Is the house price crash underway ?

Looks like the house price crash may be underway folks .......
Financial Times
Pessimism pervades UK housing market
By Friederike Tiesenhausen Cave and Chris Giles in London Published: June 14
Estate agents and surveyors were more pessimistic in May about house prices than at any time since November 1992, the Royal Institution of Chartered Surveyors reports on Tuesday.
But a depressed housing market and weak consumer spending do not guarantee a cut in interest rates, Mervyn King, the governor of the Bank of England, said in a speech on Monday night.
In its closely watched monthly survey, Rics said 49 per cent more estate agents reported house prices had fallen over the past three months than said prices were rising, the worst seasonally adjusted reading for more than 12 years.
The figures suggest the housing market has again weakened sharply, after a few months when it had appeared to be stabilising.
The reading will disappoint many property professionals who argued throughout the spring that the market was bound to pick up once the uncertainty of the general election was out of the way.
Rics says on Tuesday that contrary to expectations of a post-election recovery: "Uncertainty over the economic climate has begun to dampen the mood of potential buyers despite the fact that the jobs market remains firm."
A small recovery in buyer activity, which started at the beginning of the year, has run out of steam as surveyors reported that overall sales levels had remained low. Completed sales in May were down 29 per cent on a year ago and enquiries from would-bebuyers slipped back in Mayafter having been at avirtual standstill for severalmonths.
The volume of new property coming on the market for sale continued to rise at a firm pace. Stocks of unsold property were 25 per cent higher than a year ago but have held relatively steady in recent months.
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Reply to
crowleyalastair
Does a bear shit in the woods?
3 of my neighbours have now had their houses on the market for over 5 months.....with only 5 viewing between the lot of them. Previously, similar property in this area sold within weeks. Prices have risen from 70-80k 5 years ago.....to around 110-120k at present.
It would seem though that there is a large disparity between what the sellers are being 'told' their houses are worth,....and what people are willing/able to pay.
Reply to
onlyme

Good, there is no advantage to high house prices. The higher the price the more commission estate agents and solicitors get. Plus to upgrade to a bigger house existing buyers have to borrow more.
Reply to
informer


lowered prices tend to lead to lowered prices as people wait for prices to drop...and people ('investors') try to unload in a hurry
this is just the reverse of people chasing prices upwards
all goods are worth exactly what someone is prepared to pay right now
many people in housing will just sit it out while the price swings around them....for them, current prices are not their major concern.... thus, your neighbours could have sold their houses by lowering the price asked....
many estate agents will quote you a higher than market price in the hope of getting the house onto their books....then hope to keep you hooked while you are steadily encouraged to lower the price...
regards
Reply to
abelard

Funnily enough, one of them 'has' lowered his price by 10K, (he's leaving the area for work and 'has' to sell). All three are with the same local agent. It was a case of , the asking price of the first starting a rush to sell ("bloody hell...we didn't realise they were worth that much, let's get ours on the market").....shame that they 'weren't' apparently worth that much lol..... I'll be watching with interest to see whether the other two drop their price or sit it out. I'm wondering if prices can be chased down as fast (if not as far) as they were chased up. Hopefully, many who bought in recent years on massive mortgages will be happy to stay put for a while.....because if they all try to 'cash in their chips' while prices are on the fall, they will be disapointed I fear.....and we'll hear endless reports of negative equity every time we turn on the news.
Reply to
onlyme

My friend who lives in Sandhurst, Berkshire, told me last week that a 3 bedroomed house that went on the market several months ago for 247K, recently sold for 207K. There are now 7 other houses in her road up for sale (in a road of 30), including both of her next door neighbours either side of hers. All of the houses have been on the market for quite a while.
In the town where I live (Woking, Surrey), I have another friend who is trying to sell a one bedroomed back-to-back house for 151K. He originally had it on the market in January for 155K but were told to drop on advice of the estate agent. Similar houses in the area are now selling for around the 140~145K range, but the lowest I've seen is for a similar type property in the area (and IMHO in much better nick - but don't tell my friend I said so) is going for 137K. My friend is adamant that he won't drop again. I guess his house might be on the market for a long while yet.
The numbers speak for themselves, in my view anyway.
Reply to
Layezee

West Yorkshire....you don't wanna move here mate...trust me. Houses in question are quite decent 2 bedroomed semis....but on the outskirts of chav-central....(just around the corner from new pakistan.....and just down the road from dole-scroungers lane)
Reply to
onlyme
It's only those who want to sell but can't who are managing to 'resist' ......a Pyrrhic victory if ever there was one.
Fairly typical behaviour for the top of a bubble.
Reply to
curiosity

120k pounds would buy a three BR detached house on 600 square metres in an average to better than average suburb in Auckland!
Why would I want to move to West Yorkshire? I have a 110 square metre house on 1100 square metres looking north over Tauranga Harbour with an all-tide boat ramp 600 metres away. All at much the same price and a sub-tropical climate as well. The nearest social welfare office would be about 50 kilometres away.
R
Reply to
Roger Dewhurst
wrote:
Estate agents have had increasing stock-levels building up for some time now - I read this often and without any contradiction even in amongst the vested interests - and at the same time potential buyers are scenting a market collapse. It's looking very shaky to me- the market and prices will be set by the tension between the pool of genuine buyers and determined sellers, not by those who are sitting tight.
Reply to
curiosity
wrote
..."property professionals"? What they, estate agents? Professionals?
The *McJobs* market remains firm, but those public sector nonjobs are basically being created to hide unemployment. They aren't real and they aren't worth anything. Lesbian outreach coordinators aren't going to shore up a bust market.
Reply to
John Redman
"Layezee" wrote
Saw a place in Finchley that was on at 700k and has come down to 600k, and still nobody's viewing.
Reply to
John Redman

sub-tropical
You can find the NZ immigration rules on the internet!
R
Reply to
Roger Dewhurst

Hang on a minute...Rodger Dewhurst.....?? NOT Uncle Rodger!!!??? What a small world...how long's it been Unc?. Get the spare room ready.....I'm on my way!
Reply to
onlyme
"Layezee" wrote
What your friend has not worked out is that if his house is dropping in value then so is the house he wants to buy. This means lower fees and taxes and the chance to upgrade to a bigger house than before.
My first ever house was bought 23 years ago. For 27,500 I got a new 3 bedroom semi with garage. For 2,500 more I could have bought a detached. Now the gap between the same semi and the detached is around 50,000. Bring on lower prices I say and watch that gap start to shrink.
Reply to
informer
Half the properties in Edinburgh for sale are now at fixed price. Prices down 1.3% on the last quarter which I think is a first in nearly 30 years. Smell the fear ....
Glad I bought in 1997.
Roland.
Reply to
Roland Watson

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