Friday, Aug 11, 2006
House Prices feeling the Heat
Home.co.uk: House Prices Feel The Heat
After three consecutive months of minor rises, asking prices in England and Wales were knocked back by 0.6%, according to the latest Asking Price Index report from Home.co.uk. Such price cutting behaviour underlines the highly price sensitive nature of the current housing market. Buyer affordability constraints are again creating sufficient downward pressure on prices to force sellers to discount their asking prices.
Posted by tinecu @ 01:50 PM (182 views) Add Comment
6 Comments
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1. markd said...
"Bad news for sellers perhaps, but the changing nature of the market offers a glimmer of hope to aspirant first time buyers."
Well certainly a glimmer but it will need a major fall for prices to acheive a realistic level for FTBs. Overall a very encouraging article-at odds seemingly with others posted recently, but the Land Registry figures discussed below represent actual sales.i.e transactions finalised many weeks or months before the sale takes place, whereas Home are looking at recent asking prices so hopefully this does present us with an accurate picture of what is happening now.
2. sirgoogle said...
Interesting how different this is to other indexes
This is most probably beacuse the index excludes properties above £1m and below £20k. This means that the effect of the boom in expensive larger property in London has been removed.
Give that the sample size is around 500,000 properties - I will start to pay more attention to this index.
3. uncle chris said...
Hold onto your hats, it's going to be a bumpy ride :-)
4. talking rot said...
I like to think a degree of sense is returning to the UK economy and the UK housing market. However, I have watched many leanred people on this site posting to say 2005 would be an interest year - and it wasn't. I hope 2006 is interesting - the start of 30% over 3 years interesting.
5. Rosy said...
As far as I can remember, the Home index includes all asking prices no matter when the property was first listed (apart from those in the top and bottom price brackets). The other indices use recent data only. For instance, Rightmove only uses data from new listings that month, so doesn't record any declines in asking prices that might happen when a property doesn't sell. Obviously at the moment, the longer properties are on the market the more likely the seller is to reduce the asking price. The Home index probably gives a better picture of asking prices across the board whereas Rightmove gives a picture of the early-days optimism of sellers dipping their toes in the water for the first time.
6. inbreda said...
Exactly rosy - the rightmove index is not measuring house prices, it is merely measuring the unrealistic expectations of BTL property developer morons, which as we all now is on a planet far far away.