What we feared, happened. Buyer reduced agreed price.

blue_max_3

This is the first time for many years that house prices have faced any downward pressure. With interest rates so low and the outlook for the stock market far from positive, there is certainly an appetite for property. And as property has risen so much, there is a huge amount of equity built up. The market doesn't change very rapidly in general and if it appears to drop too much, people will sit tight. Those that have to sell, may offer opportunities, but they probably won't account for too big a segment of the market. And there is likely to be keen interest to limit the drops.
But, we'll have to see of course.

MobileSaver

graphs said:

 Sit back and watch the graphs, I know which way they will be going

So do I and I know your predictions are pure fantasy.

MobileSaver

blue_max_3 said:

The market doesn't change very rapidly in general and if it appears to drop too much, people will sit tight.

One of the problems for Crashy, graphs and many of the HPC crowd is that they don't own their own home so they simply don't understand the emotional attachment. To them a house is an inanimate object like a second hand DVD and so in their heads sellers should just be thankful for whatever price someone offers them; this is what leads to the absurd "Lower your offer by 20 to 30k" comments.

As you say, back in the real world most people simply decide that they won't accept insulting offers for their beautiful home and they don't need to sell so they'll just wait it out until offer prices are attractive enough again. As has been said many times, if you want to know who will own property after an economic downturn then take a look at who owns it before!

Jumblebumble

MobileSaver said:

blue_max_3 said:

The market doesn't change very rapidly in general and if it appears to drop too much, people will sit tight.

One of the problems for Crashy, graphs and many of the HPC crowd is that they don't own their own home so they simply don't understand the emotional attachment. To them a house is an inanimate object like a second hand DVD and so in their heads sellers should just be thankful for whatever price someone offers them; this is what leads to the absurd "Lower your offer by 20 to 30k" comments.

As you say, back in the real world most people simply decide that they won't accept insulting offers for their beautiful home and they don't need to sell so they'll just wait it out until offer prices are attractive enough again. As has been said many times, if you want to know who will own property after an economic downturn then take a look at who owns it before!

The other issue is that HPC and the like  have been confidently predicting a huge drop in house prices for at least the last 10 years or more.
There must be thousands of people who have put off buying and are still renting waiting for this Nirvana who would have paid off a good amount of their mortgages if they had ignored HPC in 2010.
 I count myself fortunate not to be amongst these unfortunates

Ozzuk

MobileSaver said:

blue_max_3 said:

The market doesn't change very rapidly in general and if it appears to drop too much, people will sit tight.

One of the problems for Crashy, graphs and many of the HPC crowd is that they don't own their own home so they simply don't understand the emotional attachment. To them a house is an inanimate object like a second hand DVD and so in their heads sellers should just be thankful for whatever price someone offers them; this is what leads to the absurd "Lower your offer by 20 to 30k" comments.

As you say, back in the real world most people simply decide that they won't accept insulting offers for their beautiful home and they don't need to sell so they'll just wait it out until offer prices are attractive enough again. As has been said many times, if you want to know who will own property after an economic downturn then take a look at who owns it before!

Very well said.  The other issue is their comments are driven by an agenda - they want to buy your asset for as little as possible, rather than they are trying to protect you from a crash.  Happily enough people on here pull them up on it.  And who knows, they may be right at some point if they keep saying it for long enough.  I know I wouldnt be buying the house I'm getting now if I hadn't bought/sold many properties over the years instead of renting (though nothing wrong with renting).

numbercruncher8

Just seems quite strange that people make their opinion reflect the rest of the market.

Prices have declined quite a lot in some areas. In London and surrounding areas I see many places already 10% off the peak, and that was prior to this. In other areas, the prices are robust and have showed no signs of decreasing. Some places may be immune to any correction altogether.

Someone posts a message asking advice on here..... with no further details 'lower your offer by 20K, prices are falling' is about as idiotic as 'if I were the seller I'd tell you to get lost, prices are gonna stay the same'.

Just seems to me that once someone is on one side of the fence they cannot accept that what they don't want to happen may be happening in other areas of the country. Price increases affected some areas disproportionately, it'll be the same with price decreases.

I've owned a home, and I didn't have an emotional attachment to it. Having had an elongated selling process I would say that what is more absurd is holding an original price and refusing to cut despite getting no offers in that region. But it depends on individual circumstances. If I were to preach my viewpoint as being representative of the whole market, I would be called out as an idiot like Crashy, doesn't seem to apply the other way.

shinytop

numbercruncher8 said:

Just seems quite strange that people make their opinion reflect the rest of the market.

Prices have declined quite a lot in some areas. In London and surrounding areas I see many places already 10% off the peak, and that was prior to this. In other areas, the prices are robust and have showed no signs of decreasing. Some places may be immune to any correction altogether.

Someone posts a message asking advice on here..... with no further details 'lower your offer by 20K, prices are falling' is about as idiotic as 'if I were the seller I'd tell you to get lost, prices are gonna stay the same'.

Just seems to me that once someone is on one side of the fence they cannot accept that what they don't want to happen may be happening in other areas of the country. Price increases affected some areas disproportionately, it'll be the same with price decreases.

I've owned a home, and I didn't have an emotional attachment to it. Having had an elongated selling process I would say that what is more absurd is holding an original price and refusing to cut despite getting no offers in that region. But it depends on individual circumstances. If I were to preach my viewpoint as being representative of the whole market, I would be called out as an idiot like Crashy, doesn't seem to apply the other way.

That's uncalled for and against the rules of this board.  IMO Crashy is not an idiot, s/he is a campaigner and actually a very good one.  

fewcloudy

graphs said:

MobileSaver said:

graphs said:

But, but, but house prices wont fall. Supply and demand etc etc

But, but, but you said house prices will be down 30-40%, how could you get it so wrong? It's almost like it is just wishful thinking on your part and you haven't really got a clue?

We are at the very, very start of this crisis. Sit back and watch the graphs, I know which way they will be going

No, actually, you don't.

dani17

I don't think that there is anyone expecting a price increase in the coming months. the question is how much will be the drop? it can be a non significant number between 0% and 2%  or it can be much bigger. So, if anyone has a prediction please give us a number .
Comparing the current market situation with what happened in 2008 may not be correct. In 2008, we where already in a bull market which means that even with 15% drop we found ourselves in the same situation in 2006 ( 2 years ago). Now, prices are stagnating since 2016 which means that a such correction will be much harder to happen because it will send us 6 or 7 years ago.

welwynrose

MobileSaver said:

blue_max_3 said:

The market doesn't change very rapidly in general and if it appears to drop too much, people will sit tight.

One of the problems for Crashy, graphs and many of the HPC crowd is that they don't own their own home so they simply don't understand the emotional attachment. To them a house is an inanimate object like a second hand DVD and so in their heads sellers should just be thankful for whatever price someone offers them; this is what leads to the absurd "Lower your offer by 20 to 30k" comments.

As you say, back in the real world most people simply decide that they won't accept insulting offers for their beautiful home and they don't need to sell so they'll just wait it out until offer prices are attractive enough again. As has been said many times, if you want to know who will own property after an economic downturn then take a look at who owns it before!

When we bought our house in December we could have afforded the full asking price but the house had been on the market for nearly 9 months so we made a cheeky low offer initially but when that was rejected we spoke to the owner and found out what his bottom line was we then went back and offered him his bottom line but with £5k of it being a direct payment for “fixtures & fittings” we ended up getting the house for £40k less than the original asking price