Saturday, Aug 29, 2009
'Double dose of good news'
Express: HOUSE PRICES JUMP
HOUSE prices rose by 1.7 per cent last month – the biggest increase for five years.
And in a double dose of good news it appears the economy could be recovering sooner than expected. Official data revealed the recession is not as severe as originally feared. The nation’s Gross Domestic Product fell by 0.7% last quarter – not the 0.8% predicted.
A survey by Rightmove showed 78%of people think house prices will not fall any further over the next 12 months.
Posted by little professor @ 10:13 AM (1778 views) Add Comment
24 Comments
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1. paul said...
Daily Express Headline 20 May 2008:
2. paul said...
10 April 2009:
31 July 2009:
06 Feb 2009
3. mystie010 said...
Well that's alright then, let's all go out and celebrate! When will they (The Express) reallise that propbably more people want a fall in prices than want an increase! - what planet are these guys on! We have just got to convince everyone that NOT BUYING A HOUSE and NOT being in massive amounts of debt is the new black - it's all about psychology. Indeed buying a house you can barely afford to pay for is really passe and it's not really your house anyway as it technically belongs to the bank. Get real Express! - high house prices were so last summer or should I say so 2007. We have all now moved on at our dinner parties and the topic of conversation is no longer crazy house price rises. Don't you think that that being an amateur landlord or amateur property investor is just another way of saying 'I'm so thick I can't think of anything else to do career wise and der I'm too stupid to employ' Rant over! :-)
4. titaniccaptain said...
I am giving this chap a lot of airtime on my site....have a watch..........he talks sense.......
http://www.economicvoice.com/speakers-post.php?post=280
5. taffee said...
looks like someone at the express has a large portfolio of buy-to-lets then
6. will said...
House prices rising will not lead Britain out of recession. It will only cause massive future misery for millions who borrow too much from the banks compared to their incomes.
In the US asking prices for houses has nearly halved - no denial there. In France, Spain and Ireland asking prices are down a third.
In the UK many houses are still at levels seen in 2007. Utter denial.
So what happens now that the UK's houses are much higher than the US, France etc - reduced foreign interest.
The newspapers have to create headlines everyday and, as Paul has shown above, they blow with the wind.
Alistair Darling said a week ago, 'don't listen to the mortgage leanders or estate agents, prices will continue to fall for a long time'.
7. luckyjim said...
Alistair Darling said prices will fall ?
BUY BUY BUY
8. Brightwell said...
'looks like someone at the express has a large portfolio of buy-to-lets then'
Investments of 'Dirty' Desmond (owner of Express) include a large property empire and (allegedly) pornography.
9. paul said...
@titaniccaptain
You cheeky devil bigging yourself up!
@will
Do you have a quote in an article where the Chancellor says that?
10. mark wadsworth said...
Mystie "propbably more people want a fall in prices than want an increase!"
I don't think that's true. Seventy per cent of UK adults are home-owners and ten per cent rent privately. A few home owners might want prices to fall because they want to trade up or because their children are struggling to buy, but the bulk are totally fixated on today's capital value, and hence outnumber people who want prices to fall by about three-to-one.
I assume that the twenty per cent of social tenants aren't bothered either way.
11. titaniccaptain said...
LOL Paul.....thats not me in the video.
12. taffee said...
I imagine that 100% of people who hold shares want shareprices to go up...doesn't mean they will though
13. montesquieu said...
Meh!
But seriously, I don't understand the fixation with the Express. It's a wonder it's still going.
Average yearly circulation:
1956 4,042,334 (when what this paper said was arguably of some importance)
1997 1,241,336
2009 736,340
Looks like it's losing readership even faster than they can die off.
14. wiltshire said...
There was a survey sometime last year where a majority wanted house prices to drop (I'm trying to find some evidence of it). I'm sure many homeowners would prefer a more stable and affordable housing market, so they could trade up. Additionally, not everyone will have MEW-ed and aren't terribly concerned with the price of their home.
15. wiltshire said...
Here you go:
http://www.dailymail.co.uk/news/article-565888/More-people-want-house-prices-fall-rise-survey-shows.html
16. tenant super said...
"I assume that the twenty per cent of social tenants aren't bothered either way."
