HBOS - "House prices down 2.5% in March"

[PAH]

The banks may relax these rules once they start getting lots of property on their books.

Or they may realise that property is a better long term investment than fraudulently repackaged sub-prime mortgages, and go into BTL themselves.

[BlasterBates]

Sell now, don't wait, the trend will continue for several months, and it is accelerating. Every month 1-2% is a lot, that could be as much as 5-6%.

[PAH]

Sell now, don't wait

I wonder if many will attempt to sell and we'll see whole streets lined with for sale signs like the early 90s.* There must be a lot more people thinking of selling than buying at the moment.


* In fact I saw such a sight the other day. 4 or 5 houses on one block up for sale. Maybe they just have a very bad neighbour though.

[TimberWolf]

I wonder if many will attempt to sell and we'll see whole streets lined with for sale signs like the early 90s.* There must be a lot more people thinking of selling than buying at the moment.


* In fact I saw such a sight the other day. 4 or 5 houses on one block up for sale. Maybe they just have a very bad neighbour though.

I've seen streets of flats in posh parts of town heaving with for-sale signs.

[ASB]

My mum did this for a living - there's a whole industry based on selling repossessed properties for the banks.

IIRC, she had to get 3 valuations and take the average. It then has to be on the market for 3-6 months before they are allowed to drop the price, even then only by 10%. To get the big drops it has to be unsold for quite a while.

The banks may relax these rules once they start getting lots of property on their books.

The system changed a few years ago because it got such a bad press. Now the property is placed with an agent at what they reckon is fair market price. They must then process offers in the normal way referring them back to the seller (the bank in this case) they must then advertise that offer and invite any higher offers. This is supposed to reduce the level of stitch-ups.

[NoddY]

To compound matters, the drops are priced in a depreciating currency too.

[DimPrawn]

I wonder if many will attempt to sell and we'll see whole streets lined with for sale signs like the early 90s.* There must be a lot more people thinking of selling than buying at the moment.


* In fact I saw such a sight the other day. 4 or 5 houses on one block up for sale. Maybe they just have a very bad neighbour though.

Anyone know which company makes the signs for estate agents? I'm buying their shares big time with the money from the sale of my BTL "portfolio".

[Pickle2]

To compound matters, the drops are priced in a depreciating currency too.

Yes, we will go exactly the same way as the us market and us dollar, and for exactly the same reasons.

[Moscow Mule]

People need to think more long-term. Looking at short-term fluctuations is like watching share prices day by day. Having made over 200% on my house since I bought it, I don't think a few monthly drops is going to make me panic, and whatever values are lost over the next few months will be recovered by rises over the next few years anyway.

House prices go up at 2.5% a year (averaged since records began). This isn't conjecture or feeling but FACT.

I don't see any reason why there will be any deviation from this, therefore we're due a correction. I haven't done the maths to work out how much of a correction.

[BlasterBates]

Of course it may just be the ups and downs, then again....

it could be a hard landing

....hopefully not too hard.