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Housing market

In my paper a couple of days ago there was a report that sellers of many properties, and throughout many parts of the country, are having to reduce their price by up to 20%. Whereas I take that with a pinch of salt as not being specific enough, agents say that sellers are starting to outnumber buyers. As it's the high point of the year for property sales (or was, pre-pandemic), I take this as a sign that things are changing. Even London was mentioned, but reductions there were relatively small.
 
Ponty said:
Latest residential research update from Savills just landed. Summary as follows:


Up and up, but for how long?
With Nationwide reporting that annual house price growth remains as high as 11.2%, we’ve revised our mainstream house price forecasts. In summary:

  • We expect the supply and demand imbalance to cause house price growth of 7.5% over the course of 2022 – even accounting for a marked slowdown in price growth over the remainder of the year.
  • In 2023, we anticipate that the combination of higher interest rates and the cost of living squeeze will cause house prices to dip by 1%.
  • From there, we expect modest single digit growth over the remaining three years of our forecast period. While the proposed relaxation of mortgage regulation would provide some upside to these figures, it is still sensitive to the path of interest rates.
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I wasn’t aware of this “proposed relaxation of mortgage regulation.” That’ll push prices up for sure.
 
Mike Reed said:
In my paper a couple of days ago there was a report that sellers of many properties, and throughout many parts of the country, are having to reduce their price by up to 20%. Whereas I take that with a pinch of salt as not being specific enough, agents say that sellers are starting to outnumber buyers. As it's the high point of the year for property sales (or was, pre-pandemic), I take this as a sign that things are changing. Even London was mentioned, but reductions there were relatively small.
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no sign of that here ....probably 10% over

However we are looking at a retirement flat in a fairly posh area which sold for 235k in 2008 and is now 165k !!! That's because retirement housing is harder to sell and service charges etc
 
hifinutt said:
no sign of that here ....probably 10% over

However we are looking at a retirement flat in a fairly posh area which sold for 235k in 2008 and is now 165k !!! That's because retirement housing is harder to sell and service charges etc
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I think also too many such purpose built apartments were built so this is very different to the shortage of housing in other parts of the market.
 
Some years back I was in Manchester for some tedious meeting or other. I mentioned to the taxi driver that a lot of flats seemed to be under construction, and he said 'Park a van overnight round here and they'll convert it into luxury apartments'.

There's a couple of 'luxury developments' near here. One, for over-60s only, is in what was originally a school, then a convalescent home, then nurses' accommodation, and finally offices. The flats are overpriced, and the service charges astronomical, so unsurprisingly quite a lot remain unsold. The other one is in what was a stately-ish home, then a girls' school. The flats there look equally pricey, so it'll be interesting to see how quickly or otherwise they sell.
 
hifinutt said:
no sign of that here ....probably 10% over

However we are looking at a retirement flat in a fairly posh area which sold for 235k in 2008 and is now 165k !!! That's because retirement housing is harder to sell and service charges etc
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There’s one of those near me. I can see the benefit. Generally in very nice areas, often close to a town and amenities, no property maintenance and much, much cheaper than an equivalent property without age restrictions. Seem to sell very quickly. If you get old and live in a house, you’d have to pay people to maintain it anyway, so may as well take the headache away altogether. I see quite of few of them (all very proper ladies) dog walking in the park, they seem to really enjoy the place.
 
I looked at a retirement flat for my mum before Dementia made that impossible.They were nice, small and with almost punitive service charges. I'm getting close to retirement but I'll need to be a real crock before I consider a retirement development.
 
Well i have spent months researching them . Some i dont know how they get the service charge as it pays for insurance , water rates , garden maintenance , communal areas and a warden and emergency service . At an average of 3.5k per year its a bargain

And lecson , if you saw the incredible stover court in newton abbott ( the home of graham speakers) you would be BLOWN away !!! Built on the old hospital with old stone and unbelievable facilities . Library , parking , Gp next door , shops , wow i was mega impressed . Its NOT suitable for dementia though
 
hifinutt said:
Well i have spent months researching them . Some i dont know how they get the service charge as it pays for insurance , water rates , garden maintenance , communal areas and a warden and emergency service . At an average of 3.5k per year its a bargain

And lecson , if you saw the incredible stover court in newton abbott ( the home of graham speakers) you would be BLOWN away !!! Built on the old hospital with old stone and unbelievable facilities . Library , parking , Gp next door , shops , wow i was mega impressed . Its NOT suitable for dementia though
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How suitable would they be for someone who likes music playback or collects electric guitars?
 
And even then most of the fellow tenants will be too deaf to hear.

When Mrs H still lived with her parents, they had a neighbour in her 70s. You could hear her TV set from the end of their road.
 
Mike Reed said:
In my paper a couple of days ago there was a report that sellers of many properties, and throughout many parts of the country, are having to reduce their price by up to 20%. Whereas I take that with a pinch of salt as not being specific enough, agents say that sellers are starting to outnumber buyers. As it's the high point of the year for property sales (or was, pre-pandemic), I take this as a sign that things are changing. Even London was mentioned, but reductions there were relatively small.
Click to expand...
Some people are taking advantage of the overheating market by overpricing their houses. There's one such on my street, it's probably 10-15% heavy. If it works, good for them. However there is the risk of having it hang around and interest wanes. This happened to the people who sold me this house, it was overpriced by 20-25%. I'd seen it and dismissed it, then it was reduced and reduced again. I placed an offer and after some haggling we did a deal. I'm very sure that if they'd advertised it lower in the first place it would have sold sooner and for more. Not to me, of course, so I'm rather glad they did what they did and do consider myself fortunate.
 
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