The Times – US house prices crash 23% in just 3 months

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This topic contains 22 replies, has 11 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 5 months ago.

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  • #54103
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    Anonymous
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    http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article4207249.ece

    and this is only the beginning, many expect western (US/European) house prices to lose 50% (or more) of their value before this property cycle hits rock bottom.

    Meanwhile, ITN confirm that the number of new UK mortagage applications has dropped to the lowest ever levels. This is a clear indication of where the UK market is going….(and spain will surely follow)

    http://itn.co.uk/news/b0c189eb85584cb21e47a9b1c139056f.html

    and of course this is especially bad news for spain where the idiot developers/agents have left us with 2 million surplus homes. If you wanted to sell up and move back to the UK then good luck to you, it will cost you dearly in both time (to sell) and money. Many will find themselves unable to afford to leave spain now due to the collapse of the spanish market and the exchange rate. You can thank the unregulated property professionals for all of this. But don’t worry, their reward is the near-destruction of the spanish property market for the next decade or two. Their jobs will soon be gone.

  • #84778
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    Anonymous
    Participant

    Kingy said:

    the idiot developers/agents have left us with 2 million surplus homes.

    And:

    You can thank the unregulated property professionals for all of this. But don’t worry, their reward is the near-destruction of the spanish property market for the next decade or two. Their jobs will soon be gone.

    Its clear you blame the developers/agents – but they are not the ones who allocated the land for development, set the density levels, stamped the planning permissions to construct grand scale ‘urbanisations’, costal development etc.

    Yes, there are many illegal builds and some developers/agents are to blame but the real crime lies with the Spanish Government and local representatives and regulators who grant planning permission.

    I often find its all too easy to just blame the developers/agents yet again.
    Whilst some are corrupt – many are not – yet the trend on this board seems to be to tar them all with the one brush.

    Lets try and use our thinking caps in future before starting the witch-hunt!

  • #84667
    Profile photo of Anonymous
    Anonymous
    Participant

    Kingy said:

    the idiot developers/agents have left us with 2 million surplus homes.

    And:

    You can thank the unregulated property professionals for all of this. But don’t worry, their reward is the near-destruction of the spanish property market for the next decade or two. Their jobs will soon be gone.

    Its clear you blame the developers/agents – but they are not the ones who allocated the land for development, set the density levels, stamped the planning permissions to construct grand scale ‘urbanisations’, costal development etc.

    Yes, there are many illegal builds and some developers/agents are to blame but the real crime lies with the Spanish Government and local representatives and regulators who grant planning permission.

    I often find its all too easy to just blame the developers/agents yet again.
    Whilst some are corrupt – many are not – yet the trend on this board seems to be to tar them all with the one brush.

    Lets try and use our thinking caps in future before starting the witch-hunt!

  • #84780
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    Anonymous
    Participant

    don’t defend the idiots loco, they don’t deserve it .

    And you seem to have completely missed the message

  • #84671
    Profile photo of Anonymous
    Anonymous
    Participant

    don’t defend the idiots loco, they don’t deserve it .

    And you seem to have completely missed the message

  • #84781
    Profile photo of rt21
    rt21
    Participant

    I think I would tend to agree with Marcoloco 10’s views that responsibility for the demise of the Spanish property market has to be shared by other parties such as the Spanish Government, Regional authorities and banks, who in their own different ways shaped the environment in which the agents and developers acted.

    I think it will take many many years to sort itself out unless something unforseen happens.

    Richard

  • #84673
    Profile photo of rt21
    rt21
    Participant

    I think I would tend to agree with Marcoloco 10’s views that responsibility for the demise of the Spanish property market has to be shared by other parties such as the Spanish Government, Regional authorities and banks, who in their own different ways shaped the environment in which the agents and developers acted.

    I think it will take many many years to sort itself out unless something unforseen happens.

    Richard

  • #84783
    Profile photo of katy
    katy
    Spectator

    According to Diario Sur (yesterday) prices in Estepona fell 6.5% in the second quarter, biggest falls were inland at 10.5%. Marbella bucked the trend and had an increase at 2.15%. Please don’t shoot the messenger 😆

  • #84677
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    katy
    Spectator

    According to Diario Sur (yesterday) prices in Estepona fell 6.5% in the second quarter, biggest falls were inland at 10.5%. Marbella bucked the trend and had an increase at 2.15%. Please don’t shoot the messenger 😆

  • #84795
    Profile photo of Inez
    Inez
    Participant

    What on earth do they base these prices on? No way pedro are they correct.

  • #84701
    Profile photo of Inez
    Inez
    Participant

    What on earth do they base these prices on? No way pedro are they correct.

  • #84828
    Profile photo of Anonymous
    Anonymous
    Participant

    Inez don’t just say “no way are they correct ” follow it up with your views.

  • #84841
    Profile photo of Inez
    Inez
    Participant

    My view is and always has been that there is nothing solid to base prices on.

    Sellers pretty much ask for what they want and most agents add their high comms on and a bit more for negotiations. Now in the UK the price agreed upon is logged, registered and open for all to see. A valuer takes a comparison from agents who have sold in the same street and therefore the valuation is based on actual sales price according to that time and is a far truer indication of the ‘correct price’ (true price being what someone is prepared to pay for it!)

    Here its euros per sq metre with slight variables according to quality age etc but not cos the view is better!

    A price is still considered good if it is lower than the price the developer is trying to sell it at!!!!!