No entirely true. There are a minority of social tenants who are working, have a reasonable income and want to take advantage of the 10% equity stake the tories have pledged to give them and buy the remaining 90% with their right to buy discount (which the tories have also pledged to extend).
Also social tenants have children too and want them to be able to afford a home and realise there's not enough social housing to be able to offer young people except those with multiple social problems or need.
And finally overpriced housing drives more and more people into the social housing sector where they compete for a limited number properties making transfers within the sector very difficult.
17. mystie010 said...
To mark wadsworth at post 10 - I actually knew about the survey at post 15 - cos I'm a smarty pants :-) - thanks wiltshire! However on a more serious note. These type of headlines could actually be just what we are all need. For example a friend of mine said she had taken her house off the market because prices were falling. However last week she said she was going to put it back up for sale again because prices were now rising. If everyone who has property to sell thinks like that, then bring it on! Lets have more house price rise headlines like that and then we may begin to see the kind of volume of property coming back to market that will eventually crash it down again. It's just a thought?
18. shining wit said...
I agree with mystie010.....
And estate agent I know informs me that he has doubled the amount of properties oming onto the market in the last month..
19. europeanbear said...
It isn't a recovery for goodness sake, more like a coke-fuelled junkie taking an extra snort to avoid falling over.
20. crunchy said...
6. will said...Alistair Darling said a week ago, 'don't listen to the mortgage leanders or estate agents, prices will continue to fall for a long time'.
Brown, Darling. A classic case of good cop bad cop. When the banks finally have their fill they will kill off the bailout host.
Interest rates will be the soft kill weapon of choice. Sterling collapse, hyper inflation and to make it all OK Darling's words of warning will be
quoted in front page fat type. Meanwhile it's game on, keep the people happy for the next massive bailout.
Frankly I can't wait to see it happen. It may be the shock that the masses need to finally wake up from their slumber!
They will have to borrow back their own money with massive interest rates on top. That's what I call a business model.
21. mark wadsworth said...
Mystie, Wiltshire, I stand corrected.
That article said 28% wanted falls and 22% wanted rises, and "nearly half" wanted them to stay the same (is 40% the same as "nearly half")? (I'd guess on this site, ninety per cent of us want/hope that house prices fall)
But that still gives 68% who want prices to stay the same or rise. So, naked self-interest apart, politicians are doing the "right thing" by trying to keep the bubble inflated - as far as I am concerned people who want prices to stay at their current ridiculous levels (OK, that survey was year ago) are nearly as bad as those who want them to rise.
22. mytimeisnigh said...
Everywhere I drive through in the West Mids has plenty of for sale or let signs. My tenancy expires in November and I'm going to put my furniture in storage and look for a room to rent or stay with friends, whilst I gather my thoughts. I'd rather save the £600 I spend a month on rent.. or go on nice hoildays. I think there may be others out there who have been complacent about spending money on rent, whilst property prices has been falling but now they're temporarily stalling, resent paying someone elses mortgage. So this property will soon have a to let or for sale sign outside, adding to the supply.
23. wiltshire said...
Mark, or it could be argued, from that survey, that 78% of people do not want further house price rises. That's quite a headline, but you'd never see it on the BBC or the Express.
In September 2007 my sister, who's a qualified accountant, bought a new build house. I discussed it with her at length and suggested it might not be a good time. I remember one particular discussion with her where she said she realised that house prices where too high and that they wouldn't (couldn't) go up any further but that they probably wouldn't go down either, they'd stagnate. Her head told her what was obvious, they were too high, but her heart gave her reasons why buying at that stage was the thing to do. That for me is one of the main problems, people are optimists and generally always think things will work out well in the end. When was the last time a nation of home owners had to contemplate a future so bleak that house prices could drop 30+% in 2 or 3 years?
24. new user 2007 said...
“There is a chronic shortage of supply in the capital, which is fuelling intense competition among buyers for properties that remain at attractive prices."
Not sure how prices are defined as attractive in this case. REAL prices have not budged much in my area of London since August 2007. ASKING prices have, but that is not the same as saying prices are now attractive. In fact, prices for 2 bedroom flats in my area are still at 8 times average London salaries. All very odd.
Cash buyers are buying a few over-priced yet better properties and skewing the price sampling bias upwards (more generally, I don't think we can use the small size of the sample as a misrepresentation, as that factor would have worked when prices were falling as well i.e. that factor in itself works both ways).