Saturday, Aug 22, 2009
The new property prophet?
Telegraph: Rightmove shares soar 19pc as it says property prices have bottomed out
"Shares in Rightmove, Britain's biggest property website, were the stock market's best performer on Friday after the company surpassed market expectations with its half-year results and forecast continued growth. Pre-tax profits fell 8pc to £18.2m, but the company is using the recession to increase market share, with sellers favouring online advertising over more traditional areas in an attempt to cut costs ... It said that it considered property prices to have "bottomed out", and that it would look to increase its prices early in 2010." You just can't beat impartial advice.
Posted by quiet guy @ 12:58 AM (1312 views) Add Comment
7 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. mr messy said...
BOTTOMED OUT, what planet are these people on , people are in fear of losing their jobs , i can say their wont be many pay awards over the next few years, and in my area your average 4 bed detached prices havent dropped at all since 2007 in fact some have gone up 5 percent, there doesnt seem a level playing field out there at the moment. lets get interest rates rising again, thats the only way to bring house prices down to a sensible level and reward people who have been sensible with their money over the years
2. paul said...
This is laughable. Rightmove's index of asking prices showed the biggest slump this year.
3. taffee said...
the reason for the recent credit crisis was asset bubbles that were unsustainable....and they predict a return to that?
And so what happens when interest rates are increased?
4. sybil13 said...
Not quite what RM said in their latest HPI was it?
“After several months of activity and prices revving upwards from last winter’s low point, both will start to hit the limiter without more mortgage finance. In spite of pent up demand, the market and pricing is boxed in by restrictive lending criteria put in place to ration mortgages given the lack of funds available to lenders” ..." Future price and transaction growth is now controlled by the bottleneck of mortgage availability. This is unlikely to change for years to come, with the Centre for Economics and Business Research (CEBR) forecasting that mortgage application levels will recover slowly and remain well below the levels seen inthe early part of this decade as far ahead as 2013. Even in 2013 the CEBR state that numbers will still be 24% below 2006 levels. This may well reflect a paradigm shift in access to mortgage lending. HSBC is the only major lender to have taken a more proactive stance and increased its market share, its reported average loan-to-value of circa 50% on new mortgage lending is a perfect illustration of the new era of both caution and cherry picking."
Doesn't sound like market has bottomed does it? One has to ask however, will RM drop property values before it starts to put them up next year? Still waiting for the 25% drop in value that RM said EA's should advise sellers to reduce this year....
5. will said...
'48% reduction in new instructions' - sounds like they are in the preverbial. Shares have risen along with most other stocks but there may be another sell off soon.
6. drewster said...
RightMove makes money on the volume of sales, not the selling price. If the market is flooded with distressed sales then Rightmove is quids in - and that's (hopefully) what's happening now!
7. inbreda said...
sounds like insider dealing to me. Would Dell get away with boosting their share price by announcing that computers were "Flippin marvellous"?