Friday, Aug 14, 2009
First indication that the nascent housing rebound is already fizzling out
FT: Concern that housing rebound could be 'fizzling out'
The auction price index showed that more than 40 per cent of properties sold at auction in July went for a discount of between 10 per cent and 40 per cent. This was a big increase in the dispersion of prices, after about 25 per cent were sold for 10 to 20 per cent discounts in June, and may point to increasing uncertainty about the right value for purchases.
Posted by sybil13 @ 07:46 AM (1296 views) Add Comment
9 Comments
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1. paul said...
B ... but the BBC and Daily Express promised. THEY PROMISED ...
2. refusetobuy said...
Sold at a discount to what?
Article says "discount on houses sold at auction compared with their value in the conventional market"
So maybe the news is that the value in the conventional market has increased while auction prices stay static.
3. mark wadsworth said...
The maths is a bit woolly (as RTB points out) but it's all good stuff nonetheless.
We know for a fact that between 1989 and 1995, house prices rose most of the time in the months April to June, and always fell in the months October to December (or whatever the exact months were, I'd lost my spreadsheet). A lot of us reckoned there would be a Spring Bounce, and there was. Big deal.
What winds me up is the constant drip drip of the idea that rising prices are the same as "the market recovering". Surely, the sign of a functioning market is where the price is such as to give the maximum number of transactions?
4. timmy t said...
refusetobuy said...Sold at a discount to what?
Exactly - hands up who's paid full price for a DFS sofa... anyone?
5. george monsoon said...
Timmy t - the answer to your DFS question is ALL OF US,
But I understand what you mean. These properties are probably listed in the guide as being "WORTH" x amount.. x being the full market value with a bit on top..
6. 51ck-6-51x said...
Of course, someone with a bit of time and who is willing to break the copyright referred in their t&c could get a trial subscription to Fathomm Consulting and post the report ( or just the necessary parts for us to fathom their logic ( sorry, understand their logic. )
7. hpwatcher said...
QE wasn't going to go on forever.....
8. britishblue said...
MW@3 Good point. My view of a market recovery is where house prices are the same in relative terms to per capita income as our key neighbours in Europe and they rise consistently between a 1-3% band a year.
9. mr g said...
Who on earth would buy a DFS sofa?