Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Jaywood89
    • By Jaywood89 11th Apr 18, 7:27 PM
    • 160Posts
    • 74Thanks
    Jaywood89
    House prices rising by 15-25% in 6 months?! No way!!
    • #1
    • 11th Apr 18, 7:27 PM
    House prices rising by 15-25% in 6 months?! No way!! 11th Apr 18 at 7:27 PM
    So Iíve been watching th housing market in my area for well over 2 years now. What Iíve learned is mostly that it makes no sense what so ever!
    I mean some houses you can see and think ďare you for real asking £xxx for this?, then some you see are so beautiful and you wonder are they mad to mark it so low?Ē

    Iím personally in the process of buying a house after our first purchase fell through. So my query doesnít really apply to me as such, but it does have me scratching my head!

    Iíve noticed a lot of properties that were circulating when I first started preparing to make an offer back in sept-December 2017 are back on the market after being sold. Non with any changes so Iím assuming they are purchased that fell through. What Iím finding strange is that they are being put back on at 10-50k more than 6 months ago! . One of them I nearly fell off my chair as it was listed for ages in the first place then was reduced and has gone back on at 50k more than the original price! I even know someone who has relisted at 100k above what they accepted 9 months ago!! (75k above original price)

    I would really love to find out why? Just out of curiosity. the housing market isnít exactly bouncing at the moment (in most of the country) and most houses in our area are being reduced long before they are sold and I know a lot of people who have offered well below asking (myself included) and itís been accepted.

    So what are anyoneís thoughts on the matter? I know Iím being a nosey sod! But Iím just baffled!. Is it estate agents? Or vendors? Or has the housing market recovered and started rocketing and no ones told me?
Page 2
    • nubbins
    • By nubbins 13th Apr 18, 5:28 PM
    • 710 Posts
    • 941 Thanks
    nubbins
    There will be a correction or downturn at some point in that particular area, then probably pick up again. London and South East are at that point and I expect that to ripple out to the rest of the country by which time London/South East will probably start picking up again. Who knows for sure but history seems to repeat itself

    • dunroving
    • By dunroving 13th Apr 18, 5:40 PM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    There will be a correction or downturn at some point in that particular area, then probably pick up again. London and South East are at that point and I expect that to ripple out to the rest of the country by which time London/South East will probably start picking up again. Who knows for sure but history seems to repeat itself

    Originally posted by nubbins
    I don't see the late 80s crash on that graph.
    (Nearly) dunroving
    • kinger101
    • By kinger101 13th Apr 18, 7:05 PM
    • 4,466 Posts
    • 6,211 Thanks
    kinger101
    I don't see the late 80s crash on that graph.
    Originally posted by dunroving
    That's because it's not inflation adjusted.
    • caronoel
    • By caronoel 14th Apr 18, 1:35 PM
    • 882 Posts
    • 1,131 Thanks
    caronoel
    There will be a correction or downturn at some point in that particular area, then probably pick up again. London and South East are at that point and I expect that to ripple out to the rest of the country by which time London/South East will probably start picking up again. Who knows for sure but history seems to repeat itself

    Originally posted by nubbins

    Interesting to see the trajectory.
    • Crashy Time
    • By Crashy Time 16th Apr 18, 1:26 PM
    • 6,519 Posts
    • 2,440 Thanks
    Crashy Time
    Thanks for the replies guys.

    It all makes for an interesting read.

    What I!!!8217;m perplexed about is that if house prices are rising st this rate (contrary to what the media is saying) then how can this possibly sustain?

    I bet the question has been asked a million times I!!!8217;m sure.

    This can!!!8217;t be a good thing? I!!!8217;m sure sellers would disagree but in the long run surely everyone looses when the market reaches an unsustainable level?

    Just a thought from a housing novice
    Originally posted by Jaywood89

    If sales volumes are falling as a smaller and smaller number of houses push up average prices, then no, it can`t sustain.


    See the last paragraph for how a small number of transactions at higher values can hide general price falls.


    https://www.bloomberg.com/news/articles/2018-04-15/london-house-prices-decline-in-stark-division-with-rest-of-u-k
    Last edited by Crashy Time; 16-04-2018 at 1:28 PM.
    • Crashy Time
    • By Crashy Time 18th Apr 18, 7:15 PM
    • 6,519 Posts
    • 2,440 Thanks
    Crashy Time
    Interesting to see the trajectory.
    Originally posted by caronoel

    https://www.capitalandconflict.com/economics/the-power-of-rising-house-prices/
    • Akahotpot
    • By Akahotpot 19th Apr 18, 2:08 PM
    • 145 Posts
    • 95 Thanks
    Akahotpot
    In my next of the woods NW, property still has a rise at least 20% to get back to 2007 prices
    • dunroving
    • By dunroving 19th Apr 18, 3:08 PM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    In my next of the woods NW, property still has a rise at least 20% to get back to 2007 prices
    Originally posted by Akahotpot
    Exactly, discussions of national trends are meaningless, because the reality for most people is what is going o where they live, not London, or Manchester, or Upper Snodsbury.

    I many areas of Scotland, house prices are just now returning to 2007 levels. I think the good news of that is they are less likely to drop, or drop substantially, if there is a house price wobble nationally.
    (Nearly) dunroving
    • Crashy Time
    • By Crashy Time 19th Apr 18, 10:51 PM
    • 6,519 Posts
    • 2,440 Thanks
    Crashy Time
    Exactly, discussions of national trends are meaningless, because the reality for most people is what is going o where they live, not London, or Manchester, or Upper Snodsbury.

