Asking prices slide, and more falls to come

Jo Public: For one who self-proclaims to be "a nice guy", you seem to be unable to be civil to others in any of your posts!

Of course you have done well out of the market from 1995 - NO skills required there at all. Assuming you sold your last property pre-mid 2007, it would have been virtually impossible to lose on any of them. You have shown yourself to be one of those that the HPC people love to hate - one of the many who see property simply as a profit-making vehicle, making money out of others on your way to amassing your nice little nest-egg so that you can start again when the next cycle kicks off. You are, in fact, one of the causes of the boom/bust cycle that we ALL - Agents, HPCers, buyers and sellers alike - would far rather see ended for more sensible and stable market.

Thank you for identifying yourself so there is no doubt who we are talking to...

• 21 December 2010 11:26 AM

Jonnie

Let's put your questions to bed, no I don't have a chauffer, I drive my own car like most of us but I am very happy with my wife.

1: I've already done well from the market thanks, like I stated before I've bought/sold 5 houses in the past 15 years and have managed to gather enough capital to buy an average priced house from it. It hasn't all been HP inflation either, I've worked hard on some of them, one project taking 2 years, hard work but it paid dividends.
2: I always do my research, I look at everyone's opinion, even when it's one eye'd and retarded (step forward and take a bow Jonnie)
3: Absolutely not, I look at everything from a neutral perspective, I'm only interested in the truth, unfortunately there are lots of opinions from those with a VI, I like to think of those are people who are full of wind & piss!
4: It's not always 6 months, I think 6 months is a reasonable time frame to see what's what and for the market to do it's thing, whatever way it goes.
5: No I wouldn't say I was bitter, I don't have anything to be bitter about, sure I'd like to win the lottery but I'm doing ok, life isn;t wonderful but I'm happy with my lot. I'll think you'll find most people are, it's just the greedy that find it difficult to be happy.
6: I come here when I have 5 minutes to spare, it's quite funny at times, occasionally there an intelegent comment from a real EA, that alone is worth the torture of reading some of the horse shit you spout.

Aceofspades

Yeah I am a nice guy as it happens, I pay my rent without any problems, my landlady quickly sorts out any issues, the letting agent is friendly and helpfull, I can't ask for more. All this while the house prices slowly trickle downwards, in fact the % drop in house value since I've been renting will easily offset the cost of my rent, I don't even have to factor in the monthly return I get from my investments. Forcasts look like -7% to -15% for house prices in the next 12 months or are you going to stick your neck out and tell everyone here that house prices are going to rise ???

• 20 December 2010 13:17 PM

Jonnie

Whatever or whoever Jo Public is, I'm not sure your comments are justified.

Everyone is entitled to an opinion, it doesn't matter what that opinion is. Responses like yours only adds fuel to the fire.

Let's not drag this forum down due to a few stray HPC members having a say, rise above it and stop acting like a spoilt child.

• 18 December 2010 16:46 PM

Jo Public,

………………..are you that same pillock who was on here a while ago banging on about your wife being a great bunk up and blithering on about having a chauffer? If not you sound just like him.

Anyway usual questions for you;

1. Clever lad like you, why didn’t you use your amazing forecasting ability to call the market right in the past?
2. If you are not gracing us lucky agents with your presence for 6 months then why are you hanging around an estate agents blog site like a closet poof in a gay bar?
3. When a report comes out do you just read the bits that you like and not the bits that don’t suit you?
4. Why is it always 6 months?
5. Are you really just a bitter little nobody with a crappy salary / life or are you going to go with the really successful wonderful life thing?
6. You have gone a bit quiet since some others responded to your last post have you gone away?

Jonnie

• 16 December 2010 12:38 PM

Chris noted, however those in engative equity are only those that bought in the boom years, which is a fraction of the whole market. There are more sellers with plenty of equity who can buy today. That is why agents/conveynacers/lenders are still in business. It is the First Time Buyer still trying to raise finance beyond what they can afford that is the problem area. I and many agents have many sales waiting to agree if only a FTB would appear to kick the chain off.

Renting dead money!

Still haven't seen anyone else post here a prediction for 2011 pricing!

As I said before one of the "factors" is the media and holy smoke today they have latched onto Grant Schnapps (idiot) making comment that prices will fall next year. Will this make a buyer wait now compounding things? and poor old vendor about to loose more equity? and as any experienced agent will tell you, most buyers are sellers.

