House prices 'fall to 2004 level'

[Iron Condor]

House prices 'fall to 2004 level'
A load of bull IMO - they are just saying that to tempt buyers to the market, in reality prices have fallen maybe to levels of 2006 or even start of 2007.

Banks are now forcing valuations at 20% off peak prices.
Even if an identical house on your street somehow sold at 2007 prices last month, they wont value yours at that price.
The banks are protecting themselves against big falls.
If anyone foolishly wants to pay 2007 prices to secure a house they fancy then they need to make up the difference between what the bank value and what they want to pay + another mandatory 20% deposit to secure a good interest rate.
So if there are pockets where sale prices have not fallen much from peak recently then those sales must have been for cash or included a big deposit.

[NickFitz]

WGAS.

HTH.

[swamp]

My local estate agent hasn't changed its shop front in a year. The same properties seem to be there at the same prices twelve months ago.

The housing market has no liquidity; it's very hard to convert a property into cash right now. You just cannot really say what any property is 'worth' in such circumstances.

If the price of flats really collapses, especially after forced selling this year, then big houses will follow suit. Without first-time buyers there is no property market.

[Iron Condor]

The housing market has no liquidity; it's very hard to convert a property into cash right now. You just cannot really say what any property is 'worth' in such circumstances.

Not quite true. Just put it up for auction and see what the highest bid is.

[AtW]

Banks are now forcing valuations at 20% off peak prices.

It depends on deposit - they are forcing big enough to cover bank's arse (which it won't as prices will fall 50% off peak).

The point is that lieing biased barstewards are trying to make people believe that prices have fallen to level of 2004 where as it's not the case in my view - they are just trying (bordering on fraud in my view) to get buyers into the market.

[AtW]

Not quite true. Just put it up for auction and see what the highest bid is.

When people talk about "liquidity" they mean converting asset into liquid form (usually cash) without losing much money in process - this is not possible right now (for many types of assets without losing big chunk of investment), which is why markets are not liquid - housing market usually hits people more than anything because purchase of a house is usually the largest transaction normal people do in their lifetime.

So, when you can't sell asset without losing big chunk of money (that you would not lose if you can sit it out) it stops being liquid.

[Bumfluff]

I just had an independent open market valuation on my place today to get a figure for my solicitor of an actual achievable selling price. The property went on the market in June for £399k, I was told today it would achieve in current climate £280k-£300k so over 30% drop, scary.

[Fred Bloggs]

I just had an independent open market valuation on my place today to get a figure for my solicitor of an actual achievable selling price. The property went on the market in June for £399k, I was told today it would achieve in current climate £280k-£300k so over 30% drop, scary.

Probably realistic though. Funnily enough I looked in an estate agents window this morning for the first time in probably 5 or 6 years. I saw prices that I'd guess haven't shifted downwards at all and many properties on the market for I'd guess >12 months. Well no wonder they aren't selling. Nobody can afford to buy at those prices. Until everyone bites the bullet and accepts a 35% cut in value the overall market is doomed to stay frozen solid I'd say.

[AtW]

I saw prices that I'd guess haven't shifted downwards at all and many properties on the market for I'd guess >12 months.

Same here. They are playing the game they can't win, but I think the issue is not so much agents but sellers who can't yet appreciate that fact that they got owned by the scammers.

While on the subject - I don't watch TV (apart from news), are those house improvement programs (like buy house, improve it and sell for profit) still shown or they got cut?

[MrMark]

Same here. They are playing the game they can't win, but I think the issue is not so much agents but sellers who can't yet appreciate that fact that they got owned by the scammers.

While on the subject - I don't watch TV (apart from news), are those house improvement programs (like buy house, improve it and sell for profit) still shown or they got cut?

I'm given to understand there's a new series of Relocation,relocation (I haven't seen it myself). Has the UK gone completely mad?