Friday, Oct 12, 2007
It's all downhill from here ....
Home.co.uk: House prices fall further
Prices of homes on the market in England and Wales have fallen for a second month by 0.6%. Asking Prices for homes in England and Wales have risen 5.9% year-on-year
& 2.0% over the last 6months. Greater London Asking Prices fall again, 0.5% in a month. Asking prices in Wales fall 3.0% in one month. Prices fall again in 6 of the 9 regions in England and Wales.
Posted by uncle chris @ 08:11 AM (946 views) Add Comment
9 Comments
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1. inbreda said...
"Asking Prices for homes in England and Wales have risen 5.9% year-on-year "
so for a whole year now the housing market hasn't stacked up against a good savings account.
And that's asking prices!!
2. planning4acrash said...
It would have done had yields been positive. Prices must go down!
3. Axxo said...
Most articles about buy to let are not taking into consideration the true cost of ownership! All they ever say is how much money they are making from increases in house prices, but they have to pay the interest lost on the 15% deposit, making up the difference between the low rent and higher mortgage interest only cost ( in London for the last 2 years) the cost of insurance, mortgage arrangement fees, survey costs, no rent when tenants vacate and you have to find another, letting agent costs, redecoration costs, then the re-sale costs and ultimately the 40% tax your hit with when you sell!! Take all this into consideration and your not left with very much, even with 10-15% growth in London......So you think why bother, just stick the 15% deposit in a high interest bank account
4. Paranoia Blue said...
Quote from the article:
“Asking prices in Scotland have continued to rise, seemingly unaffected by the rapid cooling of the housing market south of the border. Over the last twelve months Scotland has registered the largest rise in asking prices for any region in the UK, increasing by 30 index points or 23.2%. Scottish housing market sentiment has been the most bullish in mainland UK over recent years, but as the pain of higher interest rates is felt, by homeowners and buyers alike, it seems likely that this market will lose much of its current momentum over coming months."
However, see the following link, entitled:
NORTH-EAST PROPERTY PRICE BOOM IS OVER, WARNS EXPERT
The warning comes on the back of new figures issued yesterday showing the average house price in Aberdeen has suffered its biggest drop in two years.
http://www.pressandjournal.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=232919&home=yes&more_nodeId1=149221&contentPK=18653157
It included the following quote:
"Figures from the Aberdeen Solicitors Property Centre (ASPC) suggest that there has been a 2% drop in the average Aberdeen house price in the third quarter of 2007……Aberdeen University sociologist John Bone suggests the situation may be far worse than property agents are letting on. He has spent two years studying UK housing trends as part of a sociological study, and feels the big increase in fixed-price properties on the market suggests the property boom in the north-east is over."
5. doomwatch said...
I see their reports now only contain tables of YoY figures, rather than the bullish MoM onces
from a few months ago. It only takes a look at the charts though to reveal the drops.
6. dugmug said...
Read the "Comment" section on page 7; some would say incredibly bearish, most of us would say they have it spot on - hope these comments get into the media:
"All these factors have created a braking effect on UK house prices but the precise tipping point was precipitated by a radical rethink in underlying attitudes to the risks posed to mortgage lenders in an over-valued property market."
"The fundamental factor for a buoyant housing market is a steady supply of credit for buyers. The recent reawakening of mortgage lenders to real risk means that mortgage approvals will be both fewer and incur higher rates of interest. If the UK economy were to remain robust then a small market correction or soft landing could be expected to relieve affordability pressures. However, HM Government has already revised down GDP growth for the next year and job losses are certain in financial services, construction and manufacturing sectors. A cut in interest rates by the Bank of England may be tempting, but that would weaken Sterling and serve to fuel import-led inflation. In short, below the cloud cover of uncertainty there could lay a very hard landing for UK house prices." [my emphasis]
7. Wyldman100 said...
"Asking prices in Scotland have continued to rise" - This is probably being skewed by the 42.1% quarterly rise in property prices in Orkney, average price £128,000 (source BBC). Probably just a case of the weakest markets moving last.
8. su said...
@PB
Scotland's figures may be complicated by the dual system of Fixed Price and Offers Over. Over the last few weeks I've seen many properties go from an Offers Over price (which used to mean the seller expected at least 20% over that price in this particular area) to a Fixed Price which is higher than the O/O price but less than 20%. In real terms the sellers are reducing their prices but the actual asking price figures are raised.
Just this week, out of the 30-ish houses I've been following in a commuter area for Edinburgh, 2 have reduced their Fixed Prices by £5K each which is a two and a half percent drop.
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