Local Market > Forum

Unanswered

Active Topics

Forums

Forums > General Discussion > General Discussion

Subject: Local Market

Prev Next

You are not authorized to post a reply.

Author

Messages

patrickr

Concerned Citizen

Posts:70

11/07/2008 8:04 AM	Alert
I just thought I would report what I am hearing on the building grapevine in Manchester Overall mood is puzzled properties are in demand prices are weak but not disaterous but no one can get mortgage finance resonably. this is the one thing no one really forsaw and unsold proprties are accumulating interest etc eating away at margins for discount etc. Buy to let ville (ancoats in particular) is a disaster with banks simply waiting for the property to sell and then recover whatever they can. Howver non buy to let schemes particularily in the suburbs are selling at or near asking prices. (infact a house near us (175k) sold in 5 days and completed in under a month Other areas are holding up as sellers are stubbornly sitting on properties or else just letting them. Volume throught the auctions appear weak The buy to let fans are also on the prowl using equity and in some cases increased cashflow to buy up properties- in particular houses which can be let easily. Future developments All appartment blocks are on hold, Developers are on a survival strategy with everyone agreeing that whilst they were all nervous about building appartments 2 years ago they certainly are not doing any more without a mountain of grant. The new eco standards ,disability access stuff and the spirraling cost of steel and concrete is also frightening them as it adds approx 50k to each home no matter how small meaning first time buyers will be structurally priced out. So the votes of the Manchester construction Jury Confused concerned but still think that we are closer to the bottom than most people think, afterall wewill need new houses and they will have to sell for more than they cost to build. Patrickr

SRRA_11

First Timer

Posts:4

15/07/2008 8:05 AM	Alert
Thanks patrickr My mum is considering 'downsizing' to a smaller two-bed property that is more energy efficient . . . she's earmarked the new development on Maine Road because of its convenient location to all the shops+hospitals+universities+transport links. However, she is concerned that the developer [appears] to be behaving as if its business-as-usual . . . and mum being a sly old cat . . . feels that everything is not above board !? What are the [initial] tell-tale signs of a house builder in trouble ? Can the developer demand the same price for a property now than he did [this time] last year !? I don't want mum paying over the market rate for something that will plummet in value as soon as she moves in. Should she demand a 15-20% discount now !?

patrickr

Concerned Citizen

Posts:70

05/08/2008 5:38 AM	Alert
Sorry Srra I have been away on Holiday. Have heard nothing specificially bad about the developer you are talking about- Indeed they do not seem exposed very much to the dreaded Buy to let's ville of Ancoats etc. They are also a bit shrouded in Mystery with a IOM holding company but I have heard they have been sniffing about looking to buy sites etc of other more cashstrapped developers. They also appear to not be too exposed to Barrett or Wimpeys etc. The properties themselves are a bit odd however- They have "benefited" from Manchesters new disabled access policy- (strange how you never hear of a first time buyers access policy). Essentially the bathrooms are enormous with the space for wheelchair recharging etc. with the rest of the property being downsized to save costs and increase density. If she is really keen on a discount the places worth looking are Ancoats and the Dandara and Green quarter schemes I have heard of someone who bought two small 2 bedroom appartments in ancoats for 160k and has knocked them to gether into a big 3 bedroom appartment. Also some of the older conversions ie early urban splash stuff is very nice. also there may be a second hand market in the chimney pots Scheme in salford. Pughs auction site is also worth considering as it shows whats being acheived and whats selling Cheers patrickR

unclealbert

Activist

Posts:442

05/08/2008 7:39 AM	Alert
pr, you also said on the 27/10/2007, "Prices have only one way to go- I think we should all be doing the repossesion sales as soon as we can afford to because something bought now may be dear in 6 months but boy will it be cheap in 6 years and a steal by 2031 (about when I retire)" Patrickr http://www.pricedout.org.uk/Forum/tabid/56/view/topic/forumid/1/postid/5923/Default.aspx No disrespect but i hope people aren't listening to your 'advice' including yourself.

patrickr

Concerned Citizen

Posts:70

05/08/2008 8:55 AM	Alert
Uncle albert I stick my original assumptions In an proper market (Adam Smith) demand increases would bring in extra supplies and prices would return to equilibrium (ie prices would follow average wages). However the housing market is subject to stalinist control, by banks, goverment, and worst of all Planners (1960's tower blocks,1970's cheap houing, present brownfield - all one common thing - planners) They have all made decisions over the last 50 years which have lead to a market that can no longer react with supply increases and just relies on price as a signal - The interesting sign is really land values of development plots- Inner city plots worthless, suburban plots holding up. I continue to beleive that without a proper change in the supply side that the house prices in the long term will continue to be shoved up higher and higher and that this property recession will prove shallow and shortlived. And i will restate Prices have only one way to go- I think we should all be doing the repossesion sales as soon as we can afford to because something bought now may be dear in 6 months but boy will it be cheap in 6 years and a steal by 2031 (about when I retire)" Patrickr

You are not authorized to post a reply.

Forums > General Discussion > General Discussion > Local Market

ActiveForums 3.6