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Property/DIY

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Original poster

Those in the know about all things to do with housing market.....

79 replies

dinny · 07/11/2008 14:07

Noddyholder (haven't seem you around for a bit actually), Expat ....etc etc

do you think the market will continue to fall despite the interest rate cut?

will it have a bit of a boom now because of it?

OP posts:

prada · 07/11/2008 14:32

yes i think the (housing) market will still fall despite the interest rate cut. banks just don't have the money to lend to people as the interbank rates are still high, and as per the news many banks are scrapping their tracker rates as i type....

the reason for the cut is to save our economy from going into the depths of economic disaster not to save the housing market - which of course would be nice for those who want to buy/sell etc!!

we bought a property in may, got a 0.14% above BoE base rate mortgage with 10% down, there is NOTHING out there right now like that and banks are asking for 20-40% deposits for mortgage rates that are remotely attractive.... so unless they start lending again at attractive rates then i don't see the housing market having a boom or recovering!! i hear more about it going down a bit more, but who really knows!!

why no one saw all of this coming years ago as a repurcussion of mass credit is shocking!!

anyway i don't doubt the value of our property has gone down... but nothing we can do about it now, we're going to have to hang on for the long term.... just glad we didn't go for a fixed rate as the tracker and interest rate cut will reduce our mortgage substancially come january....

would be interested to hear others thoughts?

Original poster

dinny · 07/11/2008 14:49

Prada, thanks for the post

we sold to rent two years ago are poised to buy when time is right

a property we were about to view has just had aksing price put UP by 125k as result of int rate cut, according to EA - mad!!!

OP posts:

TheBlonde · 07/11/2008 14:56

I think the market will remain stuck (lack of sales) for some time and that prices have further to fall

GrabShellDude · 07/11/2008 16:29

Dinny, they've put the price UP? . Completely mad. They're going to look pretty silly in a few months' time when they have to drop it again.

Are you still going to view?

herbietea · 07/11/2008 16:32

This reply has been deleted

Message withdrawn

critterjitter · 07/11/2008 16:41

Dinny
That is so funny! Did the vendors think there would suddenly be a 2007 rush to snap up their property? Did you cancel the viewing?

hf128219 · 07/11/2008 17:22

How much further % wise do people think there is to go? I have seen houses on the market drop by 20% since the start of the year.

lalalonglegs · 07/11/2008 17:43

Dinny - Oh my God.

As everyone else has pointed out, the banks aren't passing on interest rate cuts - to be fair they can't as they are over a barrel with LIBOR hikes - so can't see prices rising. No one can call the market but realistically, at least another year of pain as we wait to see how bad employment rates and repos get then bump along bottom for a few years.

bumbling · 07/11/2008 17:47

Even the conservative ones are predicting a good 20 per cent avearage and not pickin gup till 2010. The less conservative are suggesting 30 per cnet or more ... We sold to rent three years ago and we're waiting now. Not least because if interst rates go to 2 per cent, you may well get a fabulous mortgage if you've got a decent deposit, which if you sold to rent I guess you have. Lots of people have passed on some of hte cuts today but ares till being picky about who they lend to. Pain is coming and the fact it's got his bad is atrocious. Don't understand why everyone in housing doesn't understand that price rises aren't "free money", it has to come from somewhere and money on every level has just dried up... Good luck and keep us posted.

bongosmum · 07/11/2008 17:48

what do you think about this...i own my home outright. we decided to sell a few months ago. we paid 265k exc stamp duty, have spent 15k redecorating. we are keen to sell, so it went on at offers over 275 - we have had an offer of 250...bearing in mind that would be a loss of around40k - what would you do?

Lauriefairycake · 07/11/2008 17:48

according to the guy on the radio today we are one year (obviously is a guess) from the bottom of the housing market

A lovely house near me was 299, now on at 199 fabulous price, they must be desperate to sell

bongosmum · 07/11/2008 17:55

oh god...maybe i should just take the offer. thing is, it's actually money and not just paper. i want to move..can someone just tell me what to do?

