London Home Sellers Increase October Prices

[Realistbear]

http://www.bloomberg.com/news/2010-10-17/london-home-sellers-raise-prices-by-5-as-housing-weathers-budget-squeeze.html

London Home Sellers Increase October Prices, Defy Fiscal Gloom

By Svenja O’Donnell - Oct 18, 2010 10:07 AM GMT+0100 Tweet

Rightmove said the weekly rate of new properties on the market rose 11 percent in October from a year earlier.

London home sellers raised asking prices by the most in six months in October as owners across the U.K. brushed off the challenges posed by the biggest fiscal squeeze since World War II, Rightmove Plc said.

Average asking prices in the capital increased 5 percent from September to 418,778 pounds ($671,301), the most since February, the operator of Britain’s biggest property website said in a report published in London today. Across the U.K., prices rose 3.1 percent to 236,849 pounds.

The report contrasts with data from Halifax on Oct. 6 showing U.K. house prices plunged in September by the most since at least 1983. While Ernst & Young LLP’s Item Club predicted today that the housing market “clearly looks” as if it is heading for a double dip, Bank of England policy maker Andrew Sentance said last week that price declines were a sign of “volatility” rather than a renewed property slump.

“It’s seemingly illogical against all the poor market fundamentals that new sellers coming to the market after the summer break should actually put their prices up,” Miles Shipside, commercial director of Rightmove, said in a Bloomberg Television interview today. “It shows that despite the economic difficulties we’re going through, they’re finding it hard to adjust to the new market and the different fundamentals.”

Recovery Fading

Oliver asked for more and we all know where that ended. More? MORE? :angry: :angry:

[Chicken]

Another case of taking one positive point and completely twisting the conclusions of the report.

Actually read the report here and you'll see that the author is actually rather bearish.

[Realistbear]

Another case of taking one positive point and completely twisting the conclusions of the report.

Actually read the report here and you'll see that the author is actually rather bearish.

I don't doubt that at all. But its the sellers who are bullish and that is why they think they can put their prices up in the face of disaster. The Old Churchillian spirit and all that--we shall nevah give in to lower prices, we shall gazump the buyers in the streets, we shall raise our prices in the avenues, we shall not reduce our prices no matter how fierce the lack of competiton becomes.....

Edited October 18, 2010 by Realistbear

[Chicken]

It's on the front page of the report

· Why would new sellers test the market at asking prices 3.1% higher than a month ago?

- Bullish pricing is a normal characteristic of the autumn selling season with average asking prices

increasing in every October for the past decade

- Vendors struggle to react to the increasing stock as most are unwilling or unable to adjust to

new market conditions

- Post-Home Information Packs, speculative sellers can now test the market at minimal cost

Later on in the report:

Shipside adds: “Buyers and sellers are staring each other out, and it’s a question of who will blink

first. Even if they wanted to, buyers cannot blink unless lenders release more funds for mortgages.

As that’s not going to happen, there are likely to be some blinking sellers this winter!”

[South Lorne]

It's on the front page of the report

Later on in the report:

Shipside adds: “Buyers and sellers are staring each other out, and it’s a question of who will blink

first. Even if they wanted to, buyers cannot blink unless lenders release more funds for mortgages.

As that’s not going to happen, there are likely to be some blinking sellers this winter!”

...if buyers are from overseas who checks for money laundering in desperate times ...and when all the middle men are desperate for their share of the commissions cake ...who is checking the checkers ....the FSA ..?.....don't think so....so who is checking the checkers who are checking the checkers.....oh nobody...?....then etc...etc... etc...etc...ahhh ..nobody.....

[Fairies Wear Boots]

The Duke of Hazard checks London prices around our area of London. He's been seeing some nice reductions on good properties. There's still some on the market that I have seen that still look better than 2007 prices. There's also quite a bit of 'aspirational' pricing going on too though.

[winkie]

...if buyers are from overseas who checks for money laundering in desperate times ...and when all the middle men are desperate for their share of the commissions cake ...who is checking the checkers ....the FSA ..?.....don't think so....so who is checking the checkers who are checking the checkers.....oh nobody...?....then etc...etc... etc...etc...ahhh ..nobody.....

I concur, it is only the rich overseas buyers keeping the market afloat...real Londoners are well and truly priced out, there only choice is to move away...a FTB wouldn't want to live in an area they could barely afford with a big deposit and they would definitely would not want to bring any kids up there.....London is dead and dying for all but the few who can live there rent free or rent paid for.