Thursday, Mar 27, 2008
LandlordExpert
LandlordExpert: PM, Thurs 27th March - UK house prices rise again in March according to Rightmove
House prices have risen for the second month running in March as sellers pushed for near record high prices, despite increased competition from other unsold properties and tighter credit conditions, according to a key property survey.
Posted by titaniccaptain @ 08:09 PM (1959 views) Add Comment
26 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Davros said...
Yeah, nice one.
2. Si said...
It was all too predictable really wasn't it.In a year's time everyone* will be wondering why they didn't see it coming a mile off.
* Apart from us that is.
3. quiet guy said...
So asking prices are still rising (a pity we don't have selling prices but oh well). It's easy for us in our little HPC community to forget that a lot of people are totally unaware of our country's financial problems and certainly aren't ready to take a hit on an asset that supposedly never drops in price. I'm beginning to suspect that we will get a massive stalemate in the market. Buyers unwilling/unable to pay and sellers unwilling to cut. Total gridlock. Without any real fear in the seller's camp, they will not cut prices unless they absolutely have to sell.
4. hpwatcher said...
We have had 10 years of rising prices, so the whole market has been conditioned into these increases. The sad thing is that the market has changes...the days of double digit growth are well and truly over.
Shame sellers can't see that.
5. drewster said...
This is a rise in asking prices. The sellers are expecting the traditional "spring bounce" - well they're in for a shock!
6. enuii said...
First casualty will be the estate agents then, watch out for job-losses and smaller branches closing in the next 6-8 weeks.
7. dohousescrashinthewoods said...
So sellers (EAs?) are asking for 5% more, kowing that the press has been advising people to "drive a hard bargain" by offering 5% less than the asking price.
Heh, bless.
8. What Goes Around. . . . said...
my sentiments entirely ha ha ha ha ha hah ha ha ha ha ha, yes of course they are rightmove, and my mums the pope!, cant these people read? dont they look at their own site????,or look at the local property pages? or is just the grasping sound of blind faith.
9. Wadisgod said...
Just checked London e4 £2,550,000 for three bed end terrace!!! I can see why prices are rising!!!!
10. Renting Is Fine said...
Sellers rising prices by 5% still expecting price rises and with buyers purchasing power dropping through the reduction in what lenders will lend, can only mean sellers are going to get an even bigger shock.
11. mark wadsworth said...
Anecdotal evidence - somebody I know who sold up a couple of months ago was patted on the back yesterday by the selling agents, who admitted that nothing was moving any more and that the vendor had got out in the nick of time.
12. quiet guy said...
@dohousescrashinthewoods
I suspect that you are right in some cases. I would not be surprised at all if EAs start adding 10% to the price intending to offer 'bargains' to the more naive buyers.
13. This comment has been removed as it was found to be in breach of our Blog Policies.
14. Fed Up said...
Well if Rightmove says prices are rising Mervyn and Co have no 'need' to cut the base rate.
15. new user 2007 said...
This is now old news. Post CGT (April) and spring are when we will see a new dawn (as sellers return and silly buyers can no longer be a danger to themselves as the credit as been cut off). This was the story that excited Greenbay because he does not know the difference between Asking and Actual prices.
What scares me is how one-sided the interpretation of the Rightmove figures is by that site. It completely distorts what was said, including ignoring RM comments that sellers are being unrealistic on prices (we will ignore that the RM Index may well have been distorted by higher value properties being put on the market).
16. titaniccaptain said...
Nice clarification new user 2007
17. happyrenter said...
reality is pretty clear here in mid Hants
- asking prices are still reflecting last years imagined 10% HPI so going up as per Rightmove
- many more top end properties appearing than usual - I'd say more than double last year's number already
- only the odd few going under offer (will wait an see if they actually go through...)
- some at 500k+ market dropping asking prices by >10% a time and still not going under offer (550k to 465k, 600k to 495k, etc)
oh, and there's a shedload of developments coming to completion. If the spring encourages any more onto the market this will look like a selling bubble and I can only see the stalemate breaking one way - down and probably for the more desperate few, very quickly....
18. new user 2007 said...
p.s. given how reliant we are on housing, domestic financing and the City, we are about to get the rug pulled out fom under the economy. The economic multiplier through redundancies will be huge and trigger unemployment. On top of that the fall in the hsouing market will trigger a consumer spending shock and another multiplier fall.
No one said that IQs had risen since August (the credit crunch accelerated what was about to happen anyway as the model was unsustainable), it is just that the people who have been paying too much just because they could are no longer getting funding.
This a wind down of the credit cycle. BoE interest rates have always been the trigger for the credit cycle to turn in the past, this time it is no more access to cheap funding. But the credit cycle has turned...as long as it remains as it is now, the housing market can do nothing but decline.
FTBs need to hope the cost of mortgages remains high and restrcitions on multipliers and deposits increase. Access may be limited for a while, but if restrictions remain for another year, FTBs will be able to ultimately buy a house for much less. It is twisted logic from the govt and VIs that FTBs suffer if they can't get excess debt!
19. sold out said...
when the btl sellers arrive on masse in April and the spring bounce doesn't,reality is going to sink in and the prices will begin to tumble big time.The current stalemate is unsustainable.
20. s2rjul07 said...
@happyrenter
I can relate to your anecdotal evidence regarding top-end properties. My latest rightmove update (Bath) was full of prime 500K+ properties ranging up to 2 at 1.5M. I was gobsmacked - I am used to one such prime property a week at most. I didn't expect the credit crunch to push the supply of prime up so much.
21. Sunnysis said...
I am confused by the property 'talk-up' - the economic factors and property cylce don't add up to further rises...and yet. I am negotiating to sell my property for below similar asking prices in an area that traditionally has a slow market, the buyer is sticking at well below market value, but other properties are not selling. I will be moving to a more expensive (and popular) area and will have to downsize. Do I risk losing £5,000? I am currently living overseas and it is really difficult to judge issues remotely. Will the lull last or are the prices just hype???
22. hpwatcher said...
oh, and there's a shedload of developments coming to completion.
Yes, there will be absolute carnage!
Not long to wait now before the collapse!
23. hpwatcher said...
The current stalemate is unsustainable.
Absolutely. Buyers only have to do nothing; sellers will be paying to just keep houses empty or worse!
24. Lloyd said...
Banks are insolvent and have no money to lend, the FED and BOE are printing money as fast as they can but it does not change the fact that both are now illiquid. Credit or debt as it should be called has fried up. Realism needs to dawn on the EAs and homeowners it's a simple case of supply and demand. There is a great deal of supply and 0% demand. Confidence in the ability of the authorities to continue with the illusion are at an end. Game over.
25. Str2007 said...
@ happy renter.
in september last year a 500k property would make the first page of rightmove in chandlers ford, hampshire. 7 months on and the first page is dominated by 600+ houses, same spec. and 500k is relagated back to page 3 or 4. asking prices are up approx 10%+ since northern rock
26. Janelle said...
And when house prices drop, hopefully first time buyers will be buying homes from the buy to let landlords, who are unable to let their little retirement nest eggs, bless them, because all the first time buyers are buying and not renting homes. Homes will once again serve the function for which they always should - to live in near your work, bring up families in, and eventually pass on to the next generation. Ha Ha.