Have viewings slowed or stopped?

trulysaintly

Rover wrote: »

You're in denial Truly, see my sig.

You seem very naive for a mortgage advisor, I presume you are relatively young? Did you have a mortgage or a job in the early ninties?
My house, bought at the peak in the early ninties lost ~30% upon resale in 1999/2000. Another house I owned appreciated ~90% from 2000-2006.

As others have said, expect this 'correction' to last several years. Almost all property will be effected by atleast double digit depriciation.
I genuinely believe the average UK propery price will fall by more than 25% by 2011/12. Furthermore, people far brighter and with more savvy than ourselves, also believe this.

Trust me, 25% is a conservative estimate. Don't be blinkered and don't be a victim.

Thanks for your concern Rover but over 13 years worth of experience as a Mortgage Adviser tends to stand me in good stead.

Just a question to you though...refresh my memory, what were the levels of Interest Rates in the late eighties/early nineties???

12%? Just a guess from my young mind (I'm 33 by the way).

So, you can't compare then with now.

Yes, property values have increased dramatically over the last 10 years, but house prices also continued to grow when Base Rate peaked again at 5.75% - so with interest rates now reducing again, what do you think will happen??

You may call me naive, but I've got plenty of market experience behind me and I've worked with enough successful businessmen and women who call on my experience.

Don't believe everything you read in the press - they have to sell newspapers somehow......ever wondered why surveyors are always the first to give soundbites?? Nothing like a vested interest....much like me you'll probably say!

Rover

trulysaintly wrote: »

Thanks for your concern Rover but over 13 years worth of experience as a Mortgage Adviser tends to stand me in good stead.

Just a question to you though...refresh my memory, what were the levels of Interest Rates in the late eighties/early nineties???

12%? Just a guess from my young mind (I'm 33 by the way).

So, you can't compare then with now.

Yes, property values have increased dramatically over the last 10 years, but house prices also continued to grow when Base Rate peaked again at 5.75% - so with interest rates now reducing again, what do you think will happen??

You may call me naive, but I've got plenty of market experience behind me and I've worked with enough successful businessmen and women who call on my experience.

Don't believe everything you read in the press - they have to sell newspapers somehow......ever wondered why surveyors are always the first to give soundbites?? Nothing like a vested interest....much like me you'll probably say!

Why the red font, very apt though.

The old chestnut of relatively low interest rates eh? So why ask Melvyn to reduce then?
The relevant comparison is house price v earnings. If I had time I could dig out some info.

As inferred, carry on staggering and believing...........

granville_2

trulysaintly wrote: »

Thanks for your concern Rover but over 13 years worth of experience as a Mortgage Adviser tends to stand me in good stead.

Just a question to you though...refresh my memory, what were the levels of Interest Rates in the late eighties/early nineties???

12%? Just a guess from my young mind (I'm 33 by the way).

So, you can't compare then with now.

Yes, property values have increased dramatically over the last 10 years, but house prices also continued to grow when Base Rate peaked again at 5.75% - so with interest rates now reducing again, what do you think will happen??

You may call me naive, but I've got plenty of market experience behind me and I've worked with enough successful businessmen and women who call on my experience.

Don't believe everything you read in the press - they have to sell newspapers somehow......ever wondered why surveyors are always the first to give soundbites?? Nothing like a vested interest....much like me you'll probably say!

I believe we have got to point where interest rates have become irrelevant.

Wage growth has not kept pace with the cost of living.

With your worldly 33 years of wisdom and market experience, you will no doubt be aware of the state of the Japanese economy over the last decade and a half, which has had interest rates hovering around the 0% mark.

Japan still makes things, whereas we have been selling houses to each other at ever increasing prices and fooling ourselves into believing that it is making us all richer.

We've been sold the lie of 'no more boom & bust'.

The UK is in for a bumpy ride.

BobProperty

I made the point about the forums I go on because I join in on several in the US which have an interest in property and land use. I therefore know more about the US market and system than the average poster on here.

trulysaintly wrote: »

Lenders did not offer 125% loans unless there were good underwriting reasons for doing so. In the US they weren't even bothering to check that people were employed...

