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Original poster

So has the house price crash started to happen then??

30 replies

FAQ · 30/10/2008 13:22

I think possibly so - estate agents have just called exH and advised him to drop the sale price by 10k (currently on at 125) as the prices are dropping so rapidly. It only went on the market at the start of this month !

OP posts:
expatinscotland · 30/10/2008 13:23

They keep saying it has.

dinny · 30/10/2008 13:23

Nationwide down 14.6% on the year

Original poster
FAQ · 30/10/2008 13:26

I'd noticed that rental prices have come down a LOT over the last few weeks, been checking daily since the start of the month. At the start of the month a 3 bedroom house in a reasonable area close to town was £550 minimum now there's some appearing at just under £500 and really big spacious one (slightly further away but good area) has just come on at £650 - which a month ago I would have thought an absolute bargain.

OP posts:
expatinscotland · 30/10/2008 13:27

the rental prices have been dropping here, too .

Original poster
FAQ · 30/10/2008 13:33

I suppose it's quite good for me if they keep dropping (rental prices) at this rate, as I'll definitely have deposit and maybe even 2 or 3 months rent saved up before I have to move.

Not sure what will happen to this house though - what happens if a house is repossessed but is sold for under the amount that's still owing on it??

OP posts:
egypt · 30/10/2008 13:37

our house is on the market. estate agents have advised all their clients to drop by 10%

dinny · 30/10/2008 13:43

I think there'll be a huge adjustment after Christmas - asking prices will become a lot more realistic

Miffyinsurrey · 30/10/2008 14:00

Its interesting to hear about the lower rental prices. We used to let a property (now sold) and the agents told us when we were originally putting it up for letting, that if property prices were to fall, the rental price would go up.

Now it appears property prices are falling and rental prices having initially risen, are falling too which would seem to contradict the estate agents theory.

Does anyone understand what is happening? Are property prices and rental prices going down at the same time? Maybe the government weren't telling the truth when they said that 1000s of houses need to be built every year to satisfy the demand?!

autumnwardrobeonthecheap · 30/10/2008 14:04

according to the land registry some areas by me (Bristol) have gone up a touch (1-9%) in this last quarter.

What does everyone think will happen after xmas?

expatinscotland · 30/10/2008 14:05

'Does anyone understand what is happening? Are property prices and rental prices going down at the same time?'

Because when people can't flog their house, a lot of them try to let it out in order to keep some money coming in.

So, in our area at least, there's a glut of properties for rent.

I'd imagine this would be the case even more in cities, where foolish councils gave developers permission to shoehorn in tens of thousands of flats barely large enough to qualify for a chicken run, much less a home for more than a guinea pig.

BloodyStranglingwithBling · 30/10/2008 14:08

LAthough in our area, prices seem to be going up for rentals. I noticed that the house a few doors down from us, exactly the same, is on offer for rental at about 12% more than what we pay. It might be slightly more modern inside as our landlord is quite cheap and won't do anyhting but 12% more modern?

Upwind · 30/10/2008 14:17

People are asking for silly money both for rent and for sale - some imagine they should be able to get a rent that will at least cover their mortgage or sell for what next door sold for last year. These don't matter though because they are not shifting.

Rents here are dropping - estate agents kept telling us so, and offering discounts or advising that rents were very negotiable. Sale prices are dropping too, in a friend's newbuild estate there were a couple of identical houses for sale for £220k for at least a year, now another house that is exactly the same has just gone on the market at a little over £180k, much less than the owners will have paid for it. Obviously, if you were buying one of those houses it would be the cheaper one!

expatinscotland · 30/10/2008 14:18

there also appears to be room for negotiations on rents if you've got a background as a good tenant and more landlords willing to offer tenancies of longer than 6 months in order to have tenants in whilst riding out the storm.

the rumour is that there will be more redundancies at or around the new year, so prices will fall accordingly.

but that remains to be seen.

the recession won't be officially announced until figures from the last quarter come out in the new year.

there are rumours of another interest rate cut, but that remains to be seen because there may be increased inflation if they do that.

