Monday, Jan 21, 2008

Rightmove -0.8% in Dec

Daily Mail: House values plummeting by £120 every day

The asking price of a typical home has plunged more than £11,000 since October, research reveals today.

Prices are dropping around £120 a day with experts warning that the year ahead looks bleak.

The report by Rightmove reveals that prices have fallen for the third consecutive month.

They have dropped by a total of nearly 5 per cent since October, including a 0.8 per cent decrease this month. It is a cruel blow for anybody who recently stretched themselves to the limit to buy a home.

Posted by little professor @ 12:13 AM (808 views) Add Comment

9 Comments

1. little professor said...

However our old friend Miles Shitside tries to put a positive spin on the figures:

Rightmove said the fall was due mostly to the rush of smaller and thus cheaper properties to the housing market in mid-December to avoid the HIPS legislation, accounting for about 0.7% of the 0.8 %monthly fall.

Miles Shipside, Rightmove's commercial director, said: "Some properties have had their prices dropped by 10 per cent or more."

As a result, many homes are now in the "affordability zone" for homebuyers who used to be frozen out of the market.

He said: "Enough sellers seem to have dropped their prices to encourage potential buyers to look in larger numbers, suggesting we might see a more active market at this lower price level."

Monday, January 21, 2008 12:47AM Report Comment
 

2. cornishman said...

He said: "Enough sellers seem to have dropped their prices to encourage potential buyers to look in larger numbers, suggesting we might see a more active market at this lower price level."

There might be more people looking, but if the price will likely be £120 cheaper tomorrow they will be in no hurry to buy...

Monday, January 21, 2008 07:09AM Report Comment
 

3. David Smith's Sub Prime. . . said...

"...The asking price of another house in the Gloucestershire village of Swindon has fallen from £299,995 to £194,950 over the same period...."

I do hope that this person who wrote this isn't the editor, or that people are relying on their financial knowledge or they might know that Swindon is actually in Wiltshire...

Monday, January 21, 2008 08:20AM Report Comment
 

4. Dan670844 said...

Perhaps people are just looking to see the values plumment. People tend to have morbid interest in such things, he did not say the volume of tranactions was up, because he can't, because they are not.

Monday, January 21, 2008 09:12AM Report Comment
 

5. C'mon Correction said...

Wow - Wales's YOY figure is -4% already ! Take inflation into account, renting cheaply and saving over paying big mortgage for a year in wales and you'd be over £10k BETTER OFF by renting over the last year instead of buying an average (£180k here in wales) home.

I guess that old saying "renting is dead money" isn't very true at this time !!

Monday, January 21, 2008 09:18AM Report Comment
 

6. inbreda said...

Exactly cornishman. We are rapidly entering "catching the falling knife" territory.

Monday, January 21, 2008 09:41AM Report Comment
 

7. sid public said...

The flat I rent costs me £1600 a month less than the monthly repayents would be on a Repayment Mortgage (and £500 a month less than if I was on an 'Interest Only' mortgage) if I had taken a mortgage out on the property when I moved in last year instead of renting it.

And I have got a 10% deposit tied up in the flat.

And I haven't spent £000's each on legal fees and stamp duty.

The question now though.... when do you finally decide to buy?!

Monday, January 21, 2008 11:23AM Report Comment
 

8. little professor said...

@David Smith's Sub Prime - Swindon Village is in Gloucestershire.

http://en.wikipedia.org/wiki/Swindon_Village

Monday, January 21, 2008 11:27AM Report Comment
 

9. Mark Wadsworth said...

CC, agreed.

Sid P, give it three years or so, this is the typical time from the top to the bottom (as happened in the 1950s, 1970s, 1990s) although there is no great urgency, the bottoms of the house price cycle tend to be quite long and flat, as opposed to the peaks.

Monday, January 21, 2008 11:52AM Report Comment
 

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