Tuesday, Aug 21, 2007
Rightmove reports modest increase in house prices for August
Rightmove: House Price Index Report
"This month’s rise of 0.6% is the fourth time sellers have pitched their prices at less
than 1% above the previous month, a pattern not seen since January 2006. Should this
trend continue, it would be consistent with the annual rate of house price inflation becoming
more closely aligned with annual wage inflation, currently running at around 3% to 4%."
Posted by tttonyyy @ 01:56 PM (848 views) Add Comment
18 Comments
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1. Su said...
I'm beginning to think all these reports are a bit of a con. One 4 bed detached on Rightmove (Scotland) was Offers Over £169,000 last week (o/o means they hope for 20% above that). This week the same house is now marketed by Rightmove as Fixed Price £185,000. I guess Rightmove calculates that as an increase in asking price!?! And don't even start getting into why they raised the price when it obviously wasn't selling at o/o£169,000!?!
2. david20040_0 said...
If they go up you think it is a con, if it goes down it is a new dawn.
3. Su said...
@david2004. 20% above £169,000 is over £200,000. If the seller put his property on the market at o/o169,000 then he would be hoping for over £200,000 - according to EAs. By marking his property as FP185,000 it could be argued that he is actually lowering his expected price (although IMO I think 20% above asking price is a bit optimistic) But despite this, Rightmove's figures would suggest the asking price has been raised.
My reason for doubting whether his new price will encourage a sale is that his neighbour's house has been on the market for FP£188,000 and still is unsold. Bearing in mind there are several 4-bed newbuilds in the area, around the same price, which are still unsold.(Thinking) The new price, being fixed lower than his neighbour's, could, I suppose, encourage a buyer his way.
4. Captain Sensible said...
Don't know where the prices are rising if these stats are true, but in my part of the country prices are stagnant (some properties have been in agents' windows unsold for weeks, even months) or going down. I guess if those in the property business try too hard to convince us that what we are seeing on the ground is not the reality then they'll lose all credibility and nothing they say will be believed. Maybe that will be a good thing!
5. enuii said...
A brief examination of the guide price of houses at auction that fail to sell will reveal that they are generally put on the open market afterwards at guide price plus 10% in otherwords exactly the same increase that Su has seen.
Oh, Dave its not a new dawn or a con it's standard practice.
6. Su said...
Sorry if previous comments seemed a bit garbled. I'll try again.
Mr Seller puts his house up for sale at o/o £169K. EA assures him he'll get 20% more than asking price. (over £200K)
House doesn't sell.
(with guidance from EA?) Mr Seller re-prices house on market for FP £185K.
Rightmove claims asking price has gone UP (from £169K to £185K) BUT Mr Seller's expected price has actually gone DOWN (from over £200K to £185K)
Conclusion: Its price drop disguised as a price rise! The figures are a con!
I doubt this is an isolated incident as it is common practice in Scotland to change prices from o/o to FP if the property is not selling quickly enough. There has been more than a doubling of fixed prices in the price range/type of property/area I'm currently interested in. And as I've explained FPs mean higher asking prices for the likes of Rightmove.
7. Scott said...
I am currently in Harrow but looking to move to Birmingham. In both places, I have seen properties that were listed as "offers in the region of XXX,000" still listed 6 months later. What was wrong with all those keen offers then?
Classic trick "Buy now before stocks run out!" If stocks were really running out, they would not spend money advertising the product, would they?
8. planning4acrash said...
Hi Dave, Rightmove will only show drops if they have to and have a vested interest in rising prices, so, that is why it is important to be suspicious and question sources. Plus, falls are more significant than a rise, a 50% fall will eradicate a 100% rise. And, a fall is more significant than it seems also, because any fall beneath the yield on government bonds or bank account yields (5-6% at present) is a bad investment decision because it combines a mediocre return with high risk, whilst a fall in real terms is growth beneath RPI of about 4%. Therefore, 7% growth is not particularly significant and 2% growth is infact a fall in real terms, a mini downward correction in prices. The fall of about 0.1% in London the last month is therefore a fall in about 4.1% in real terms. This is the rationale behind thinking that "If they go up you think it is a con, if it goes down it is a new dawn".
But you would know that anyway, being a paid up agent of estate agents :p
9. david20040_0 said...
Your maths are really obscure planningforacrash
10. planning4acrash said...
Did you take O-levels David? This stuff is hardly esoteric, you even contributed to threads that commented on this kind of stuff, which reinforces my suspicious that you are a VI!!
11. planning4acrash said...
Anyway, I thought you'd given up blogging?!
12. planning4acrash said...
Dave, we get on so badly, that its almost a bit too intimate to be comfortable, maybe we should be done with it and file for a civil partnership?! xx :p
13. Pecker said...
Good god.. I dont like the way those posts are going...
14. paul said...
Hehe. A very modern couple.
15. Koala Bear said...
Planning4acrash, a civil partnership with David sounds like a great idea. You can then help him out with a deposit for that house he firmly believes will only ever go up in price!
16. inbreda said...
"Your maths are really obscure planningforacrash"
David, why don't you justify this? I've looked at P4c maths and it all seems fine and sensible to me. Is there a particular figure that you dispute? Can you PLEASE start putting some actual reasoning into your posts rather than being an Andy Pipkin character.
"wont that one"
17. C'mon Correction said...
Yes, David as usual never backs up anything he says, just states blindly what he might read in a tabloid.
P4c maths are spot on, and I'm a qualified accountant !
18. Alan said...
Back to price rises.
Does anyone know what effect house extensions have on prices? Many of the roads where I live have houses being extended as people put savings into bricks and mortar instead of pension funds. Moving is becoming a costly business.
Newly extended and improved houses must be worth more than the old variety. Do conservatories and extensions account for (say) a tenth of the price rises seen over the last 7 years?
Approximately half of the houses in my road have been extended since 1985.