Londoners too optimistic about house prices
December 19, 2007
According to a recent report the average amount of time that properties are remaining unsold for in London has rocketed to 87 days, which is the highest in five years, and experts state that this is because Londoners are too optimistic about house prices, and are asking for far more than the property is actually valued at in light of the falling house prices.
Estate agents have described the situation as a logjam, where sellers are creating a huge gap between asking prices and actual property values by refusing to accept offers that they deem as too low.
Estate agents are warning sellers in the London area that if they do not get realistic about asking prices their properties may remain unsold altogether, and this could mean eventually having to take even more of a financial hit if property prices continue to tumble. Many homeowners have put their homes up for sale as Christmas approaches, but experts state that these homes could still be on the market in spring or beyond if sellers do not look at more realistic asking prices.
An official from the National Association of Estate Agents stated: ‘Lots of whammies came at the same time - the introduction of home information packs, the failure of Northern Rock, the negative press about the US sub-prime market. They all hit about three months ago. That is why it is taking so long to sell. The only properties that are moving are the ones where a price correction has been taken into account by the seller. The ones that are hanging around are where the vendor thinks it will be all right on the night - but it won’t be.’
One industry official stated that house prices in London had already taken a hit of 5%. He added: ‘Whenever market sentiment turns, it always takes about 90 days for vendors to believe it,’ he said. ‘We are in a period where a lot of sellers are still not prepared to believe the world has changed.’
Alan Wright
19th December 2007
Related Articles
- The good times are over for rising house prices According to a number of experts and industry professionals the era of rapidly rising house prices is to come to an end in 2008, with
- Is it over for the era of rising house prices? Over the past few months most people have heard industry professionals insisting that the housing market is now going through a cooling period, and that
- Fall in level of confidence over house prices A recent report has shown how the level of confidence in future house prices in the UK has tumbled compared to last year. The recent
- London properties remaining on market for longer The property market has taken a hit over recent months due to a number of factors. This includes falling property prices, high rates of interest,
- Many consumers expecting property values to rise According to a recent survey many consumers in the UK continue to think that house prices will continue to rise, despite evidence that shows house
Comments
Got something to say?