• 15 December 2010 12:16 PM

Jo Public - who said I am an estate agent?

You won't be able to buy a property for your desired price as owners simply won't sell if the price is not right. It's basic economics that many can't afford to sell in accordance to your fictitious pricing structure.

So the more housing prices drop, the less supply there will be. That then leaves you and your little mates battling it out with each other for a small selection of property, offering £50 more each time.

Of course, your only option then will be to choose from properties where there has been a divorce, a death or a repossession.

Let's be generous to you and say that you pay £700 PCM rent. You're going to wait 6 months. You're down £4200 already. You'll wait another 6 months, then you're £8400 down, boom. This time next year you're landlord will be collecting his Copas turkey for Xmas and buying a new car. All compliments of you.

Many think you're a short sighted, clueless, penny pinching fool. But not me, I think you're a nice guy. You're takng very good care of your landlord.

• 15 December 2010 09:48 AM

"Wooden Top" You are wrong and here's why.
Prices are sticky up and many home owners are in negative equity so cannot sell, because they cannot clear the mortgage with what they are offerd. Last week I met such a couple who are trapped in a small flat and another child on the way. There only option is to rent the flat out and in return, they will rent something bigger until such time that the prices increase to level they are able to sell at and then hopefully achieve slightly more to cover a deposit on their next house purchase. Forced landlords to become forced tenants. Also, buy-to-let sales are increasing as rents rise and property prices are still low!

People will only sell cheap if they can buy cheap also and if they can't, they stay put. Banks have also wised up when it comes to repo's. They do not sell properties cheap anymore because that only drives prices lower, which means next months repo's sell for even less.

Last year, we were selling quite a few pubs and still had a few on our books to sell when they changed strategy. They simply took the remaining pubs off the market and mothballed them until the market recovers! This time round, the industry is working smart to keep prices from falling, yet there are still plenty of buyers around to keep things ticking over and buy-to-let is coming back strongly.

Also, prices don't have to fall to help buyer get onto the ladder, they just need to stay in rented/ with mummy & daddy longer and buy when they are older, that's all. No one has a god given right to be able to buy a home, so they will just have to wait until they can afford it.
As we are all living longer, the population is expanding and less and less properties are being built, demand for housing is increasing. Do the sums, prices will hold up much firmer than people think. Rising inflation will also help as will quantative easing! As the value of the pound falls, the best place to put your money is in commodities. People will always need food & shelter so shelter gets my long term vote!

• 15 December 2010 01:23 AM

"Jo Public", as rents rise, your money is going nicely into the hands of your landlord and is slowly paying off his mortgage.

Put it this way, my tenants have been helping me pay off 10% of my mortgage equity each year on each of my properties!! At this rate, they will all be paid off in only a decade of ownership and I'll be mortgage free on the lot and able to retire before I'm 50-years old. (About another 5-years I hope)Not bad when you consider I bought most of them in 2005, 2006 & 2007 and they are actually worth about 10% less. Who cares though, when they are now on really low mortgage rates and the rent coming in is double the mortgages going out.

Also remember that the value of property only matters when you buy it or sell it! As mine will form part of my pension plan and I don't intend to sell them, it matters not what the paper value is at various times while I own them!

Just keep paying your rent like a good little tenant! The person who is winning here is your landlord!!! ;-)

• 15 December 2010 00:58 AM

Oh come on people, they were saying the same things this time last year! "Market crashing, blah, blah, blah"
Each year around November & December, the market cools as people think about Christmas.

For some reason, there seems to be a lot of relationship break-downs during the festive holidays, people also decide they need a bigger house when the extended family comes to stay etc. and we tend to see greater activity in early January.

Then the market cools again when the really cold weather arrives in Jan & Feb with the market picking up again just after Easter. The traditional cycle continues that's all.

Next year after people realise that the 2.5% VAT hike is not going to kill them, optimism will return and things next year will look rather similar to this year with prices rising slightly in the Spring and falling back slightly in the Autumn!

The boom & bust cycle is also something that needs to happen from time to time. Inefficient companies need to go bust, some people need to lose their jobs and from this, small new companies are born out of necessity and this is part of the evolutionary process.

The anti-estate agent lobby need to wind their necks in. Greedy vendor's set the asking prices, not agents and too many buyers allow them to increase. Agents just do the marketing bit and like all salesmen, will talk the product up a little, but no different to other salesmen in retail, automotive or anything else. Market forces drive prices up & down, not people!

