How far will house prices fall [volume 5]

[Rob_125]

There definitely seems to be many more reductions in the past week, assuming people are getting itchy feet and trying to sell before the end of December to enable completion before end of march. For example two properties we looked at, one at 480k is now 460k, on at 475k is now 450k. Hopefully the downward trend continues.

[kingston12]

Rob_125 said:

There definitely seems to be many more reductions in the past week, assuming people are getting itchy feet and trying to sell before the end of December to enable completion before end of march. For example two properties we looked at, one at 480k is now 460k, on at 475k is now 450k. Hopefully the downward trend continues.

There could definitely be a bit of nervousness as sellers start to realise that offers agreed now are less and less likely to make it through to completion before the deadline. Sellers wanted ‘their’ extra £15k when the cut was announced, so buyers will undoubtedly want it back when it ends.

My view is that it will be extended anyway, perhaps indefinitely, but if that is going to happen then it would be better (for prices) if they announced it sooner rather than later.

[Sheepshanks]

Rob_125 said:

There definitely seems to be many more reductions in the past week, assuming people are getting itchy feet and trying to sell before the end of December to enable completion before end of march. For example two properties we looked at, one at 480k is now 460k, on at 475k is now 450k. Hopefully the downward trend continues.

Certainly in our area (West Cheshire) stuff is going SSTC very fast so I imagine if people aren't getting serious interest immediately then they'll quickly realise the price is too high.

An agent told me years ago that people won't look above their budget thinking they can get the seller down, and based on seeing relatively small reductions and then houses quickly going SSTC I can only assume that's still true.

[V6Alfisti]

Rob_125 said:

There definitely seems to be many more reductions in the past week, assuming people are getting itchy feet and trying to sell before the end of December to enable completion before end of march. For example two properties we looked at, one at 480k is now 460k, on at 475k is now 450k. Hopefully the downward trend continues.

Around here as well and on the large desirable detached homes in nice areas.

On another note, I was speaking with a friend last night who has just accepted a 10% cut on their flat as they needed an offer to make one on something else, this cutting their budget plus more as the mortgage company changed the available options to them.

Seemingly the place they are offering on has just come back to market as the previous buyer pulled out, after that buyer placed multiple offers across various properties. Their second preference was accepted but not their first, a few weeks later the owner of their number 1 preference came back and accepted, so they bailed on no2. Then in a twist, no2 came back with a £40k discount on a sub £750k property as it would kill their chain. They still went with No1 and no2 is now back on at the discounted offer rate to shift.

House buying is just mayhem...!

[Pit Pony]

The house next door but one, was rented out for about 10 years, and last year the family that were renting, moved out a bought a fixeruper round the corner. (He's a bricklayer by trade)

Anyway the landlord, has spent a whole 8 months doing up this small 3 bed semi, and and it's really top quality.
They stuck in on the market at a price which is about 15% higher than I'd have ever thought it was worth.
3 months later it's still for sale.
I think they overspend, and misjudged their market. Our area is the "posh" bit of Miseryside. These houses are the cheapest in this area, but go 4 miles you can get a nicer / bigger house for less money.

[the-photographer]

The only way is up

https://www.bbc.co.uk/news/health-54873105

[surveyor]

the-photographer said:

The only way is up

https://www.bbc.co.uk/news/health-54873105

Or down. The market was boosted by the stamp duty holiday. How they take it off holiday without killing the market will be interesting. There will be a lot of stressed purchasers and solicitors about!

[NickCQ]

surveyor said:

There will be a lot of stressed purchasers and solicitors about!

Not to mention vendors!

[MX-6]

the-photographer said:

The only way is up

https://www.bbc.co.uk/news/health-54873105

Well. I think if covid crisis can be truncated by new treatments including vaccines, the economy bounces back fairly swiftly, and we can get some sort of reasonable trade deal out of the EU before brexit, then I don't see a crash in house prices. I still wouldn't bet against a stagnation or somewhat minor dip coming next year or 2022 given everything that's happening. Who knows though, I think it will depend on interest rates (I can't see them going up), stamp duty and how much the government tries to intervene in the market generally.