    A couple of years ago I had a bank in to see me for business. I have always wanted to be able to offer buyers a true bank valuation so they can make their own mid up whether the price is good or not or offer accordingly. I asked the guy for a price on a property. He told me that they had given the mortgage out 18 months prior and so there was a natural increase of 10%!!! This on a property we couldnt get rid of at auction at a much lower price!!!

    As most escritura prices dont include b money how on earth can one use those? Off plan properties are completing, BUT we all know the true price has fallen since then

    So I think the reason behind the supposed increase is all the completions of off plans where the buyers cannot sell on and therefore decide to complete are the ones pushing the prices ‘up’

    I still cannot work oput what they base the increases and decreases on – asking prices?

    Otherwise someone has a dartboard and a bad hand!

  • #84851
    Profile photo of Anonymous
    Anonymous
    Participant

    Re: Precipitous US housing price declines — this number drastically oversimplifies the situation here in the US just as I’m sure similar numbers are fairly meaningless when applied to places like “Spain” or “The UK.” In fact, my home in Seattle is still gaining value. Remember, in the US we have basically no public transportation, so the outer suburbs are dying on the vine while we city dwellers are watching reformed Hummer owners swarm our neighborhoods. Fun is!

    Location, location, location. As it is in Spain, it is in the U.S., in the U.K. — Isn’t somebody named Mark saying that too?

  • #84861
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    Inez
    Participant

    Hi Sherry – thats pretty much true everywhere, but the costas here are very different. Thanks to the arcaic emplyment laws, foactories such as Gillete and Ford who wanted to move their operations here years ago decided against it.

    Al we have is the weather (legally anyway) and so people wanting to live here either have an overseas income or are retired. Otherwise its all a service industry – which is the one that suffers in bad times.

    Location here yes its sound everywhere you buy, but even here people are saying they dont have to buy the holiday home now – its not a necessity so it can wait.

    Therefore even good location is taking time to shift.

  • #84864
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    Anonymous
    Participant

    Sherry, you’re right – top locations (in all price ranges) anywhere in Spain are still moving albeit at a much slower pace – the top of the market in Marbella is bouyant with 3/4 houses over €5,000,000 recently (last few weeks) sold and another 4/5 under offer in La Zagaleta. (the talk on the street is of 10 more biggies been sold but it could just be everyone getting carried away)

    Other than these “deals” and selected sales in selected areas/ streets/ blocks of flats the market is frozen and looking over the abyss!!!

  • #84868
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    Anonymous
    Participant

    “the top of the market in Marbella is bouyant”
    LOL
    I bet they are selling like hotcakes!

  • #84870
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    Anonymous
    Participant

    @UBEDA wrote:

    …the talk on the street is of 10 more biggies been sold but it could just be everyone getting carried away.

    Or it could just be 10 wise people jumping ship and 10 suckers catching falling knives?

  • #84871
    Profile photo of Inez
    Inez
    Participant

    No – I wont mention farming. At all 😕

  • #84876
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    katy
    Spectator

    Wonder if Chris McCarthy has sold his 3 million plus villa yet 🙂

  • #84878
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    Anonymous
    Participant

    Inez, I have just returned from a pre project meeting in London in relation to a up scale conversion scheme in between Fulham and Chelsea , yes there are just a few of them left , normally I would describe this meeting as a formality with clients keen to commence the scheme and see their ever increasing returns grow , this area is about as bomb proof as it gets attracting a good strata of high end worth buyers , However times have changed and how , during last month’s meeting I did not hear any mention of a down turn or slow down it was all about Hand made German Kitchens and bespoke sliding folding doors , whoops wind forward 30 days and now we are taliking about how nice the kitchens are in Magnets and did I know that Jewsons are now selling door systems , er answer yes, but not for 2 million pound flats off the Fulham Rd.

    The next meeting is scheduled for a weeks time , for the first time in living memory I have two quotes in from builders who are ready to start work , yet another amazing first , having seen the figures I do not feel that this project will progress , the clients appeared to have rotated 180 degrees ,
    at this meeting were two additional people who are not normally part of the process at this stage , one was a surveyor representing the bank , ( the clients are borrowing just under 50% ), so the bank is at minimal risk , the other was a well informed estate agent , who pulled no punches on the resale values and gave a convincing argument as to why he had recently re amended his valuations , if I was in any doubt about the UK property market before, I am not now , Prime and I mean Prime location or not , things are certainly getting tougher

  • #84880
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    Anonymous
    Participant

    GSB – Prices in prime central London have dipped in recent months by as much as 10% in some areas. This is probably due to excassive over-heating of the upperend of the residetnial market in the first instance and secondly as a direct result of the credit problems affecting the wider market.

    Only those super-properties (upwards of £25m) appear not to have been affected in anyway – mainly because we are dealing with buyers would do not rely on credit in the first instance.

    Interestingly, the Candy Bro.s are reporting strong sales at their One Hyde Park development – though they have admitted to seeking a joint venture partner to assist with their redevelopment of Middlesex Hospital development.

    As for spec. well developers will obviously look at ways to reduce costs especially if they can no longer command the strong values of 6mths back.

    And as for the banks bringing in surveyors – about time!

  • #84889
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    Anonymous
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    Katy, doubt it; wrong area, wrong street etc and market only strong above €5,000,000 at the moment – wouldn’t worry he has a few bob stashed away anyway ………….

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