Grammaticus · 30/10/2008 14:19

FAQ - I think they can chase you for the shortfall. Maybe you should go and ask at the CAB if it might be important.

autumnwardrobeonthecheap · 30/10/2008 14:39

expatinscotland I'm with you on your theories RE new year.

However, an estate agents told me yesterday that prices will begin to increase in the new year and that at the moment they have more buyers than sellers & they are desperate for more people to put their houses on the market.

Do you think there is any truth to the latter? I'm in Bristol BTW.

JimmyMcNulty · 30/10/2008 14:42

Lenders used to routinely hand out 100% mortgages and 6 x earnings. Now they don't - only one way for prices to go IMO, until they are at historic norms again. We are way past the point where rate cuts can stop this from happening.

We are renting atm and may be offering on a house after the weekend (haven't even viewed it yet but looks perfect for us) but our offer would be no higher than 30% off the original asking price (it's already come down 15%). Be quite surprised if they accepted at this stage though.

expatinscotland · 30/10/2008 14:42

'an estate agents told me yesterday that prices will begin to increase in the new year and that at the moment they have more buyers than sellers & they are desperate for more people to put their houses on the market.

Do you think there is any truth to the latter? I'm in Bristol BTW. '

this is coming from an estate agent, remember?

i would take whatever an estate agent says with a HUGE lump of salt, not just a grain, in these times.

autumnwardrobeonthecheap · 30/10/2008 14:45

That's the thing about EA's the market would be so much easier to navigate if you didn't have them muddying the waters.

We like a house on for 220k, he reckons it was originally on for 300k, we would only offer 175k. But he tells us it's got someone who is willing to pay asking price and they will be putting in an offer today after 3rd viewing.

Off topic I know but god; they are annoying and so slippery I never know what to believe!

expatinscotland · 30/10/2008 14:47

'But he tells us it's got someone who is willing to pay asking price and they will be putting in an offer today after 3rd viewing.'

because his commission is based on the price you pay.

just remember whatever you pay isn't what you pay. you have to be interest, too.

JimmyMcNulty · 30/10/2008 14:54

Is he young, autumnwardrobe?

Only ask because younger EAs who haven't experienced a crash don't tend to know how to handle it. They just repeat the same old mantras as before but in a higher and more panicked voice like a malfunctioning robot.

IME.

critterjitter · 30/10/2008 15:31

I read somewhere at the weekend (The Times maybe?) that houses are coming onto the market at higher prices than 2007, because EA's argue that there is not enough property being put up for sale, so they are having to price up property to get the job (and fend off other agents)! No wonder vendors think that there properties are still a goldmine, and won't take reasonable offers!

I should think that once its on the market, the agents then start their pricing down strategy with the vendor, 10% at a time!

In all the areas that I am looking, all the property on PrimeLocation and RightMove has been on for at least 6-8 months, often a year, and their prices have barely moved.

critterjitter · 30/10/2008 15:32

their properties

oops!

Original poster
FAQ · 30/10/2008 15:38

oh no ours definitely went on lower than it would have gone on next year - last year houses on this street (2 bedrooms ones - ours is 3) were going for close to £130.

Grammaticus, it doesn't directly affect me, (the repossession/negative equity thing) as it's all in exH's name - I was just wondering if anyone knew what would happen.

OP posts:
Jampot · 30/10/2008 21:42

critterjitter - i think that's possibly right. Ont he face of it where I live the prices havent moved - EAs or vendors are unwilling to drop the advertised prices. They are all desperate for the instructions too - my friend's house had a difference of 600k between bottom and top valuations - she went with the top one and has had 0 viewings! wonder why that could be? They may drop it a bit after xmas!!

bodycolder · 30/10/2008 22:01

The agent I bought with says ours was his only sale in September and that was at about 30% off last summers price.The seller was a btl landlord and thought my offer was reasonable and he didn't try to push us up or anything.