Wednesday, May 21, 2008
Report out at long last,. Prices down, stock unsold up
Primelocation: April houseprice report
At long last - a nice read from the highest of the asking price surveys
Posted by growler @ 01:35 PM (676 views) Add Comment
5 Comments
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1. doom&gloom said...
The April edition pleases me. They seem to have been the only index which has shown price/rental growth throughout 2008 so far. Good to see they are seeing the gloom that the rest of the indices are showing.
Especially happy that rents are falling. There has been some interesting debate on this site and the media about whether rentals are going to be going up or down. Renters of the world unite.
2. doom&gloom said...
Prime Sales - "Sentiment has changed very quickly over the last two months, with the stock of property increasing, as
sellers rush to sell before the market gets any more difficult and as property takes longer to sell while buyers remain cautious. But while an increase in the accumulation of stock would normally drive prices down, sellers remain bullish about the potential value of their properties and, as such, asking prices are yet to start falling".
A perfect storm.
Prime Lettings - "After a period of sustained price growth in 2008, April sees average rental values drop by 1.2%. Stock levels have risen by 36% over the last 12 months, with a further 6.9% rise reported in April. Annualised rental price growth falls to 9.0%, down from 11.3% in March 08".
Excellent. I was starting to worry that all my good work selling-to-rent would be undone by exorbitant rent increases due to potential FTBs denied their 'Together' mortgages, now having to rent. Just off to tell my landlady the good news...
3. cyril said...
doom&gloom - be careful all your hard work isn't undone by mega-inflation over the next couple of years.
You may wish you had held on to that house as a hedge against inflation, unless you can think of something better to do with your pile of cash.
4. doom&gloom said...
@cyril. Very true. Currently invested in gold and plat etfs. Plus derivatives shorting the FTSE 100. Have euros and yen as well.
But unfortunately majority is still cash in sterling, so if you've got any good ideas then let me know ;-)
5. Kruador said...
I don't see where this flood of new renters is going to come from. There'll always be a small number of young adults wanting to flee the nest, but in order for owner-occupiers to sell and start renting, they need to find a buyer. I think there's a limited number of mugs willing to buy at the top of the market.
There are migrant workers, of course, but generally they seem to come to the end of their contracts and go home again.
With no increase in the demand for rented property - of which there is already an oversupply - I don't see the price rising.