message to Tumbleweed

My late mothers house has finally been sold after 18 months on the housing
market... original asking price £145k, dropped to £135k after xmas 2005 due
to falling market and excess supply in the area, offer accepted of £130k.
And all for a 3 bedroom detached bungalow in a desirable quiet village with
a pub, chinese takeaway, village store and post office.
Also... 8 miles away nearly new houses are being sold on for prices lower
than the owners paid to the builders.
Negative Equity is back again in Scunthorpe.

Re: message to Tumbleweed

"biggirlsblouse" <> wrote in message
news:hePtg.2846$
> My late mothers house has finally been sold after 18 months on the housing
> market... original asking price £145k, dropped to £135k after xmas 2005
> due to falling market and excess supply in the area, offer accepted of
> £130k.
> And all for a 3 bedroom detached bungalow in a desirable quiet village
> with a pub, chinese takeaway, village store and post office.
> Also... 8 miles away nearly new houses are being sold on for prices lower
> than the owners paid to the builders.
> Negative Equity is back again in Scunthorpe.



If you'd put that house on the market at 135k 18 months ago, would it have
been snapped up? Were you just asking too much? Looking at house prices in
the area, 130k is high compared to some of them! Just been looking at house
prices in Scunny (on 'nethouseprice') the prices are incredible to someone
from "The South". a detatched house for 47k, unbelievable! Must be an area
with little employment? You say 'falling demand and oversupply' but its all
down to the local situation, where i live (near Reading) they are infilling
like crazy,and selling them.

Example, 2 bed flat, [50% ownership with housing assoc], £100k. New 2 bed
flats go for £220k or so, older from 170k upwards. Its a different world.

We are just about to put a house on the market will be interesting to see
how long its on sale for, its down on the south coast. I would expect to
get very close to the asking/valuation price, (just about double yours)
which seems fair looking at similar houses. AFAICS the prices are roughly
static there and have been for the past year or so.

Oh, and there _still_ hasn't been a house price crash and we are more than
half way through the year, I dont see the merchants of doom posting every
day now?
--
Tumbleweed

email replies not necessary but to contact use;
tumbleweednews at hotmail dot com

Re: message to Tumbleweed

Tumbleweed wrote:

> Oh, and there _still_ hasn't been a house price crash and we are more than
> half way through the year, I dont see the merchants of doom posting every
> day now?

I still say house prices are going to fall substantially.
I still say the next move in interest rates is up.
I still say inflation is rising.

Are you with me on any of these yet?...Or did Specsavers do a good job
with your rose-tinted glasses?


Irma

Re: message to Tumbleweed

"Tumbleweed" <> wrote in message
news:
>
> "biggirlsblouse" <> wrote in message
> news:hePtg.2846$
>> My late mothers house has finally been sold after 18 months on the
>> housing market... original asking price £145k, dropped to £135k after
>> xmas 2005 due to falling market and excess supply in the area, offer
>> accepted of £130k.
>> And all for a 3 bedroom detached bungalow in a desirable quiet village
>> with a pub, chinese takeaway, village store and post office.
>> Also... 8 miles away nearly new houses are being sold on for prices lower
>> than the owners paid to the builders.
>> Negative Equity is back again in Scunthorpe.
>
>
>
> If you'd put that house on the market at 135k 18 months ago, would it have
> been snapped up? Were you just asking too much? Looking at house prices in
> the area, 130k is high compared to some of them! Just been looking at
> house prices in Scunny (on 'nethouseprice') the prices are incredible to
> someone from "The South". a detatched house for 47k, unbelievable! Must
> be an area with little employment? You say 'falling demand and oversupply'
> but its all down to the local situation, where i live (near Reading) they
> are infilling like crazy,and selling them.
>
> Example, 2 bed flat, [50% ownership with housing assoc], £100k. New 2 bed
> flats go for £220k or so, older from 170k upwards. Its a different world.
>
> We are just about to put a house on the market will be interesting to see
> how long its on sale for, its down on the south coast. I would expect to
> get very close to the asking/valuation price, (just about double yours)
> which seems fair looking at similar houses. AFAICS the prices are roughly
> static there and have been for the past year or so.
>
> Oh, and there _still_ hasn't been a house price crash and we are more
> than half way through the year, I dont see the merchants of doom posting
> every day now?
> --
> Tumbleweed

I doubt if we had dropped the price initially if it would have
sold..remember we had already had offers of £115k and £123k which were well
below the £145k asking price. Also...when we first put the house on the
market in jan 2005 I did not influence the estate agent to price upwards and
gave instructions to price it to sell within 3 months.
At the end of the day it is about someone actually seeking to live in that
location, and there were only 2 houses which were close enough for an old
lady to get to the shops that is not hilly. She already lived in the village
but in a big house down a steep hill. If it hadn't been for her buying it I
think we would have been here next year without selling.

Re unemployment here...obviously employment isnt at the levels enjoyed by
you lucky buggers... but it isnt excessive. The real problem is low salaries
here.
Whereas I am lucky ....I have the national average salary because of my
employer being a good payer..the average salary for the area is about
£18-22k region.
One of the guys who works for me is on £24k and he has just bought his first
house. It cost him £98k from the builders and is a brand new semi.
Incidentally, my daughter and her boyfriend have just bought an ex council
house semi in Killingholme (a local dive!) for £60k.... but needs must when
you need a roof over your head. In the case of that house location is the
negative factor as is being ex council.

Re house price correction... we still have a way to go I think for this to
happen, but I feel sure that history will repeat itself.
For a correction it needs higher interst rates AND higher unemployment. At
least one variable that had an effect namely the bank rate has been taken
out of the political arena now, but the other 2 factors will have an
affect..and are rising or forecast to rise. As inflation rises due to oil
and energy prices so must bank rates...and there may hit a point with rising
energy prices where manufacturers profitability is affected, and then
unemployment will rise.

Anyway..one way or another time will prove whose right!

Re: message to Tumbleweed

biggirlsblouse wrote:

<snip>

> ...my daughter and her boyfriend have just bought an ex council
> house semi in Killingholme (a local dive!) for =A360k.... but needs must =
when
> you need a roof over your head. In the case of that house location is the
> negative factor as is being ex council.

Could be a good move. A lot of the very big Council Estates round here
in SW London seem tarnished and tainted.

But they are well-built 1930's houses with high ceilings in spacious
avenues, with plenty of grass and plenty of room for expansion.

Hopefully your daughter has chosen well.