Housing market continues to slow....

KrazyFool

so from 250-275 it would sell for 249. What about the 276-500 area, surely theres got to be another cut off point in between, not all houses in the 3% range can be pushed to 1%.
i need to work out something, i could offer 249 for a 290 house but i thought most people these days werent in a rush to sell but just to make money out of the situation. If they arent in a rush theyre going to say no to a stupid offer...!!!!!! mind games...

KrazyFool

ok as house prices may be going down, i put an offer in, it takes awhile to sell mine, several months down the line i still have to pay that same price even though it probably has gone down?

Woby_Tide

if the sellers are prepared to wait several months then yes you'd be paying the same amount technically. Though in reality it's unlikely to happen as a) they probably wouldn't have waited that long and b) if your place goes down in value you're unlikely to be wanting to fork out a lot more for the the new place

meanmachine_2

KrazyFool wrote:

ok as house prices may be going down, i put an offer in, it takes awhile to sell mine, several months down the line i still have to pay that same price even though it probably has gone down?

Or you could sell first, rent on a short term let then re-enter the market as a new buyer. Might make your task easier. Meantime your equity is building up in the bank.

A lot of people are doing it at the moment.

Kenny4315

Krazyfool the next threshold for your interest is £500k when stamp duty rises from 3% on the purchase price to 4%, don't sound much but on a £500k house that's £20k on stamp duty alone.
On the subject of houses around the £250k mark, if the house is really worth around £250k it tends to be marketed at £265 -270k ish mark, that way the buyers force the price to £250k for stamp duty, there happy and the sellers happy, normally houses marketed above the £270k mark are expected to sell above £250k, at £290k you'd be lucky to get it for less than £275k, but if the market falls just slightly say 10% then your in with a good shot a getting it for less the £250k.

ReportInvestor

I just noticed that our favourite thread had slipped to page 2 :eek: so thought I'd take remedial action .

This story sums up some of the chasm between the different parties to the debate.

The Evening Standard

A tale of two different indicators

"..............Yesterday, property website https://www.Rightmove.co.uk claimed that it will take seven years for salaries to reach the level required for buyers to afford average-priced properties. Only after such a period of static house prices and rising wages, would the affordability gap be bridged.

But Gray says: 'Much has been made of the current house price to earnings ratio being at a record 6.32, up from 4.9 in the housing recession at the beginning of the 1990s and the similar levels seen at the beginning of 2002 when our data set began.'

'However, our data shows the increase in the mortgage burden has been slower and reached less dramatic levels than the ratio would suggest, growing from 15.6% of after tax earnings to 18.5%. This also indicates that nationally the cost of servicing a mortgage is still affordable for most...............'

meanmachine_2

Maybe the second "expert" can explain why the economy has ground to a halt after a tiny rise in IR rates?

Also, let's not forget the huge unsecured personal debts that weren't around in 1989, plus council tax and fiscal drag - putting ever more people into the top rate of tax.

When I was a kid, I didn't know anyone who paid the top rate of tax, now everyone seems to be lumbered with it.

Finally, didn't the govt recently release a report in which people have LESS disposable income than they did a year ago?

Also, let's isolate these groups and look at the mortgage burden on those who bought in the last 3-4 years. I think moneyweek revealed that the mortgage burden on those people is something like 40% of after tax income, and rising.

That explains why the economy is dead in the water right now.


Anecdotal: but I have friends whose mortgages (I/O) are over 50% - yes FIFTY percent of take home pay. And these people -t he younger generation - are the ones who drive the economy, not moneyed elderly people without mortgages.

John_M_Business

Reporter wrote:

I just noticed that our favourite thread had slipped to page 2 :eek: so thought I'd take remedial action .

Perhaps it has found its rightful place... let it die in peace...

We're all talked out on this. Let's see what the market does / doesn't do.

meanmachine_2

John_M_Business wrote:

Perhaps it has found its rightful place... let it die in peace...

We're all talked out on this. Let's see what the market does / doesn't do.

*Left speechless* But I....what would I...I now have nothing to talk about...or bang on about endlessly.

And with at least 8 different house price indicators (although I think there should be at least one for every day of the month), it does seem difficult to let it lie.

No, I agree. Even I'm getting bored of it all now, even though the market does *seem* to be going in the right direction (for me).

It's just too damn hot to even think about property. Wake me up when September comes.

GreenB_2

I agree with J_M_B!

How many more times is the sme thing going to be discussed.....As it stands prices are still increasing - though at a slow pace.