Property crash, just maybe it really is different this time

[Option5]

When business is booming EAs suggest a high price so the seller will use them.

When business is bad they suggest a lower price hoping that a sale will go through quicker to aid their cashflow.

[onlyme]

15 minutes ago, Option5 said:

When business is booming EAs suggest a high price so the seller will use them.

When business is bad they suggest a lower price hoping that a sale will go through quicker to aid their cashflow.

The void in the middle is when they change their tune, panic and go bust. I heard in the last bust one particular small but reasonably well known local agent ony sold one house in a six month period.

Once they have more than enough houses on their books that they can market / service, little point in instruction hunting by offering even initial over-valuation for anything that they already know won't sell thanks to having similar on their books. One off properties might be a little different as unique houses attract only need to attract a one off buyer.  As supply and listings rise you should see over time any effort to overvalue to gain intructions across the board  tail off and see the inital asking price averages come down in line with falling achieved sale prices.

[Calcutta]

Old fella at work was telling me he gets his house valued every year. Fuck knows who by, or if he's paying for this service, but he seemed quite happy with it.

Guy had told him his house was worth 225. A quick look at houseprice.io and I told him the last house on his street was sold for 180 and that was last summer, before the crash began in earnest. He didn't look too impressed when I explained his house was only worth what someone would pay for it and having it 'valued' was pointless.

[Ash4781b]

https://www.bbc.co.uk/news/business-65876570
 

“Broker London & Country said lenders had been withdrawing deals and raising rates at a "relentless pace" and this week would "bring more of the same".

Mortgage rates have gone up about 0.5 percentage points in the last month to approach an average fixed deal of 6%.”

 

im not sure the reporting is accurate there. It does not seem to line up with the charts. If the mean average fixed rate is 6% that’s pretty ominous. Presumably the  svr rates are high and people rushing to fix at 6%. Just glancing at nationwide their svr equivalent is 6.25% or 7.74%…

I might have to look at svr rates. No wonder they are warning. I was working on a 30% increase on monthly payment. Might be a bit low.

 

[Van Lady]

48 minutes ago, Calcutta said:

Old fella at work was telling me he gets his house valued every year. Fuck knows who by, or if he's paying for this service, but he seemed quite happy with it.

Guy had told him his house was worth 225. A quick look at houseprice.io and I told him the last house on his street was sold for 180 and that was last summer, before the crash began in earnest. He didn't look too impressed when I explained his house was only worth what someone would pay for it and having it 'valued' was pointless.

Agree with you it’s pointless getting your house valued every year and they’re worth what someone will pay for them which varies due to a wide variety of circumstances.

Someone I know has 3 late teens kids and is excited by the prospect of a major nearby development and enthused that their house value would go up. I responded by saying who knows but one thing for sure is that young people on average wages wouldn’t be able to buy a house with a mortgage unless they got family help with a fairly large deposit or an inheritance came their way. The silence was deafening!

[Chewing Grass]

My lad wants to extend his small semi, wants to remortgage, asked him what rate was he on and how long the fix is for.

He checked on his phone and turns out 2.05% till 2025, I told him he wasn't remortgaging anything as his current £800 per month will turn into £1500. I told him it would be cheaper to get a personal loan and remortgage later and pay it off.

[Wight Flight]

One hour ago someone posted on facebook that they would soon have a three bed property to rent, and asking for advice on the best agent to use.

No photos, no location, no price.

In the last hour they have had 50 people publicly begging to rent it. No idea how many private messages they have had.

Housing in this country is totally fucked up.

[One percent]

3 minutes ago, Wight Flight said:

One hour ago someone posted on facebook that they would soon have a three bed property to rent, and asking for advice on the best agent to use.

No photos, no location, no price.

In the last hour they have had 50 people publicly begging to rent it. No idea how many private messages they have had.

Housing in this country is totally fucked up.

Hardly surprising when they import over a million new British every year.   

[Wight Flight]

Just now, One percent said:

Hardly surprising when they import over a million new British every year.   

Not here. Our population only rose by 1.5% since the last census.

Makes me weep for these people.

And our politicians spend their time wondering if women have a cock.

[One percent]

8 minutes ago, Wight Flight said:

Not here. Our population only rose by 1.5% since the last census.

Makes me weep for these people.

And our politicians spend their time wondering if women have a cock.

The pressure here is turning everything into fhl.  Mind, that’s all blowing up in their faces.  Went out over the weekend and given that it is summer and the weather fantastic for the first time, it was decidedly quiet in all the pubs and restaurants. 

[leonardratso]

2 minutes ago, One percent said:

The pressure here is turning everything into fhl.  Mind, that’s all blowing up in their faces.  Went out over the weekend and given that it is summer and the weather fantastic for the first time, it was decidedly quiet in all the pubs and restaurants. 

