Is it just me?

[Havital]

Firstly hello everyone I’m new to this forum ?.
Secondly is it just me or have horse prices shot up since lockdown? I can’t help but wonder how people have come up with some prices they are putting their horses up for! (Looking on preloved, pets 4 homes, horsemart etc). I brought my first one 9 years ago mind so prices probably have changed but I just feel people want far too much without offering enough. Luckily I am in no rush and will wait till I find the right one for the right price but I am interested to see what you all think about horse prices these days.. have they gone up?

 

[Gloi]

Just noticing prices dropping a bit again at the bottom end.

 

[muddybay]

Yes they definitely have! I put my dream horse budget in and didn't get much more than my horse now (bear in mind I was looking at at least double the price and I only brought six months ago)! I think it's ridiculous

 

[Wishfilly]

They have shot up, but people were willing to pay those prices- that's how a free market works. Demand increased, supply can't increase as easily, so prices go up!

Some of them are ridiculous, but equally not long ago you had producers and breeders struggling to cover their costs- so to some extent prices needed to go up.

I think prices will fall to an extent (or at least there will be more room to negotiate on price) but I wouldn't expect to see prices fall that much over the next year or so. The only reason prices could fall is if the economic situation gets so bad that you end up with lots of people needing a quick sale- and it hasn't happened yet. That's not to say it won't, but it's not a scenario I would be hoping for!

 

[muddybay]

They have shot up, but people were willing to pay those prices- that's how a free market works. Demand increased, supply can't increase as easily, so prices go up!

Some of them are ridiculous, but equally not long ago you had producers and breeders struggling to cover their costs- so to some extent prices needed to go up.

I think prices will fall to an extent (or at least there will be more room to negotiate on price) but I wouldn't expect to see prices fall that much over the next year or so. The only reason prices could fall is if the economic situation gets so bad that you end up with lots of people needing a quick sale- and it hasn't happened yet. That's not to say it won't, but it's not a scenario I would be hoping for!

I think a few young horses will come up when people brought more than what they bargained for or realise they don't have time when they go back to work!

 

[Wishfilly]

I think a few young horses will come up when people brought more than what they bargained for or realise they don't have time when they go back to work!

I agree- I think there will be lockdown buys that will go up- either when people lack time or because things haven't worked out with the horse. However, I also think a lot of people in this situation will expect to get the money back they spent on the horse- even if they have messed it up and reduced it's value. Initially, they'll be put up for what the horse was bought for, or maybe slightly cheaper, unless the owner is desperate.

Prices went up quite sharply because there was loads of demand and supply couldn't keep up. I think they'll go down a lot more slowly- unless we do hit a point where people's incomes are falling off a cliff and there's a lot of supply but not much demand. Just increasing supply won't necessarily be enough to make prices come back down, because sellers obviously have a vested interest in keeping prices high.

 

[muddybay]

I agree- I think there will be lockdown buys that will go up- either when people lack time or because things haven't worked out with the horse. However, I also think a lot of people in this situation will expect to get the money back they spent on the horse- even if they have messed it up and reduced it's value. Initially, they'll be put up for what the horse was bought for, or maybe slightly cheaper, unless the owner is desperate.

Prices went up quite sharply because there was loads of demand and supply couldn't keep up. I think they'll go down a lot more slowly- unless we do hit a point where people's incomes are falling off a cliff and there's a lot of supply but not much demand. Just increasing supply won't necessarily be enough to make prices come back down, because sellers obviously have a vested interest in keeping prices high.

So true I just hope people won't be stupid enough to buy a ruined 6 year old for 10 grand

 

[Wishfilly]

So true I just hope people won't be stupid enough to buy a ruined 6 year old for 10 grand

You'd hope not! But unless people are desperate to sell, I still think it'll take some sellers a while to accept they are going to "lose money" on their horse.