Monday, May 18, 2009
Rightmove - the rise actually reflects a mixture of 'ambition, optimism and necessity'
Citywire: Lack of sellers pushes asking prices higher
Asking prices rose 2.4% in May - the highest rise in May since 2003 - but the number of new sellers halved and many existing sellers were forced to cut asking prices. Rightmove said asking prices in May rose 2.4% month on month compared to a 1.8% increase in April. The average asking price in May was £227,441. Year on year, house prices fell 6.2% in the year to May, compared to the 7.3% fall in the year to April.
Posted by jack c @ 12:22 PM (1138 views) Add Comment
11 Comments
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1. will said...
If people couldn't sell a month ago, what makes them think they can ask more this month? Total denial or maybe greed by many sellers.
2. taffee said...
well that puts the average house asking price at over 9 x the average salary £23,500
Bizarre
3. kruador said...
Taffee, I don't know where you're getting that figure from. The mean salary of full-time salaried male employees, which is the figure that has traditionally been used, is £35,122 from ONS' last survey. On that basis the average asking price is 6.5x.
I believe a more sensible measure is to compare median house prices to median salaries, so neither statistic is skewed so badly by the people who pay themselves vast amounts and pay vast amounts for houses. I don't have median house prices, but the median weekly wage of all employees, including part-time and women, is £388.40, which works out to £18,643.20 if you use a 48-week year (statutory minimum 20 days' paid holiday). The 'average' house price (presumably mean) is 12.2x this amount.
Spot that the mean male full-time salaried employee takes home nearly twice what the mid-point of income is...
4. hpwatcher said...
It's an attempt to push the market into recovery; house prices are far too high and have to come down.
5. mark wadsworth said...
As my Grandad used to say " 'I want' never gets".
6. mark said...
And where do the ONS get the figures from , what do they exclude and can they be trusted to give us the correct figures anyway!!!
7. growler said...
It's May, and as all agents know: after Wimbledon Tennis the market is over. Knowing what we know on here, the recession will be very public as unemployment and incolvency rises toward the end of the year. Also, our darling chancellor will see his predicitons for recovery well and truly smashed. That means a winter of depressed house prices for sure.
To show how desparate agents are to get instructions, consider this:-
We're in Beaconsfield and had a leaflet through the door from SAVILLS. We saw the lady walk up and down every house driveway - so an instruction to mailshot everyone. You should know this isn't millionaires walk!! but a normal housing estate of bungalows and chalets.
The leaflet is offering a "free market appraisal". Meaning if we (Savills) can convince you to "give it a pop whilst you can, why don't you."
Now, a cinic would say that since the whole world knows the market is on a downward trend, anyone thinking "lets see" will almost certainly price unrealistically.
Multiply that through by all the agents in the UK, and it's very easy to see this as the last cry for a bit more money for the house before the market tanks.
8. Jim said...
Re 'average' salary:
http://news.bbc.co.uk/2/hi/uk_news/magazine/7581120.stm
9. george monsoon said...
Time to state the obvious to any VI who might be gleaming a sign of hope from the above article..
Houses are overvalued.
As a result first time buyers (FTB's) cannot get a foothold on the bottom rung of the property ladder because they are priced out.
No FTB ---> No chain -------> No sale
What happens when you can't sell? You lower the price.
This rule is universal. It is the law of economics and yet so many people are in complete denial of the facts (e.g. Mr S Davies in another thread)
How can house prices rise? who is buying them?
10. sneaker said...
Wave B bounce
Before Wave C destruction kicks in
11. Downsizingdiva said...
"Asking prices" - people can "ask" what they like. Buyers will pay what they think property is worth. I could "ask" £20,000 for my Y reg Renault, but I don't think many people would pay it.