Sellers acting with more savvy?

Jolanta_Nowak

I spoke with two estate agents in my area on Friday and both made the same observation in different ways:

Rather than suffer any kind of huge drop in the value of their 'investment', many potential sellers are simply sitting tight and refusing to market their property.

Both reported higher than usual numbers of sellers withdrawing their properties from sale in recent weeks as news of a possible downward price trend has surfaced.

Surely, if this tendency continues, it would put a significant drag anchor on any 'crash' situation.

mr.broderick

Nah they'll crash no matter what happens now, is that your real name by the way?

rockinrodders

Its the total opposite where I live in a desirable area in North East London. The area is well known for being overpriced. In the last 3-6 months there have been hundreds of houses and flats going up for sale.

I drive around and its maybe 1 in 5 houses.

People are panicking to sell up rather than be stuck in a house they can't really afford to keep but were given the 5-6x salary mortgages a year or 2 ago and bought right at their limit. Now they are not going to make the large gains they hoped for which most owners have experienced in the last 6-8 years. Theres a lot of worried owners with big fat mortgage payments.

I rent because I am moving abroad next year. My landlord has been trying to sell my flat for months. Its been on the market 4 months and nobody has come to view it. He's just dropped the price by £15 grand

mr.broderick

Jolanta_Nowak wrote: »

I spoke with two estate agents in my area on Friday and both made the same observation in different ways:

Rather than suffer any kind of huge drop in the value of their 'investment', many potential sellers are simply sitting tight and refusing to market their property.

Both reported higher than usual numbers of sellers withdrawing their properties from sale in recent weeks as news of a possible downward price trend has surfaced.

Surely, if this tendency continues, it would put a significant drag anchor on any 'crash' situation.

I've noticed from your posts and threads you are very shy at giving your opinion but like to ask the question Jolanta.
What is your position? Are you one of the peeps hoping for a crash or are you mortgaged to the eyeballs aswell?

Zammo

It will be the forced sellers that dictate prices from now on.

EdInvestor

Jolanta_Nowak wrote: »

I spoke with two estate agents in my area on Friday and both made the same observation in different ways:Rather than suffer any kind of huge drop in the value of their 'investment', many potential sellers are simply sitting tight and refusing to market their property.

Both reported higher than usual numbers of sellers withdrawing their properties from sale in recent weeks as news of a possible downward price trend has surfaced.

Given that it's Christmas/winter and the market is always dead anyway, plus the minor irritant of the HIP requirement, plus the uncertainty,this may well be so.

It makes sense for vendors to wait until the interest rate/credit crunch/mortgage situation is clearer in a couple of months' time. Around February is a much better time to market anyway, not now.At this time of the year you will generally only have sub-optimal leftover properties that didn't sell in the prime season up for sale and bargain hunter buyers going round making silly offers.

So why bother?

gps_2

EdInvestor wrote: »

Given that it's Christmas/winter and the market is always dead anyway, plus the minor irritant of the HIP requirement, plus the uncertainty,this may well be so.

It makes sense for vendors to wait until the interest rate/credit crunch/mortgage situation is clearer in a couple of months' time. Around February is a much better time to market anyway, not now.At this time of the year you will generally only have sub-optimal leftover properties that didn't sell in the prime season up for sale and bargain hunter buyers going round making silly offers.

So why bother?

i agree with you, you seem to post sensible answers.

mr.broderick

EdInvestor wrote: »

Given that it's Christmas/winter and the market is always dead anyway, plus the minor irritant of the HIP requirement, plus the uncertainty,this may well be so.

It makes sense for vendors to wait until the interest rate/credit crunch/mortgage situation is clearer in a couple of months' time. Around February is a much better time to market anyway, not now.At this time of the year you will generally only have sub-optimal leftover properties that didn't sell in the prime season up for sale and bargain hunter buyers going round making silly offers.

So why bother?

Are you on the same planet as me ed? Are you suggesting that come february all will be well again with hpi? If you really think this you are one disillusioned investor. Wouldn't like you placing my funds.

Generali

Jolanta_Nowak wrote: »

I spoke with two estate agents in my area on Friday and both made the same observation in different ways:

Rather than suffer any kind of huge drop in the value of their 'investment', many potential sellers are simply sitting tight and refusing to market their property.

Both reported higher than usual numbers of sellers withdrawing their properties from sale in recent weeks as news of a possible downward price trend has surfaced.

Surely, if this tendency continues, it would put a significant drag anchor on any 'crash' situation.

This is what tends to happen at times like this. Unhurried sellers see no good reason to take a loss (or reduced profit) on their existing place, buyers aren't prepared to pay what's being asked because forced sellers are getting a lot less. This leads to an impasse in the market.

What happens next could be that more and more sellers become forced as the 100 mile commute to the new job or sharing a 1 bed flat with the twins takes its toll for example or simply that reposession looms ever larger on the house that was just a bit too much of a stretch. This is what happened in the late 80s/early 90s.

Alternatively, demand could rise to meet supply again as happened in 2005.

One way or another the impasse can't last forever. If you think demand will rise again, you might be able to use the current situation as a buyer to get a little extra discount or get the seller to chuck in a few more bits. As a seller you just hang on and wait for it to pass.

On the other hand, if you don't see demand rising in the near future, put off buying and bring forward selling if you can.

Remember, demand isn't 'The number of people that want to buy something' it's 'The number of people willing and able to buy at any given price'.

abaxas

Only time will tell if they have been 'savvy' or 'stupid'.

Just remember that the value of your property is based on the lowest common denominator. Ie the price of property bought by FTBs or more recently BTLers.

If these people can buy again, the prices of these properties rise, hence all properties will rise.

If they cant buy (as it is currently) OP's sellers will be about as 'savvy' as Gary Glitter with computers.

twhurl

Interesting around my way, people who want to sell have dropped and they have all been sold now. Others waiting it out at high prices are still on the market. Some top quality well lcated have sold at quite quicly seemingly without discount
Ive noticed new properties coming on the market are at the peak prices so lately people are betting it will pick up