My final point about 3x earnings, which has been mentioned again. This is a rubbish way to calculate mortgage affordability and here’s why. The cost of household goods has fallen to nearly nothing, so people have more disposable income. Think back to how much a TV used to cost? Nearly 2-months wages as it goes. These days a good LCD will cost around £350! People can afford to pay more for their mortgages these days thanks to a global market & cheaper goods!

• 15 December 2010 00:41 AM

Aceofspades/woodentop: keep on turning up with your clip boards and cheap suits guys, I'm sure you look very professional! Maybe on day you guys could get yourselves an iPad then you'd be able to look super sharp.

Life is fine here in my rental, a nuke lump of cash, easily enough to buy the average priced home, ready to go. Is now the right time to go for it, I'm sure you two would be saying "oh yes, now is the right time to buy, the market has bottomed out." I don't think so gentlemen, I shall return in 6 months time to give you boys a squeeze and then we'll see who's got the spoils.

• 14 December 2010 20:30 PM

the truth is prices of homes went up more and more as greed came in and the prices paid bore no relation to average earnings, bank lent out 125% on upto 6 times turn over, thats how un realistic prices got, with banks selling bad debt, the rest is history or will be.

• 14 December 2010 18:23 PM

I have no problem with the invading masses from House price crash coming down here and trying to give us a hard time.

The usual way is that they come down here full of aggression and nastiness, fuelled by the notion that the grown up world will contiue to dole out the food cash and shelter that their parents prodived as they were growing up.
These immature young adults and truly thick older ones come on here to blame us for their own under achievement. Let them keep coming. Eventually the smart ones shut up and go off to work a bit harder and the stupid ones just come back for more.

I have to say that Reck's dad probably regrets his actions all those years ago now. If he had simply saved £1 for the Johnny machine in the pub the world would be a better place today.

• 14 December 2010 15:12 PM

Back to the story line...
There are people who can afford and do buy at this time and there are those that cannot.
What we are talking about is the those that cannot affordto buy can only get onto the ladder if prices come down over the short to mid term. That I beleive they will do, as market forces will make it happen. Those that can buy today are a minority and the market moves based on the majority.
The forces are: vendors, estate agents, solicitors, lenders, suveyors, buyers and probably most important (shouldn't be) the media. You get the picture if I missed someone out. So until they all agree it will continue to be like pulling teeth to get prices down and a return to normal. This year, next year, who knows but we are getting there, a light at the end of the tunnel still along way off for some.
In my area I expect 5% to 10% fall over the next 12 months and will then level out and remain stagnent values for 5 years.
During which time people hopefully will have saved and had pay rise... well wishful thinking but we will recover one day.

• 14 December 2010 14:03 PM

As usual the anti-estate agent brigade have waded into what was a valid debate and turned it into a free for all "have ago" at the estate agents.
Childish and proves the point that the Jo Public and the like are arrogant and so single minded they are probably the vendors from hell which will be no suprise to us in the industry. Clear off and find another forum to "flame".
Come on EAT moderator where are you? Your once good site is going down the pan. Most anti agent remarks are not constructive to the debate, just winge winge winge.

• 14 December 2010 13:47 PM

"Chuck on Monday 13th December 2010 17:51:45

To answer your question, people will try to rush out and buy a home to live in and/or as a
speculative purchase."

Chuck, you are absolutely right. I couldn't agree more. One small, minor detail you miss is that there will be no bloody properties to buy. Who will sell their house for a 50% reduction? How can people afford to do that?

You obviously can't afford a dream house that you truly deserve, you'll have to settle for something less. That'll mean continuing to rent and pay someone else's mortgages (thanks) or live with your rents.

Jo Public - they say you can learn alot about someone by looking who they're friends with.

So, you are FRIENDS with TWO hooky agents and you slander all estate agents in saying they are the same.

You've sold 5 houses in 15 years and never come across a good agent. So why the hell do you continue to use them? You can sell and buy privately with ease.

You complete and utter 24 carat plonker.

• 14 December 2010 13:29 PM

Thank you for the good wishes.

You can throw as much anger at me as you like, it won't undo 25 years of prudent, smart living.

I have worked harder and smarter than most people. I have put up with corporate cocks and sneaky, greed ridden proprietors and because I took the trouble to learn whats what, I now have earned a fortune which can never be taken away.

I feel sorry for folk like you, I don't pity your lack of money, that is always easily fixed with a bit of hard work. I am saddened that you feel resentment towards someone who earns more money than you because they work harder than you.

