In the news reported on several blogs was the “fact” that house prices supposedly went up in September, which apparently bucked the trend. The source quoted for this is the mighty RightMove web site, which stated that prices went up by 3.1 percent.
OK people, please excuse me but I am about to RANT.
Just because panicked vendors who may have been watching the media have suddenly noticed that house prices have been dropping, decide to test the market by putting their property up for sale at an unrealistic asking price, does not mean that house prices are up.
Remember, we no longer have the HIPs requirement of ‘paying to put your house on the market” which deterred people in the past from testing the water. This is Right Move trying to talk the market up by quoting it’s own web site traffic source. Nothing more.
However, in the best quote I’ve read this year on property prices Miles Shipsade from RightMove said:
Buyers and sellers are staring each other out, and it’s a question of who will blink first.
Even if they wanted to, buyers cannot blink unless lenders release more funds for mortgages.
‘As that’s not going to happen, there are likely to be some blinking sellers this winter.’
That’s pure comedy gold.
Danny from One London Property Says…
If you want to read about how the current dearth of contradictory information regarding the property market and whether house prices are rising, falling or whatever then pop over to Danny Williams’ blog spot at One London Property. Danny is one of the few agents in London who really tells it like it is without all the fluff and flannel usually given by agents. He explains by comparing the property market to the retail market:
The customer:-
- Walks past shop window, browsing displays and noting prices
- Walks into shop and looks more closely at various ranges
- Tries on garments of particular interest
- Decides if garment a) meets their requirements and b) is affordable
- Makes purchase and concludes transaction, becoming garment’s new owner
As a shop owner, clearly, the sole objective is to get the customer to point 5, using whatever sales & marketing means are available to increase the likelihood of them doing so.
The equivalent process in the property market is as follows…
The prospective purchaser:-
- Browses properties within their budget and in preferred location/area online
- ‘Clicks-through’ on properties of interest for further information
- Arranges to view the properties that may be suitable
- Decides on most suitable property, either makes an offer and then speaks to a mortgage broker to ascertain affordability, or vice versa
- Proceeds with purchase and becomes property’s new owner
No Mortgage? – No Deal
“As with the retail industry, point 5 is the sole determinant for the state of the market. Points 1-4 are largely irrelevant in the grand scheme of things and the worrying thing is that many ‘would-be buyers’ are stumbling at points 2, 3 and/or 4. The two key reasons for this are, firstly, many know they will be unable to obtain a mortgage but, as with the retail industry, that doesn’t prevent a little aspirational window-shopping. They are NOT prospective purchasers! They are property owners researching what their home is worth and what comparable properties are on the market for.”
Thanks Danny. Couldn’t have put it better myself!
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Janet Trowell Discountletting.co.uk Join me on Twitter LinkedIn
