Monday, Mar 19, 2007
Spring 'dead cat' bounce?
Firstrung: House prices gaining from early spring market - Rightmove
Average Property Asking Price £228,183, % Change in Month +1.5%, % Change in Past Year +12.2%, Monthly Index (Jan 2002=100) 185.7 Average national asking prices rise by 1.5% (£3,381) in the month as spring activity kicks in. With prices now rising at over 12% per year, first-time buyers face ever increasing difficulties getting onto the housing ladder.
Posted by converted lurker @ 10:37 AM (507 views) Add Comment
13 Comments
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1. inbreda said...
"Average asking prices for UK houses rose by 1.5% (£3,381) last month accrding to Rightmove as the spring market strengthened and shrugged off fears of another interest rate rise."
So, to interpret, a VI is saying things are OK by quoting asking prices. It doesn't mean that house prices are rising, it means sellers are ever more greedy. It makes no mention of selling price, time on the market, number of asking prices reduced or any other fact that might make their spin more meaningful.
2. Davros said...
There's been a surge of properties up for sale in my street that came on in the first couple of month of this year. The asking prices are far higher than last year and only one of them has a 'sale agreed' on them. There's a world of difference between asking prices and selling prices.
3. uncle chris said...
Now hang on - a couple of days back the National Association of Estate Agents (NAEA) were quoting £4,500 drop in the average asking prices. If VIs have any chance of convincing sheeple that there is nothing wrong with the housing market then they had better get their story straight.
4. pedagog said...
"It means sellers are ever more greedy"
No it doesn't. It means EAs are ever increasing their valuations based on the 'heat' of the market.
One week ago I put my house up for sale. 2 EAs valued it at 240k one valued it at 230k. We put it on at 229k which I still think is vastly overpriced (we bought it for 145k in 2004). The EA we are on with is so confident of selling they agreed to a 6 week contract.
This has nothing to do with the 'greed' of sellers. Sellers take advice from EAs. EAs won't market a property that they can't sell. Sellers need to get top buck as they are having to buy at top buck.
Like many on here I'm hoping for a drop on the market and believe it will come in the next two years. What really irritates me is the casual bandying around of emotionally loaded terms such as 'greedy'. I wouldn't call those hoping for a crash greedy. It is simply inappropriate language.
5. C'mon Correction said...
Another fall in prices for here in Wales. YOY is 5.4% which I think is dubious, I'm expecting YOY to fall negative within a few months on most of the market reports here. Looks like same story in the North. It seems it's just Greater London and SE that is performing, and that is probably reported on skewed data.
Friends of mine who bought 5 months ago found out they bought their house 15% cheaper than it was just 3 years earlier. And the interest rate rises haven't kicked in yet and we've more price falls on the way! Good news, in a couple of years I will be able to buy at an affordable price again, at last !
6. paul said...
Okay, let's not use the word "greedy".
"Optimistic" is much better.
7. Davros said...
Actually, I'm talking rubbish.
I've just found out all but one of the houses in my street have sold. The one that's left has had the price put up by £50K. I'm astounded, there seems to be some sort of buying frenzy. Who, how and what their reasoning can be for buying now is beyond me, but obviously people still are?
8. pedagog said...
"Optimistic"
That I do like!
:o)
Whereas on here we are all pessimists? Or realists?
9. denzil said...
Did quite a lot of driving over the weekend between Somerset, North Somerset & South Bristol and the noticeable thing is the sheer volume of "Sale Agreed and Sold" boards. It is absolutely staggering. UP until very recently the strong sales did not be seeming to generate HPI but I have noticed a couple of places come onto back onto the market. One of these places I viewed, initially it was £495K, it was dropped to £465 I offered £420K. It went off the market very late Autumn and has just come back on at £525K. Granted it is not yet sold but it has only been on the market a week. I am using this and some others as my barometer property into the state of the market.
What I really don't understand about the South West (Somerset) market and tyrell may back this up is that when the rest of the country were talking about a bouyant market my area was dead, now reports are getting bearish and there are reports of a slowdown my area is booming.
10. Rayman740 said...
We have been looking at houses near Exeter. One was offer-accepted before we even had chance to see it (although it is still on rightmmove). We put in an offer 50k below asking price (about 10%) and it was accepted. We are now in the middle of the deal but .... sticky bums time. In some ways although we love the house i don't really want to spend the cash (not big mortgage) but i have a feeling interests will not go up and this means the demand for housing is still there.
11. David20040_0 said...
Yet again house prices are rising at £100 a day, but you hus seem to think a crash is around the corner. I somehow doubt it, prices are rising so strongly a crash is far away.
12. David20040_0 said...
Yes Davros, just accept that prices are and have been rising by £100 a day, they have and will do for a long period of time to come.
13. Davros said...
Er, cos they are now, doesn't mean they will continue to do. The two don't automatically follow, no matter what you think.