• 14 December 2010 12:21 PM

Reck B Your old man was clearly very short sighted, the first lesson anyone learns in business is if you have a good year keep someback for the taxman, I know of another agent the same is about to happen to, I would not wish it on anyone but cannot help to think that buying an £80,000 sportscar (just been repossessed)was naive especially as they owed the taxman money

• 14 December 2010 12:07 PM

My old man was a chartered surveyor/EA/Auctioneer/Senior partner etc in the early 90's. he earned £120k the year before the crash and then not enough to pay his tax bill the year after. let's hope the same fate befalls you. I hope you're on good terms with your son, you might need to tap him up for a payday advance type loan, you donut.

• 14 December 2010 11:48 AM

Unarguable, solid fact."

Probably but so what.
I am getting bored of the fact that so many people have not grasped the fact that it is their own personal circumstance, not national averages that determine affordability.

This is the umteenth time we have had the same discussion. The average house is about 1x my annual disposable income (after tax) the very same average property is 13x my son's gross wage.

There s a big difference between the two of us

The only thing that can be said about the current falls is that there is an increased number of vendors who have to sell or who can afford to accept a lower achieved figure.
The prices have dropped on about 1% of the stock which has sold, 99% of the entire housing stock will remain totally unaffected until a sale is required.

• 14 December 2010 11:26 AM

PS. The Nationwide Houseprice index is adjusted for inflation, so this doubling in price is a doubling in real terms.

• 14 December 2010 10:45 AM

You don't need to go back that far :

Houseprice/Earnings ratio in 1997 = 3.0

Houseprice/Earnings ratio in 2010 = 6.4

So houses are now twice as expensive as they were 13 years ago.

This is based on figures from the Nationwide houseprice index and National Statistics Annual Survey of Hours and Earnings.

Unarguable, solid fact.

• 14 December 2010 10:35 AM

lol, thank you for that Miles.Do you think at some point you may like to comment on a subject internet related?

• 14 December 2010 09:34 AM

The banking industry is fast becoming very detached from the real economy, Bankers helped themselves to £7 billion in bonuses this year whilst every este agent, shop retailer, insurance broker, recruitment agent etc. is feeling the squeeze, the banks will continue to purge the public whilst confident we will continue bailing them out by printing money as they already own what we perceive to be our assets, they have no morale code, just to suck as much money out of the economy as possible, eventualy of course there will be no real money left, indeed that is now the case, just wait for the rapid inflation and the banks will eventually eat themselves.

• 14 December 2010 09:23 AM

Gosh, it appears us estate agents are not overly popular with the general public, immoral and crooks. I think its been said many times on this site - but just to remind those people (normally those with poorly paid jobs who simply cannot afford a house; I do actually feel for you but we cannot be blamed)We trade in a market where the general public can enter if they wish, they can chose the property, the finance and the estate agent. As in all industries there is the odd bad egg, I have been practising for over 20yrs but can not recall a single case i have had experience of where i think an agent has been immoral or indeed a crook. Anyhow, I'm off to dig my Ferrari out of the snow.I got it as a gift from our local bank managers for playing my part in the housing crash

• 14 December 2010 09:10 AM

New Ferraries do not have a speculative component built into the price, houses do, thats why you pay far more in London than in far north Scotland. This is the variable. For the last 30 years people have chased the speculative price rises and we have run out of new entrants to the game. We may now start to price houses in line with wages and real affordabillity and not buy them on account of 'prices going up'. As for investment, a 5% gross return is far too low for the trouble and risk, and on that basis alone prices need to come down far more than they have. 3x a single wage may well be a psychological target for many and I agree. We do want our kids to aford housing, dont we? (ps, we dont have kids but are aware of the current anommaly re FTBuyers)

• 13 December 2010 23:54 PM

Aceofspades - Yes immoral, to deceive someone in my opinion is immoral. In this country most people and professions enjoy the basic understanding that someone is innocent until proven guilty, however this is not the case with estate agents, unfortunately most can see no further than doing absolutely anything to achieve an instruction or a sale. Two good friends of mine are estate agents and will quite openly admit that they have no problem tucking someone up, all they care about is the commission.

I think that is acting without morals. I've sold 5 houses in the last 15 years, I'm yet to find a decent estate agent who I would honestly say isn't a crook.

• 13 December 2010 22:01 PM

To say the banks are trying to engineer a crash is complete nonsense. They have far more to lose than gain.