I fancy a day in whitby if its quiet, i really like the seaside in winter when its dead and the sea is rough.

[Wight Flight]

5 minutes ago, One percent said:

The pressure here is turning everything into fhl.  Mind, that’s all blowing up in their faces.  Went out over the weekend and given that it is summer and the weather fantastic for the first time, it was decidedly quiet in all the pubs and restaurants. 

There was another interesting post from someone saying they are just buying a second home and looking for an electrician.

One of the first replies was don't mention it is a second home as the trades will not deal with you.

Perhaps that is the way forwards.

 

[One percent]

9 minutes ago, leonardratso said:

I fancy a day in whitby if its quiet, i really like the seaside in winter when its dead and the sea is rough.

After September, mid week.  Even in the middle of winter, weekends are too busy.  

[One percent]

5 minutes ago, Wight Flight said:

There was another interesting post from someone saying they are just buying a second home and looking for an electrician.

One of the first replies was don't mention it is a second home as the trades will not deal with you.

Perhaps that is the way forwards.

 

They are craven round here.  Mind, I did fall out with my builder when he tried to explain that locals were more important than blow-ins.  I thought my mate, who I went to school with was going to kill him.  

[Wight Flight]

Just now, One percent said:

They are craven round here.  Mind, I did fall out with my builder when he tried to explain that locals were more important than blow-ins.  I thought my mate, who I went to school with was going to kill him.  

During lockdown i usually got my Tesco delivery to my office.

Twice i had it at home, in an area that was 85% second home owners.

The driver treated me like dirt on the two occasions we had a delivery at home. Amazing difference.

[leonardratso]

4 minutes ago, One percent said:

After September, mid week.  Even in the middle of winter, weekends are too busy.  

yers, mid week, stormy winter days. Havent done it for 15 years or , might pick it up again soon.

[leonardratso]

2 minutes ago, Wight Flight said:

During lockdown i usually got my Tesco delivery to my office.

Twice i had it at home, in an area that was 85% second home owners.

The driver treated me like dirt on the two occasions we had a delivery at home. Amazing difference.

hmm lucky it wasnt in wales eh, theyd have firebombed you and shagged your cockerpoo. Understandable since some of them do look amazingly like lambs/sheep.

[One percent]

1 minute ago, leonardratso said:

yers, mid week, stormy winter days. Havent done it for 15 years or , might pick it up again soon.

Don’t mind the occasional tourist. It’s the drunken, rude hordes from smoggy and wessie land i despise.  
 

 

[HousePriceMania]

9 hours ago, Option5 said:

When business is booming EAs suggest a high price so the seller will use them.

When business is bad they suggest an EVEN HIGHER price in the hope that some ejit will bail them out.

 

[Phil]

2 hours ago, Wight Flight said:

One hour ago someone posted on facebook that they would soon have a three bed property to rent, and asking for advice on the best agent to use.

No photos, no location, no price.

In the last hour they have had 50 people publicly begging to rent it. No idea how many private messages they have had.

Housing in this country is totally fucked up.

IOW is very different to the mainland.

[Wight Flight]

9 minutes ago, Phil said:

IOW is very different to the mainland.

Not so sure.

i am hearing similar from other places. Demand is seriously outstripping supply.

[MrXxxx]

You think property affordability is high now, just look at the Victorians!...are we heading back there i.e. the majority of the population will be renters even late in life?

https://www.schroders.com/en/global/individual/insights/what-174-years-of-data-tell-us-about-house-price-affordability-in-the-uk/

[Phil]

2 minutes ago, Wight Flight said:

Not so sure.

i am hearing similar from other places. Demand is seriously outstripping supply.

It is everywhere agreed. IOW. Imo is small in comparison to the mainland. The proles on the mainland will always find a hovel to bed down in, even if they have to pay more to Kip. 

[AWW]

3 hours ago, Wight Flight said:

There was another interesting post from someone saying they are just buying a second home and looking for an electrician.

One of the first replies was don't mention it is a second home as the trades will not deal with you.

Perhaps that is the way forwards.

 

Interesting. My sister in law has a holiday home in a nice block of flats in the Highlands and constantly complains that trades do a shit job and rip her off because she's got an English accent and is seen as rich.

I tend to keep quiet because she's incapable of dealing with differing opinions.

[MrXxxx]

On 11/06/2023 at 00:13, tank said:

Purchased by the vendors for £150,000 in 1995.

Even if they sell it for £750,000 and have done some renovations, they'll come out well in front.

I can see why a downsizing or divorcing boomer couple would view it as a pension of sorts. 

Agree, plug in £150k here [https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator]

and in todays value it would still only be £288k, plug it in here [https://monevator.com/compound-interest-calculator/] and if they sell at £750k it has grown at 7.5% per annum.