[MX-6]

surveyor said:

the-photographer said:

The only way is up

https://www.bbc.co.uk/news/health-54873105

Or down. The market was boosted by the stamp duty holiday. How they take it off holiday without killing the market will be interesting. There will be a lot of stressed purchasers and solicitors about!

The stamp duty holiday does appear to have stimulated the market, but it seems mostly psycological given that prices have seemingly just gone up to swallow up much of the money that would have been saved due to paying less tax. If stamp does come back in abruptly as seems to be on the cards will it will surely put at least some brakes on market activity.

[okgo]

MX-6 said:

The stamp duty holiday does appear to have stimulated the market, but it seems mostly psycological given that prices have seemingly just gone up to swallow up much of the money that would have been saved due to paying less tax. If stamp does come back in abruptly as seems to be on the cards will it will surely put at least some brakes on market activity.

People tend to be less bothered with the part of the transaction they can finance vs the bit they have to find in cold hard cash...

[the-photographer]

surveyor said:

the-photographer said:

The only way is up

https://www.bbc.co.uk/news/health-54873105

Or down. The market was boosted by the stamp duty holiday. How they take it off holiday without killing the market will be interesting. There will be a lot of stressed purchasers and solicitors about!

It was tongue in cheek, god knows how this variable will influence the market

[Jiebo]

ooid said:

More SE London questions from me!

Any opinions on this house and the area? I can't seem to find anything too dodgy, except the fact that the interior needs loads of upgrading!

https://www.rightmove.co.uk/property-for-sale/prop...

It is quite close to Petts Wood St., that would be a big win for me...

Cheers gents!

You really do get a lot for your money in this part of town.

In north London zone 5 these sorts of houses in pleasant areas away from the scum go for £1m.

[princeperch]

Here is a head scratcher

Last sold for 665k in 2014 in presumably habitable condition.

Gutted by a fire and on for 700.


https://www.rightmove.co.uk/property-for-sale/prop...

Is the answer the poor bd didnt have insurance who wont now foot the repair bill?

That house would be close to £1m fully renovated so i cannot understand it myself.

[anonymous-user]

princeperch said:

Here is a head scratcher

Last sold for 665k in 2014 in presumably habitable condition.

Gutted by a fire and on for 700.


https://www.rightmove.co.uk/property-for-sale/prop...

Is the answer the poor bd didnt have insurance who wont now foot the repair bill?

That house would be close to £1m fully renovated so i cannot understand it myself.

Can only be the answer I guess

[MX-6]

anonymous said:

[redacted]

[clio007]

princeperch said:

Here is a head scratcher

Last sold for 665k in 2014 in presumably habitable condition.

Gutted by a fire and on for 700.


https://www.rightmove.co.uk/property-for-sale/prop...

Is the answer the poor bd didnt have insurance who wont now foot the repair bill?

That house would be close to £1m fully renovated so i cannot understand it myself.

Or maybe the owner has taken a lump sum payment from the insurance to redo the house but has instead decided to sell it as is to be quids in?

[NickCQ]

A house fire is a truly traumatic experience.
I am not surprised that someone would decide to take the money and move on with life.

[ooid]

Jiebo said:

You really do get a lot for your money in this part of town.

In north London zone 5 these sorts of houses in pleasant areas away from the scum go for £1m.

There is another one, just recently reduced in the market, quite similar but recently done.

https://www.zoopla.co.uk/for-sale/details/56725270

[fishseller]

Driving along the A13 Ripple road towards a A406 then A12 towards black wall tunnel all I see are 10's of thousand of new builds flats in tower blocks who are buying these overpriced boxes with crippling service charges ? I have never seen such a boom in flat building in my life It don't look like there is a housing shortage