• 13 December 2010 18:54 PM

Will Rightmove be therefore assisting their Loyal agents offering discounts in their montly charges????

• 13 December 2010 17:55 PM

@aceofspades 13th December 2010 17:33:41

To answer your question, people will try to rush out and buy a home to live in and/or as a speculative purchase.

Now, on the other hand, you asked for people to think about what happens. What do you think would happen if house prices stayed the same or increased? Please take into account population demographics (ageing) & pension liabilities, birth rates (couples delaying kids and IVF availability), economic growth (busted banks hiding losses on property & reduced lending), social cohesion (there are students protesting; tube, fire, post office strikes, etc). I can suggest it doesn't look good, but you can come to your own conclusion.

• 13 December 2010 17:51 PM

Obi,

Anyone can pull out facts and figures from god knows where. The fact is all of these sources read differently.

Why SHOULD house prices be 3 times the average salary?

Should we price everything in accordance with average salary? gas, electricity, food, petrol, cars, clothes, SKY TV?

Doesn't sound like the western World morals to me.

If you can't afford something, you can't buy it.

IF magically, prices did drop 50%, what do YOU think would happen to the market? Take a step back and think about that (for a second at least).

• 13 December 2010 17:33 PM

Calm down FFS!

• 13 December 2010 17:26 PM

Yorkshire Agent
"The banks are lending cautiously but it is a free market and they are beginning to see that they are starting again to make decent money out of mortgages which will encourage further lending. "

The banks are lending cautiously. As for the rest of this statement, well it's the usual bull**** I would expect from an agent.

Where is the evidence that things are getting better for anyone? Who exactly stands to gain from this low demand, low supply, low available finance, low level of transactions?

• 13 December 2010 17:22 PM

err joint income £50k x 3 for example = £150K plus £7500 deposit (5%) = today £157,500 purchase price and that's near enough to 3% price drop. Now who's clearly flawed?

• 13 December 2010 17:21 PM

James... Nail. Hammer. Head.

Ferrari's should be no more than the average annual salary - I want one and it is my god given right to have!

• 13 December 2010 17:18 PM

James@16:15 "Three times the average wage should not equate to the average house price

Even fifteen years ago people were borrowing three times joint salary

You have to go back a long way to get to the days of 3x the main wage earner, or one week's wage in four as a payment calculator, I think it was before computers and even colour telly "


1995
Average wage £22,257
Average home £51,245

=2.3x

• 13 December 2010 17:13 PM

Many agents are happy with unsaleable homes on their book for the sake of having more boards on display.

• 13 December 2010 16:59 PM

Three times the average wage should not equate to the average house price

Even fifteen years ago people were borrowing three times joint salary

You have to go back a long way to get to the days of 3x the main wage earner, or one week's wage in four as a payment calculator, I think it was before computers and even colour telly

• 13 December 2010 16:15 PM

Except the CML average wage data is taken from those who have a mortgage. That's like Ferrari deciding the average salary is based upon the income of those who can afford to buy their cars. Clearly flawed.

The Office of National Statistics just a couple of weeks ago said the average wage in the UK is stagnating in the region of 25K. Given average house prices of at least 160K (Land Reg, Halifax and Nationwide figures) and the decline of self-certification mortgages, then the coming falls in house prices would appear to be greater than 5 to 10%.

Banks are not being stingy with their lending! They got their fingers burnt with lending over 3.5 times average salary and are now looking to return to that historical level.

• 13 December 2010 15:25 PM

Jo public- Immoral practices? Hhhmmm. You know, you can choose which agents you deal with. That is your decision. Honestly, the majority are decent, but like ANY industry there are some crooked ones too, I'm not going to lie.

If all agents were THAT bad, along with the massive rise in private sales sites, why do so many 'outsiders' continue to research (and remain interested) in using agents and insist on posting on this site to have a moan?

If agents are THAT bad, choose and use a good one, or completely take them out of the equation and buy/sell privately.

Or do you just want the complete services of a dedicated agent, without paying any commission and getting a 50% reduction of the property?

Not going to happen.

teplio.co.uk - I advise you pursue your future home searches there and other similar sites...

Still won't be cheap enough on there either for you, I'm afraid.

• 13 December 2010 15:23 PM

Oh dear all getting very personal and clearly a little bit of knowledge is dangerous for some.

