did. Has been rising since 1992/1993.

bukup

nobblyned wrote: »

err, yes it did. Has been rising since 1992/1993.

thankyou ...exactly,and falling

nobblyned

bukup wrote: »

thankyou ...exactly,and falling

The market hasn't fallen year on year since around 1992-5, so not quite sure what point you are trying to make.

Prices have been rising since at a rate of between 5 and 25% per annum since then. The highest rates of increase were in late 2002/early 2003, the rates have been less lately (save for London and NI).

So it has taken years for the market to rise in the manner that it has, and any crash will be long and protracted.

pinkshoes

bukup wrote: »

IF agents just took a realistic view in the first instance and marketed the property at a true value, then the whole market would be better now

Value of House = (Cost of bricks&mortar + desirability of area of property + Number of people wanting to buy it) * Level of mortgage that these people can afford.

You can't just generalise house prices, as it depends on SO many factors. House prices may drop in one area, but in others we'll probably see them continue to rise.

Besides, if house prices were to drop 40%, although there'd be lots of properties valued at low affordable prices, there'd be very few people willing to sell, either due to negative equity, or people wanting to hold onto the property then selling when they reach retirement age. (providing interest rates don't rocket and people can continue to pay their mortgage - but no sign of big rate rises yet!)

Hmmm, then won't that go round in circles again, because if we have very few properties on the market, and lots of people who have been waiting for this market to crash, could create bidding wars to see prices rocket again!

bukup

pinkshoes wrote: »

Value of House = (Cost of bricks&mortar + desirability of area of property + Number of people wanting to buy it) * Level of mortgage that these people can afford.

You can't just generalise house prices, as it depends on SO many factors. House prices may drop in one area, but in others we'll probably see them continue to rise.

Besides, if house prices were to drop 40%, although there'd be lots of properties valued at low affordable prices, there'd be very few people willing to sell, either due to negative equity, or people wanting to hold onto the property then selling when they reach retirement age. (providing interest rates don't rocket and people can continue to pay their mortgage - but no sign of big rate rises yet!)

Hmmm, then won't that go round in circles again, because if we have very few properties on the market, and lots of people who have been waiting for this market to crash, could create bidding wars to see prices rocket again!

this is obviously dictated depending on what area you are in ,yes there are many factors.But blaintant overvaluing of properties does not help.