    I many areas of Scotland, house prices are just now returning to 2007 levels. I think the good news of that is they are less likely to drop, or drop substantially, if there is a house price wobble nationally.
    Originally posted by dunroving

    London skews the national stats though, when people see proper price drops they will be in no hurry to borrow over the odds for property, and lenders will tighten how much they will lend as well.
    • Gwendo40
    • By Gwendo40 20th Apr 18, 5:32 AM
    • 159 Posts
    • 177 Thanks
    Gwendo40
    In my next of the woods NW, property still has a rise at least 20% to get back to 2007 prices
    Originally posted by Akahotpot

    Do you mean the 2007 bubble prices that were only achieved due to huge levels of irresponsible and fraudulent lending and almost resulted in the crashing of the entire economy?
    • dunroving
    • By dunroving 20th Apr 18, 8:48 AM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    Do you mean the 2007 bubble prices that were only achieved due to huge levels of irresponsible and fraudulent lending BORROWING and almost resulted in the crashing of the entire economy?
    Originally posted by Gwendo40
    Fixed it for you.
    (Nearly) dunroving
    • LandyAndy
    • By LandyAndy 20th Apr 18, 9:44 AM
    • 24,418 Posts
    • 51,560 Thanks
    LandyAndy
    I've noticed that here, north western fringe of the New Forest, that asking prices have increased dramatically in the last 6 months and properties are selling very quickly.
    • PhilE
    • By PhilE 20th Apr 18, 10:29 AM
    • 353 Posts
    • 221 Thanks
    PhilE
    Location.

    Properties in Cornwall haven't risen in 10 years. Parts of London are still on the rise, with some most probably due a sharp increase in coming years. There tends to be a period of massive increase, followed by a more gentle but continuing rise.

    Yes, it is crazy and will probably remain that way. For a couple of decades in London, houses built for working class families have been turned into leasehold flats costing over half a million.
    • hutman
    • By hutman 20th Apr 18, 12:13 PM
    • 100 Posts
    • 29 Thanks
    hutman
    There is a significant shortage of dwellings coming onto the market even at expected seasonal peaks. Last year, the only type of property which increased in count of properties available for sale has been two bed flats.

    So transactions volumes have tumbled, which is probably why we're seeing the deceptive anaemic rates of house price growth.

    And that is likely to continue unless we have some sort of supply side adjustment from government policy (housing is apparently high up its priority list - Corbyn threat as a pose to real desire to fix). So taxes on foreign investors, building on the greenbelt and crushing NIMBYISM and a faster convergence with the fed on rate hikes would most welcomed by FTBs.

    Any combination of the above will give greedy vendors the kick up the back side to list their properties.
    • cajef
    • By cajef 20th Apr 18, 1:30 PM
    • 4,845 Posts
    • 3,884 Thanks
    cajef

    Properties in Cornwall haven't risen in 10 years.
    Originally posted by PhilE
    Not sure where you got that information from but prices around where I live have been inreasing steadily over the last ten years, I bought a detached bungalow on a small estate ten years ago they are now selling for 25% more than I paid.


    What's the average house price in Cornwall?

    The average price for property in Cornwall stood at £285,354 in April 2018. This is a rise of 4.43% in the last three months (since January 2018) and rise of 6.46% since 12 months ago. In terms of property types, flats in Cornwall sold for an average of £203,104 and terraced houses for £215,670. This is according to the current Zoopla estimates.
    Last edited by cajef; 20-04-2018 at 2:37 PM.
    I used to have a handle on life, but it broke.
    • Gwendo40
    • By Gwendo40 21st Apr 18, 5:28 AM
    • 159 Posts
    • 177 Thanks
    Gwendo40
    Fixed it for you.
    Originally posted by dunroving

    Shall we agree on fraudulent and irresponsible lending AND borrowing?

    Surely you're not trying to suggest that the banks (or debt pushers as I prefer to call them) were entirely naive and innocent in that whole little episode are you?
    • dharm999
    • By dharm999 21st Apr 18, 9:22 AM
    • 327 Posts
    • 240 Thanks
    dharm999
    Not sure aboout the headline, but in just the past 24 hours, I have spoken with three colleagues who have been selling their houses/flats.

    Colleague 1 sold her flat in Edinburgh for 20% over what she paid 3 years ago. They had 8 offers within a week, of which 4 were cash buyers. They went to a closing date and sold within 2 weeks of first listing, with just two open house days.
    Originally posted by dunroving
    Crashy won't be happy about that.
    • dunroving
    • By dunroving 21st Apr 18, 10:03 AM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    Shall we agree on fraudulent and irresponsible lending AND borrowing?

    Surely you're not trying to suggest that the banks (or debt pushers as I prefer to call them) were entirely naive and innocent in that whole little episode are you?
    Originally posted by Gwendo40
    I can absolutely agree that it was irresponsible lending AND borrowing.

    But the situation is so often presented as "fraudulent and irresponsible lending", that my mental response is that, "It takes two to Tango". (or, alternatively, "Surely you're not trying to suggest that the borrowers (or debt addicts as I prefer to call them) were entirely naive and innocent in that whole little episode are you?")
    (Nearly) dunroving
    • Crashy Time
    • By Crashy Time 21st Apr 18, 1:40 PM
    • 6,519 Posts
    • 2,440 Thanks
    Crashy Time
    Fixed it for you.
    Originally posted by dunroving

    Very true, both bankers and public couldn`t get enough lending/borrowing before the crash, and that debt bubble has not been fixed, just kept inflated by everything they could pull out from under the kitchen sink, interest rate cuts being the biggest spanner they could find?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

314Posts Today

4,547Users online

Martin's Twitter