This week. Straight from the horses mouth......estate agents admit to "persistent overpricing" by some agents.
The chief executive of Redrow builders described it as ...."the worst
market for new and secondhand homes for 30 years."
The chief executive of Persimmon builders said that "adding 20 per cent
to a property's value might be achievable in a buoyant market but in
tougher times it is likely to leave property prices "marooned".
Which way for house prices now I wonder ?
.........and what price on a recession ?
Estate agents admit to pushing up values
By Roger Blitz in London
Published: January 6 2006 20:42 | Last updated: January 6 2006 20:42
Estate agents, members of a profession not especially known for
frankness and honesty, have confessed to a practice long suspected by
homebuyers and sellers: overvaluing people's homes.
The National Association of Estate Agents on Friday conceded that
housebuilders' accusations of "aspirational pricing" by estate
agents, which they claimed had contributed to the stalling of the
market last year, were mainly valid. "I would accept that," said
Peter Bolton King of the association. "Some estate agents
persistently overpriced over the past year."
There were examples, he said, of agents overvaluing properties solely
to get instructions from homeowners. But there were also big numbers of
homeowners who refused to lower valuations in spite of months of
This week Redrow said aspirational pricing by estate agents was
contributing to what Neil Fitzsimmons, its chief executive, said was
the worst market for new and secondhand homes for 30 years. Property
transactions in the year to November were 13 per cent lower than the
previous 12 months, according to official statistics.
The chief executives of Persimmon and Wimpey on Friday said
aspirational pricing had made market conditions more difficult. John
White of Persimmon said that adding 20 per cent to a property's value
might be achievable in a buoyant market but in tougher times it is
likely to leave property prices "marooned".
PS. don't shoot the messenger ;-)
- posted 14 years ago