Original poster

dinny · 07/11/2008 17:56

we're not going to view it, wasn't one of our must-sees, just seemed interesting

er, not at 575 for a 3 bed it ain't, pmsl

OP posts:

TheBlonde · 07/11/2008 18:00

bongosmum - do you need to move? if not you may be better to sit tight

are you moving up the ladder? if so then you will be getting your next place cheaper

bumbling · 07/11/2008 18:01

Bongosmum, If you really really need to sell and can't wait for whatever reson then do it as things are only going to get worse. That at least everyone is agreed on, how much worse and how long for is what they can't agree on now. Is there no chance you can rent it out and rent yourself? If not flog it now, quickly before the market drops again. Have you heard of gazundering, all the rage in the right places. Just get it away quick and prioritise chain free, big deposit types if you can, could even say deal needs to be done within six weeks or it goes back on and don't take it of the market. Worth taking less from the right buyer who won't muchk about in case someone else paying full price etc pulls out further down the line. GOod luck.

GrabShellDude · 07/11/2008 18:01

Bongo, if you are desperate to move and can afford to do so (even if just about) at that price take it. £25k under asking is not a bad offer the way things are. If you refuse this, the next offer could come in even lower.

That's assuming the buyer is in a good position btw.

QwertyQueen · 07/11/2008 18:01

If you want to move I would take the offer!
WHy not rent it out?

lalalonglegs · 07/11/2008 18:02

bongosmum - If you want to move, take the money. If the people are saying they won't go above stamp duty threashold, find out what offer would be if there was no threshold and then discount difference (ie, if would pay £265k, that would mean an extra £6,000 or so stamp duty so sell to them for £259k). You will pick up another house where the loss might have been even greater than your £40k. Frustrating but you have to roll with the punches on this.

prada · 07/11/2008 18:10

bongosmum it depends, if i needed to leave the country and the money had to be released then i would take the offer! otherwise rent it out and hang onto it for a few years.

my thoughts (& hopes) are that the housing market will recover at some point...it has to, but when who knows! surely people will not continue to sit on the fence and rent forever and those that are renting will have the cash to spend - somewhere someday?!

there is not enough housing in the UK for the amount of people living here, it's been a fact for a number of years....

i guess the 2 main reasons people holding out on buying who can afford to buy:

fear of negative equity
getting a decent mortgage

as soon as some good mortgages come onto the market and banks sort themeselves out people will start buying and for those that buy they will get a good deal as those people selling are selling for a good reason and will take offers.

it is important to note there is less property on the market nowadays and why!

and when the economy and housing market picks up, people who want to sell who are holding tight now will put their property on the market and upgrade etc... so the cycle of buying, selling, chains etc begins again!

but having said that there's unemployment and recession to deal with before!!

who knows! just my tuppence!

JimmyMcNulty · 07/11/2008 18:23

Some people might put their prices up, and a few people might even panic-buy - there are always fools ready to part with their money! But on the whole I think not - as someone else said, the reason for the cut is that we are going into a nasty recession and this will have far more impact than whatever interest rates are.

It's not clear whether the new rates will be available to new borrowers, either, so the impact will be limited. Most of all, no one is getting away with fraudulent self-certs and 6 x income anymore (and won't for a long time to come). Interest rates are a drop in the ocean, IMO.

hf128219 · 07/11/2008 18:26

So we are renting at the moment. When do you think we should buy??

bumbling · 07/11/2008 18:38

Not before next autumn. Golden rule is never try and sell at the to or buy at the bottom. Go for it when you can afford it and you can get a decent deal that you CAN afford for the next 25 or whatever years. The reason for the credit crunch is that people did things they COULDN't afford if circumstances changed. Borrowing £50, £100 grand less for your working life is a monumentally life changing decision.

bongosmum · 07/11/2008 18:40

wow!! thank you all for the advice...i really do appreciate it.

hertsnessex · 07/11/2008 18:45

our house is for sale and it is now £100k less than last yr - and 50k less than we put it on the mkt for in july. fingers corssed we sell soon as the one we want to buy from a developer has jst been released. we are lucky in that we still have equity, but if we have to drop another 50k it will make things v v tight.

i think if ppl are buying and need 100% mortgage then its a risk if its a short term project, but if your mtg is 70% or lower then risk is now minimal.

hf128219 · 07/11/2008 18:49

My gut feeling is if a house just goes on the market at 550K - it is really only worth 400K. Most of the houses I have viewed have gone at 550K, then reduced to 499K and then further reduced to 450K - and still not selling.

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