Wednesday, Oct 24, 2007
My God... it is FAAALLING!!!
MortgageSolutions: Average UK house prices fall
"The average price of a new home in the UK in September was £257,036, down 0.9% in the last month. Prices fell by 1.2% over the last three months but were still up by 0.5% on September 2006." I have no idea what statistics is that, but I found it funny that house prices (probably just new homes) have gone up just 0.5% in 12 months. Far less than the price of milk!
Posted by confused76 @ 06:33 PM (1349 views) Add Comment
20 Comments
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1. Disillusioned said...
This thread shows some even better stats from this index:
Month on month change for penthouses though will be true bear food - a 10.5% drop!
All the regional London stats are bear food too - a 15.3% YoY drop!
2. Cheekie Charlie said...
I've noticed some houses in my neighbourhood selling for upto 20% reduction of what they achieved at their peak. This is obviously people who want to sell quickly! As for the houses which developers are selling for top prices with their shiny pebbles and rose pettles scattered on the fireplace and everything that doesn't move painted in magnolia, these prices are now beginning to look very stupid - no - EMBARRASING!
3. alan said...
Time to sell houses, but don't buy into the Chinese market - another bubble is developing there!
Gold is going up....HOLD. But there are a lot of people in Gold, it's a bit late to buy in now. If you must go into precious metals, Silver looks good.
4. new_order said...
Silver, copper, medical supplies, ammunition, drugs; they are all practically recession proof.
On a more serious note, I have heard that ink is worth more than gold considering how much you get for how much you paid for it. Does anyone have an opinion on this?
5. sirgoogle said...
0.9% in a month. That is nothing.
The US house prices apparently dropped 8% in the last mionth - the fastest fall since 1929
6. Mr_sensible said...
sir google,
' ... 0.9% in a month. That is nothing ..'
No it isn't, that's quite a big drop for a single month -- it would extrapolate to a drop of more than 35% over the next 4 years.
' ... US house prices apparently dropped 8% in the last mionth ...'
No they didn't, 8% was sales volume (i.e. an 8% drop in number of houses sold), not price.
7. david20040_0 said...
But the US has more land.
8. confused76 said...
OK David
we would be happy with just half the price drop of the US :))
9. Bigyin said...
David20040_0 I'll ask the question again. Why do you bother visiting this site? You never bring anything constructive. Why not just go away and buy a house?
10. enuii said...
Ah, so that explains why the number of properties for sale within 1/2 mile radius of my humble abode has shot up from 84 to 109 on rightmove since last friday.
Do I sense a rush for the exits just after the market peak?
11. Rimmer said...
David
Yes the US has far more land but there again for £200000 on average in the US you get a 3500 square foot home with 4 bedrooms 2 1/2 baths and 1/4 acre plot, what do you get in the UK a 2 bed second floor masonett.
Its all about perceived value for money and affordability at the end of the day.
12. planning4acrash said...
David, you know we've told you this before, its not about land, its about how much cash is available to those who want to buy it. The VI nonsense about property always going up is gobbled up, so mortgage brokers will sell whatever banks will lend, period. Credit is now short, so prices must go down, you will see it for yourself, enjoy!!
13. Andyh said...
I have no idea why you folk humour this character David. He is so obviously a VI plant. Just ignore his twaddle and he'll disappear.
14. paul said...
8% fall in a month is insane.
If that happened in the UK, it would be a month-on-month loss of GBP20k on the average house!
As it is of course, a 0.9% drop in house prices in a month is GBP2.4k which is more than most people earn in a month!!!!
15. paul said...
David, Japan has still not recovered from a property boom which ended in 1990 - and Japan has about 10% of the habitable land and a lot more people (130m) than the UK.
Even more worrying, if Japanese history is anything to go by, it appears that Northern Rock may be the first of a number of "zombie banks" that will emerge, as the government cannot allow them to go bust.
16. Freewheelin Franklin said...
Sorry guys you're wrong about US housing; SALES dropped 8% last month, not prices. Housing prices are sticky. Buyers disappear first, then sellers sit on their properties and only drop the price if they urgently need to fall. House prices will drop further with repossessions and a recession that results in rising unemployment. The weak dollar though is boosting US exports foir the time being - it may take the edge of any fall in job numbers
17. Srmckinlay said...
As these are figures for new homes are the usual 'incentives' included? I suspect not - so that from that average purchase price one can subtract the 5% deposit paid or 12 months motgage payments etc, etc. The figures would begin to look a little more scary (or encouraging!) if this was taken into account...
18. Mikep said...
I'll set the record straight - US house SALES fell 8% last month. National price falls were 4.2%, but that is over a year.
http://news.bbc.co.uk/1/hi/business/7060346.stm
19. mrmickey said...
Paul I think "zombie bank" is an excellent description of what Northern Rock has become, problem with the UK were in danger of becoming a "zombie economy" as unlike Japan we don't actually make anything of any value anymore.
20. Nelson said...
It wasnt 8% in a month in the States - it was 8% reduction in sales year on year - there was a 4% reduction in sale price year on year.