prices aint budging

phil_b_2

Has anyone else noticed that since the nationwide figures were released and splashed all over the media, that sellers seem to have battened down the hatches?

I monitored property bee for a few weeks on the run up to that information and it seemed about 5 houses were getting reduced (to varying degrees) each day in the area I was looking, but since then I think only 1 has been reduced .

They appear to have decided 2.5% is more than enough and have shut up shop. I was hoping for a bit of panic but it seems the fight back begins?!!!

3under3

The housing market has stagnated, 40% volume drop predicted by the end of the year, anecdotals of EA's suffering much larger falls than that..

The 2.5% figs are based on much fewer property sales. Probaby most of the sales are happening where the seller has reduced accordingly or undercut the market, hence the monthly drop. Those that are not dropping and are not priced realistically are not selling. Sellers can batten down the hatches all they want but they won't find a buyer that way...

hostman

Jesus, not ANOTHER thread with someone suggesting the "fight back" has begun?

Fight back to what? Ever increasing and unsustainable debt levels?

I have almost 400 properties saved on Rightmove for my local area (Luton), all properties I would consider viewing / buying as a first time buyer up to £160k and I see up to ten reductions EVERY DAY.

Why would sellers suddenly hang on even more and why would buyers suddenly begin offering asking prices with the amount of bad news we have coming out daily about the housing market, mortgage market and generally worsening economy?

The BBC do this all the time with their uneducated "business correspondents". They interview someone who is supposed to be a fore most expert in their chosen field, who says something like "Oil went down 0.0001c today, we're all saved" and then the BBC correspondent picks up on it and says "so there we go, Oil is getting cheaper, so we could see cheaper petrol prices".

It is ridiculous and so is this thread.

moanymoany

I don't think this thread is 'ridiculous' hostman, it is an interesting observation. There are still many properties I'm looking at that are not changing price, and have been lingering for months.

It seems to me that some sellers are clinging to the wreckage muttering 'but I know my house is worth the money' as they keep their lonely vigil.

I saw a property near where I'm looking that suddenly appeared not under offer and £15k - 7.5% cheaper. I phoned the agent and the property developer/builder who was going to buy it had said they couldn't complete for 3 months. The seller has seen and paid a deposit on a house he wants.

She asked what I was prepared to pay and said he won't go down any more that £5k max. She also said that at it's new price it should be gone over the weekend. It is good value and I am going to watch it's progress.

skap7309

Kinda noticed this to. Nestoria average house prices for my town have gone UP in the last 2 months the latest being a 1.8% increase. Last month was a 1.2% increase.
Fair enough 2 beds dropped a massive -4.4% in May (the ones im interested in) but 2 months of overall rises? What are sellers thinking?

MissMoneypenny

Buyers won't or can't pay what sellers want/need. Nobody wants to buy a property when it is falling in value. Buyers who contact these firms that buy the house quickly, are being offered 2001 prices.Look on the sellers forums.

Even if sellers get a buyer, they could have the offer drastically reduced just before exchange of contracts. I just read of one seller who had their offer reduced by 45k on a property they had agreed a 215k price. The seller said they had originally marketed the property at 235k. The EA told them that if he were to market the property now, he would put it on at 185k. This seller offered their buyer 7.5k off, but the buyer immediately pulled out without any further negotiation.

Others sellers that are lucky enough to have offers made and asked to think about it overnight, have found that when they phone their EA the following morning they are told that the offer has been withdrawn as another seller accepted their offer. So it seems buyers are multi offering.

Many other sellers are saying they don't get viewers or viewers don't turn up to their appointment. Others get viewers straight after they threaten to change EA if they don't get viewers.

Pete0926

Some sellers who are not desperate to sell, are either just leaving them at or near original price, or withdrawing from the market.We have just put our house on the market at 10 percent below valuation, but we are not desperate, we have a bottom line and will stick to it.

MissMoneypenny

Pete0926 wrote: »

Some sellers who are not desperate to sell, are either just leaving them at or near original price, or withdrawing from the market.We have just put our house on the market at 10 percent below valuation, but we are not desperate, we have a bottom line and will stick to it.

At least you are being realistic in trying to get viewers. Some sellers want what the house over the road sold for last summer.

Why spend out on a HIP if you aren't bothered about selling?

pickles110564

hostman wrote: »

I have almost 400 properties saved on Rightmove for my local area (Luton), all properties I would consider viewing / buying as a first time buyer
It is ridiculous and so is this thread.

Oh I see, you are a desperate FTB that has just had the penny drop and realised that what Broders and I have been saying all along is correct.
It is up to the seller what price they want for their home not what the doom mongers are trying to scare them into thinking what is happening.
Just because someone posts something you,!!!!!!?,Carolt does not like you throw your toys out of the pram.
Get real the green shoots are poking through.

Pete0926Some sellers who are not desperate to sell, are either just leaving them at or near original price, or withdrawing from the market.We have just put our house on the market at 10 percent below valuation, but we are not desperate, we have a bottom line and will stick to it.

Well done mate, you are exactly what we have been talking about a sensible seller putting their home on for its value.

moanymoany

pickles110564 wrote: »

Oh I see, you are a desperate FTB that has just had the penny drop and realised that what Broders and I have been saying all along is correct.
It is up to the seller what price they want for their home not what the doom mongers are trying to scare them into thinking what is happening.
Just because someone posts something you,!!!!!!?,Carolt does not like you throw your toys out of the pram.
Get real the green shoots are poking through.


Pickles, what makes you think the 'green shoots' are poking through? Maybe I'm looking and only seeing what I want to see as we are going to buy in six months.

kristianwilliams

I've been away busy (doing some pretty impressive things :P ), but I've checked these threads now and then.


Basicly the argument boils down to

1) My house is worth x, and I wont sell it for less.
2) I can borrow y and I cant afford to pay more.
3) I have z available in my property at the moment
(y+z)=/=x

Problem.

People that can x=(y+z) will be fine, will be able to pay these prices. So the top half of the market will still be solvent. Its the bottom half thats the problem.

The top half may have been scare mongered to drop their prices quickly and sharply. Does not mean they were not over valued in the first place. Using the argument that the drop in price is down to one single irregularity in a market is not valid. Kind of linking "everyone who eats bread dies" although true, the correlation is not the primary connection.

Being hit by a car may also have an effect on dieing, the fact the person also ate bread is secondary.

House prices were over inflated (I dont think anyone is arguing with that), The rate of increase was unsustainable by the economy. What causes it to slow/stop/crash/correct is more than one factor, although the media may have increased the rapid decline, it was not the only/single factor.