We had "liar loans" here.

There is a difference between 'liar loans' and irresponsible lending - the latter was what happened in the US.

You must be in Lala land if you think it didn't happen here. Almost anyone could say they were self employed and made £xx,000 a year and you could find a lender who'd do a deal. Also since when has 5-6 times earnings been responsible lending (unless the borrower was just qualifying in a profession like law or medicine)?

trulysaintly wrote: »

No about 6-8 months...predictions at the moment from analysts are that interest rates will be 3.5% by this time next year - and guess what happened the last time they were that low?????

House prices rose. The housing market is not crashing, it is just correcting in some areas.

It's called a sucker rally, but I'm beginning to doubt if you know what I'm talking about. Please point out any time in the past when house prices fell a few percent then started rising again. There might be one time (early to mid 70s) only problem was the 25% inflation rates around at the time meant massive falls in real terms. Please post back here in a year and tell me how the market is, especially which areas where there hasn't been any "correcting".

mr.broderick

brit1234 wrote: »

A lot of us FTB are waiting for property to come down back to 3.5 times salary. The fact that if we can even get a mortgage over that there is the likelihood of negative equity which is putting us off. On top of that many first time buyers now need deposits, so as much as 25%, it will take a while to save these sums.

Might be a long wait brit just keep saving hard kiddo, will pay off in the end, good luck.

BobProperty

trulysaintly wrote: »

Oh sorry...by the way you won't get a Self Cert mortgage at the moment without your application being underwritten....you may not need to confirm your income but your employer would be contacted to verify your employment...

And more than once I, as my employer, has had to verify my income from my employment.

House prices depend on two things, sentiment and affordability. At present sentiment is negative and affordability is in short supply. Cutting interest rates won't help if mortgages are still x% over libor and staying there irrespective of base rate. As someone else has already pointed out, Japan has had rates around 0% for years and their housing market is still in a state.

tomstickland

Yes, property values have increased dramatically over the last 10 years, but house prices also continued to grow when Base Rate peaked again at 5.75% - so with interest rates now reducing again, what do you think will happen??

You may call me naive, but I've got plenty of market experience behind me and I've worked with enough successful businessmen and women who call on my experience.

You seem to think that interest rates and house price growth are linked in a direct manner.
They can lower rates to 1% but if the lenders are still cautious it won't make high LTV mortgages available.

You've spent 10 years working through one of the biggest growth cycles. We cannot have infinite growth.

angelavdavis

Sadly, I am inclined to agree with the hopeful who wants prices to come back to 3x salary levels.

The fact that many people have made shed-loads on their properties, AND are mortgaged more than 3 x their salary on top to finance their posh pads means that the Banks cannot force the market down to this level - it will simply implode as no one would be able to remortgage.

An update from West Sussex:

OH's 2 bed house went on the market on 4th April and have at least one viewing per week (up to three in one week during half term), we have had two offers one couple - 1st time buyers in the first 3 weeks - the highest being about £15k under asking.

OH bought the house 6 years ago and probably paid top wack for it so as a consequence, it has not shot up in value, in fact at the lower offer, the agent (who sold to OH and is selling house now) would have made more money out of the property than OH!

Of course, the agent suggested "we strongly considered the lower offer" which was made after 2 days on the market (well they would wouldn't they!)

Market/Sale factors:
- We are chain-free
- 2 bed/2 bath house with downstairs loo.
- Garage plus 2 allotted parking spaces
- Pretty mature garden
- Fairly new build (8 years)
- Cul-de-sac
- Neutral decor and decluttered
- lovely rural area (views over Downs) but with restaurant, pub, hairdressers, Co-op, two garages and Post office in village.
- best performing schools in the area
- good commuting to Horsham/Brighton/Chichester
- good council services

So, for us, the problem isn't the viewings - its the offers! The media has convinced them its a buyer market - not if we won't sell for the price it isn't!!! We can easily rent the house out.

tomstickland

But if no one is prepared to buy at the price you want then it is a buyer's market.

angelavdavis

After 4 weeks, I think we're happy to sit it out thanks.