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House Prices Up 2% in Jan, End Of Recession?

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Our house was re-valued today, its been on the market for over 6 months.

 

Its was originally up for £320k, today 'worth' approx £290k. I honestly thought it would have been lower, about £280k. I would take an offer of £280k but the EA (obviously) said accept above £285k.

 

He also said they had sold 15 houses in the last week![/QUOTE]

 

Funny that, the advert said "It could be you" but I still havent won the lottery, they also said theres a new millionaire every week, again nothing. Santa never turned out to be true either, lifes full of disappointments, and full of people talking up the market to encourage you to continue to use their failing business. Did you not question them as to why after selling 15 houses yours wasnt one of them? Why they got their first valuation wrong? Why they are valuing it at a 10% drop which is less than the UK average?

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Interesting to look at the US market, the price of housing varies massively depending on where you look.

Try to find a flat in Manhattan and then compare it to something in a village in Virginia. I suppose that's much like the UK, but on a larger scale.

I wonder how well the regional variation in average wages matches the regional variation in average house price?

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Interesting to look at the US market, the price of housing varies massively depending on where you look.

Try to find a flat in Manhattan and then compare it to something in a village in Virginia. I suppose that's much like the UK, but on a larger scale.

I wonder how well the regional variation in average wages matches the regional variation in average house price?

 

A really interesting comparison is one of the UK and California housing markets - the similarities are quite amazing, except we are running about 12-18 months behind

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Our house was re-valued today, its been on the market for over 6 months.

 

Its was originally up for £320k, today 'worth' approx £290k. I honestly thought it would have been lower, about £280k. I would take an offer of £280k but the EA (obviously) said accept above £285k.

 

He also said they had sold 15 houses in the last week![/QUOTE]

 

Funny that, the advert said "It could be you" but I still havent won the lottery, they also said theres a new millionaire every week, again nothing. Santa never turned out to be true either, lifes full of disappointments, and full of people talking up the market to encourage you to continue to use their failing business. Did you not question them as to why after selling 15 houses yours wasnt one of them? Why they got their first valuation wrong? Why they are valuing it at a 10% drop which is less than the UK average?

 

Calm down!

 

Thats what he said re. 15 sold but not idea if this is true, he is an EA afterall.

 

The 1st valuation was done over 6 months ago hence why it was HIGHER than the new one.

 

We have been doing some work to the house and hence its not suitable for viewing. This is now complete.

 

Thats what its valued at and not necessarily what it will sell for. If it sells for £280k that would be a 12.5% drop which is more like the UK average.

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I think they will continue to drop for the next 8-10 months- there just isn't anything in the economy thats going to help then to start going back up in value!!

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1. Reposession and forclosure.

 

Only some mortgages are non-recourse. Interestingly a large amount of bailout money has been spent trying to bribe non-recourse mortgage holders onto recourse mortgages.

 

2. Available land

 

This goes some way to explaining why the cost of property in the US has always been lower than in the UK relative to wages. But the idea that scarcity of land will force up prices doesn't bear out. The cost of housing is loosely tied to average earnings and nothing else in both countries.

 

Interesting point on forclosure - I didn't realise they were using money to try and get people onto differnt types of loans - makes sense. People will make an effort to meet the payments if they have a financial interest in doing so.

 

On land avaiability: It isn't just the relative cost that makes a difference...its the ability of housebuilders to repsond to demand. Housebuilders in the states throw them up when there is demand - they come flatpacked on lorries from factories and go up in a week flat. In this country, planning laws strangle companies ability to meet demand. I didn't say it was a good thing, just a feature of our market.

 

I agree with what you say about prices being lonked to earnings, but the multiplier is differnt country by country. I was seriously considering moving to Belgium a few years back. Houses looked like bargains. 20% stamp duty pegged the price back.

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Calm down!

 

Thats what he said re. 15 sold but not idea if this is true, he is an EA afterall.

 

The 1st valuation was done over 6 months ago hence why it was HIGHER than the new one.

 

We have been doing some work to the house and hence its not suitable for viewing. This is now complete.

 

Thats what its valued at and not necessarily what it will sell for. If it sells for £280k that would be a 12.5% drop which is more like the UK average.

 

Im not criticising you, in your position I would of course want the maximum price, its the EA im laughing at. Dont confuse an asking price with a sold price, a 12.5% reduction assumes someone paid the full asking price and you accept £280K today. EA suggests you accept above £285K, hes telling you that someone is happy with a price negotiation of less than 2% in a falling market. Do you not find that a bit ridiculous? If you were to buy yourself a new car today would you be happy if the salesman offered you a discount of 2% when the market is non-existant?

 

All Im saying is that the EA is trying to convince you to keep using his service, and If I were you I wouldnt listen to his sales patter, rather I would research the last sold price around the peak of 2007 and reduce it by at least 20%.

 

Best of luck with the house sale, I really hope it goes well for you, but have a look in the news at the millions of people in your position whos homes are not selling, and then try to balance that against what the EA is telling you.......

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Im not criticising you, in your position I would of course want the maximum price, its the EA im laughing at. Dont confuse an asking price with a sold price, a 12.5% reduction assumes someone paid the full asking price and you accept £280K today. EA suggests you accept above £285K, hes telling you that someone is happy with a price negotiation of less than 2% in a falling market. Do you not find that a bit ridiculous? If you were to buy yourself a new car today would you be happy if the salesman offered you a discount of 2% when the market is non-existant?

 

All Im saying is that the EA is trying to convince you to keep using his service, and If I were you I wouldnt listen to his sales patter, rather I would research the last sold price around the peak of 2007 and reduce it by at least 20%.

 

Best of luck with the house sale, I really hope it goes well for you, but have a look in the news at the millions of people in your position whos homes are not selling, and then try to balance that against what the EA is telling you.......

 

 

 

market falling is it?

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Funny that, the advert said "It could be you" but I still havent won the lottery, they also said theres a new millionaire every week, again nothing. Santa never turned out to be true either, lifes full of disappointments, and full of people talking up the market to encourage you to continue to use their failing business. Did you not question them as to why after selling 15 houses yours wasnt one of them? Why they got their first valuation wrong? Why they are valuing it at a 10% drop which is less than the UK average?

 

If you check out the Land Registry's house price index you will see that the UK average has dropped by 15%... however, prices in Sheffield (which they also have an index for) have only dropped by 10%. I find that a lot of the houses which have not sold have been on the market for more than 6 months and although correctly priced at the time, are now worth a lot less... but most vendors appear reluctant to drop their price. We are currently looking to buy in S11, which still seems to be doing well. A lot of the houses we have seen and discounted (due to personal preference) now have sold on them... and we have only been looking for a few weeks.

 

I am not saying that prices are about to start rising anytime sooon, but it does seem to suggest that prices may have stopped falling - in the more desirable areas at least... for now anyway.

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market falling is it?

 

Yes. Are you the only person worldwide who denies the UK housing market is falling, because you have superior knowledge to the best financial analysts in the world? Or are you just stupid......

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Hi sweetcorn. Edit the above post and remove

 

Otherwise you're making yourself look stupid, which I'm sure you're not.

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Well house prices have dropped another 2% last month according to the news today so it looks like it was a blip!

 

Thats 17% in a year- long may it continue.

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