Fact 90 and 95% mortgages are about today although restricted to status more then ever before. Based on an average salary (using CML average wage) resale equity/deposit = 5% to 10% further price reduction. From what we see people have in their pocket that sounds about right. No crystal ball but I do understand business economics and have been a very successful EA for decades. If you don't agree fine, lets hear your prediction and see who's right, rather than slagg someone off, thank you and good day.

• 13 December 2010 14:58 PM

I think you've made some very valid points Jennifer, as for you Yorkshire agent, you can carry on living in fantasy land for as long as you like, the landscape of estate agency is and has to change, banks hold the aces, not estate agents. Change your immoral practices or you are dentined for the job centre !

• 13 December 2010 14:36 PM

the yorksire agent.

well said. i agree with your response to Jennifer. Also, consider that if us independant agents are valuing properties correctly, to sell, and the educated buyers are buying them, then where are the 25% down valuations coming from? I haven't seen any!

it tends to be those corporate agents hung up on listing targets, that are overpricing proprties.

• 13 December 2010 14:33 PM

Jennifer - with the greatest respect, to put it bluntly you are talking complete and utter sh***e, are you firstly suggesting that the banks operate a cartel? and that they then tell the surveyors (who are mostly independent) to down value by 25%????
The banks are lending cautiously but it is a free market and they are beginning to see that they are starting again to make decent money out of mortgages which will encourage further lending. You are right 95% mortgages may remain rare, but 90% mortgages are getting easier to access for people.

• 13 December 2010 13:13 PM

You think that mortgage lending will return to 95% mortgages in 2012 - you REALLY have no idea about Economics do you? The UK banks are bust and the level of debt that UK banks have now is crippling them. They will not be returning to vast mortgage levels again for a decade. Can you not see that what the banks are doing is engineering a crash by refusing to lend and getting their surveys to take 25%, 30% off asking prices when they do a valuation. Have you not worked this out yet? Are you so much in denial that you refuse to see what is happening!!!?

• 13 December 2010 12:59 PM

......Is it that sellers don't want to sell for what they can actually achieve......?

Of course, but it is not that they don't want to sell, it is because many cannot afford to sell at a lower price so advise them to stay put for a while.
If agents REFUSED to market properties where asking prices were much too high there would be a reduction of properties on the market and the law of supply & demand could kick in. You agents that only keep on about your income should widen your thinking horizons to include overheads. I refer to the downturns of the last 25/30 years, when many agents went out of business. You have to service all those overpriced properties for nothing, it takes staff time and money for no return so start viciously cutting your clothes according to the cloth - difficult, but you may then survive. Let the others spend their money on an unsaleble product.

• 13 December 2010 12:46 PM

Both are excellent points

Of course we are here to get the best price for the client too

If, however, we offer properties at totally unachievable prices just to please the client or win the instruction, then we are essentially immoral, and are not providing a service of any description from the start

Asking prices can come down further, and I think sales prices are already near the bottom, but there is a big gap between the two.

Is it that sellers don't want to sell for what they can actually achieve......?

• 13 December 2010 12:02 PM

The market is still adjusting to tight lending conditions which have been treated as temporary till now. If perception shifts and people come to accept these are permanent, that could be the moment when prices start to fall more drastically.

Personally I believe we won't see decent transaction volumes until prices drop back to long-term trend lines so I think we are talking 25% or more in some areas.

It's the high prices themselves that are contributing to banks nervousness in lending - let's face it why would they want to lend on assets set for a big fall?

Personally I'd rather sell 20 houses at 25% off than 5 houses at full asking wouldn't you?

• 13 December 2010 11:40 AM

5% is about right but just like the peak in a boom which under normal circumstances would then fall back slightly, I'm expecting it to drop now by 10% before the market wakes up to it having hit bottom with a slight recovery with 95% mortage lending returning to normal in 2012. Simple maths but the market didn't want to hear, like pulling teeth to get to where we are eventually arriving at. There was no simple answer to the debacle in a free market.

• 13 December 2010 10:50 AM

Well of course this is no surprise

I remember EAT running a story (I think at the end of September) saying that the stupid ones amongst us had contributed to the largest monthly asking price rise in recent years.

There had to be a correction just for that period alone.

Old stock is reducing and new stock is increasing - agents are winning business by flattering clients, but these over-priced houses are contibuting to a stalling the market.

Buyers have access to so much data nowadays, there really is no pulling the wool over their eyes, regrettably sellers do not research their own price often enough and are usually tempted by the highest valuation - this will probably never change.

• 13 December 2010 09:50 AM