Monday, May 18, 2009

Yeah, but their only ASKING prices

Press Association: Property asking prices rise

Asking prices for properties have risen for the fourth month in a row as new sellers continued to quote optimistic prices for their homes, research revealed.
The average asking price of a property in England and Wales increased by 2.4%, or £5,000, during the four weeks to May 9, to stand at £227,441, according to property website Rightmove.
The group said sellers may be pricing their homes at higher levels due to concerns about the extent to which their equity has been eroded, making it difficult for them to trade up the property ladder.

Posted by bufferbear @ 12:51 AM (821 views) Add Comment

10 Comments

1. crunchy said...

The group said sellers may be pricing their homes at higher levels due to concerns about the extent to which their equity has been eroded, making it difficult for them to trade up the property ladder.

This would make the situation worse. D'oh.

Someone needs to show these dreamers the old stock that has not sold at reduced prices.

It seems to be going from bad to worse for EA's, but they are more than likely cheering. Oh well!

Monday, May 18, 2009 02:05AM Report Comment
 

2. d'oh said...

What I have never quite understood is the great discrepancy between average asking prices and average sale prices.

Monday, May 18, 2009 07:31AM Report Comment
 

3. Justanotherftb said...

What is there to not understand?

Those who have too high an asking price and do not consider reasonable offers don't sell and their pwoperty sits on the market for months or years.

Those who ask a more realistic asking price, or who consider the low offers they get on an unrealistic one may make a sale.

There's so much denial in sellers where I am it's really frustrating.

Also why don't people realise that if *everything* on the market gets cheaper, trading up is actually *easier*. The average property owner seems to me to be really, really stupid.

Monday, May 18, 2009 07:38AM Report Comment
 

4. sybil13 said...

Property not selling ? WHY NOT INCREASE YOUR PRICES , yeh like that works! Miles Shipside, Rightmove's Director has been saying since January sellers need to reduce their properties 25 - 30% and that the increase was "more bad news than good". I track 50 + properties on Rightmove, they have been there for months and not ONE HAS SOLD. As for sellers not being able to trade up, it is cheaper to trade up with 30% off.

Property £250000 2007

Property to trade up to £300000 2007

Would have cost you £50000 to trade up

Property value now 30% off £175000

Property to trade up to 30% off £210000

Will cost you £35000 to trade up.

Monday, May 18, 2009 08:15AM Report Comment
 

5. Natural_born_pessimist said...

Morning All,

Does anybody know if the Rightmove index is mix adjusted? If not, the figures may reflect a higher number of detached homes in the South East coming to the market, for example. I suspect that even a well intented mix adjustment still omits key details, notably age of property and an adjustment or intra regional variation. For example Farnham will always have higher property prices than Aldershot and higher number of properties for sale in the former will increase the index. These indices are no substitute for personal due diligence I guess!

Thanks

Monday, May 18, 2009 09:15AM Report Comment
 

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7. Neil B said...

@ Sybil - EXCELLENT!!!! You should be an EA instead of those leaches that we have to deal with.

Monday, May 18, 2009 11:10AM Report Comment
 

8. mander said...

More advice from Rightmove...

They will start building soon. The country can not afford to have another industry dead.

Monday, May 18, 2009 11:41AM Report Comment
 

9. debtfree said...

so what happens if prices keep going up and you just can't afford to buy ?

the limit has been reached. our rent is cheaper than an I/O mortgage, so what is the point of buying ?

Monday, May 18, 2009 12:41PM Report Comment
 

10. jonb said...

Rightmove is not mix adjusted. We saw that when there were a couple of wobbles due to people putting homes on the market before HIPS came in.

Another thing to consider is that sensibly priced houses don't stay on Rightmove that long as someone buys them, therefore we are left with all the stupidly priced properties that nobody wants to buy.

Monday, May 18, 2009 07:22PM Report Comment
 

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