property sellers will still need to drop prices despite rate cut - Rightmove

geoffky

K property sellers will still need to drop prices despite rate cut - Rightmove
LONDON (Thomson Financial) - Those who are planning to sell property in the UK will still need to drop their asking prices in order to tempt buyers, despite the Bank of England's decision to cut interest rates by a quarter point to 5.50 pct, according to property website Rightmove.

"There is still a rump of unsold, overpriced and unaffordable property on the market... and sellers of these properties must not think the drop in interest rates means they do not have to drop their asking prices," said Miles Shipside, Commercial Director of Rightmove.

Rightmove welcomed the central bank's decision, however, saying it has "taken an opportunity to undermine the growing wall of negative sentiment".

"An active housing market is an important element of the economy, and potential home movers have been waiting to see hard evidence that interest rates are on a downward trend," Shipside said.

Another property website, Hometrack, similarly welcomed the move, saying it will "provide a much needed boost to confidence" to the housing market, but they still believe that the downtrend in house prices is set to continue.

"Despite the potential boost to market sentiment, buyers are still going to remain price sensitive and this will result in a continuing slowdown in house price inflation over 2008," said Richard Donnell, director of research at Hometrack.

He also warned that the effect on actual mortgage rates of the quarter point BoE bank rate cut is "likely to be muted for many customers".

"The impact will primarily support market activity rather than having any effect on house prices," he said

pinkshoes

If people WANT to sell their houses, then obviously they'll have to drop the price until they can find a buyer, but don't forget that if prices do drop, alot of people will just make do with what they've got instead of moving, leaving only those who HAVE to sell forced to drop their prices.

I know many people, if they HAD to move, who would now consider renting their property out, and renting elsewhere in the country rather than selling in an unstable market.

A house price correction/crash won't necessarily mean a market flooded with cheap property, as lots of people appear to think. It could also mean a market with very few properties up for sale, but a massive increase in properties to let, and people wanting/needing to rent.

I don't think the rate cut will make much difference to the current housing market.

dolce_vita

pinkshoes wrote: »

If people WANT to sell their houses, then obviously they'll have to drop the price until they can find a buyer, but don't forget that if prices do drop, alot of people will just make do with what they've got instead of moving, leaving only those who HAVE to sell forced to drop their prices.

Which, in effect, drops the prices of the other houses whetehr people want to sell them or not.

A house price correction/crash won't necessarily mean a market flooded with cheap property, as lots of people appear to think.

The "lots of people" are correct. a correction/crash means just that.

I don't think the rate cut will make much difference to the current housing market.

At last, a sensible comment.

1 out of 3

"must try harder"

geoffky

well 8 months later and still a million for sale on rightmove and another million just lying empty...and the market is now flooded with cut price houses in fact most where i live have had to cut and still are cutting and cuttting and praying.
good this crash isnt it..come the winter i am going to enjoy it more and more.ps wont lose my job because i dont have one..

Alfie1999

I've just sold my house for £212,500 which has chopped the legs off sellers on our estate with identical houses on at between £230k and £250k who've not sold for months.

I wanted to get in first rather than someone else cutting their price and then me having to beat that as the slide starts.

SquatNow

Alfie1999 wrote: »

I've just sold my house for £212,500 which has chopped the legs off sellers on our estate with identical houses on at between £230k and £250k who've not sold for months.

I wanted to get in first rather than someone else cutting their price and then me having to beat that as the slide starts.

This is what weve been advising people to do for a while.

SquatNow

geoffky wrote: »

well 8 months later and still a million for sale on rightmove and another million just lying empty...and the market is now flooded with cut price houses in fact most where i live have had to cut and still are cutting and cuttting and praying.
good this crash isnt it..come the winter i am going to enjoy it more and more.ps wont lose my job because i dont have one..

Wait until the big house builders start trying to slash their stocks.

or better still until one of them goes bust and their entire stock goes to auction no-reserve.

westv

Alfie1999 wrote: »

I've just sold my house for £212,500 which has chopped the legs off sellers on our estate with identical houses on at between £230k and £250k who've not sold for months.

I wanted to get in first rather than someone else cutting their price and then me having to beat that as the slide starts.

We are on with two agents and last week when we sold (STC) the losing agent re-listed on Rightmove every property they had with that branch. Is that normal? Not seen it happen before. Individual ones yes but not all of them.

cruella_de_vile

geoffky wrote: »

well 8 months later and still a million for sale on rightmove and another million just lying empty...and the market is now flooded with cut price houses in fact most where i live have had to cut and still are cutting and cuttting and praying.
good this crash isnt it..come the winter i am going to enjoy it more and more.ps wont lose my job because i dont have one..

I'm interested to know why you would take so much pleasure in a price crash

It's a genuine question, I don't spend a lot of time on this board so maybe I have missed something?

mewbie_2

cruella_de_vile wrote: »

I'm interested to know why you would take so much pleasure in a price crash...

In no particular priority order.

1. Schadenfreude.
2. FTB's can buy again.
3. BTL's get burnt so bad they never return.
4. Mewers* have to return their 4 x4's.
5. No more listening to blah blah I made 100k.

That'll do for me, I am sure there's much much more, but you don't really want to know or you wouldn't have to ask the question.

* Mewer - someone who borrows money out of their home, or other properties. The money borrowed is added to the loan. It is a disparaging term.

cruella_de_vile

mewbie wrote: »

In no particular priority order.

1. Schadenfreude.
2. FTB's can buy again.
3. BTL's get burnt so bad they never return.
4. Mewers have to return their 4 x4's.
5. No more listening to blah blah I made 100k.

That'll do for me, I am sure there's much much more, but you don't really want to know or you wouldn't have to ask the question.

So basically the answer is just nastiness? :cool:

BTW - whats a Mewer?