News

United Kingdom: “Price Cuts Coming to a Neighborhood Near You”

Originally published by Sky News on October 24, 2018 Read the original article.

Back on July 2, 2014, the BBC said:

UK house prices have risen above their peak of 2007, the Nationwide has said, after prices climbed 1% in June and were up 11.8% from a year earlier.

But, by the time Elliott Wave International’s May 2018 European Financial Forecast published, the U.K.’s housing market was facing challenges. Here’s a chart and commentary from that issue of the EFF:

According to UK property consultancy Acadata, average prices in London fell to £593,396 at the start of 2018. Annualized, the 2.6% decline is the fastest pace since the depths of the Great Recession a decade ago. On April 12, the Royal Institution of Chartered Surveyors (RICS) released its own closely watched price gauge of nationwide house prices. The index remains stuck at zero, as price declines in London and the southeast offset gains in the East Midlands, Ireland and Wales. As far as demand goes, new buyer inquiries fell again in March — the 12th consecutive declining month, according to RICS — and London estate agents also reported increasing numbers of unsold homes being withdrawn from the market.

Here’s another early symptom of a real estate slowdown: Appreciation in asking prices has subtly returned to nearly zero.

The outlook conveyed by the chart’s title, “Price Cuts Coming To A Neighborhood Near You,” appears to be playing out.

Here’s an excerpt from an Oct. 24 Sky News article:

More than a third of people selling their homes are cutting the original asking price, according to research.

The average discount is £26,131, property website Zoopla said, adding that 37.9% of homes for sale had been reduced in price in the last six months – up from 32.4% in April.

The biggest percentage decrease was 7.77% in Bradford – or a drop of £10,738 on average.

Mitcham in south London, Newcastle upon Tyne and Doncaster have also seen drops of 7% or more.

In London, the average figure was 6.89% – equating to a drop of £64,661. Almost two fifths of properties in the capital – 39.46% – have had their values revised.

In Kensington and Chelsea, the average reduction is £127,394 – nearly five times the national average of £26,131.

Other locations in the top ten are Bolton, Chesterfield, Blackburn, Liverpool and Blackpool.

You can read the entire article by following the link below:

https://news.sky.com/story/third-of-house-sellers-slashing-price-amid-market-uncertainty-11534331

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