Monday, Feb 15, 2010
The report is realistic when read
Rightmove: Price jump as agents scramble for stock
· Scarce new sellers bump up asking prices by 3.2%, an average increase of £7,137 with
London setting a new record of £427,987
· Monthly rise reminiscent of boom-times; there has been no higher rise since April 2007
when we saw a 3.7% increase
· January sees record search activity on rightmove.co.uk, up 29% on same period last year
· The economic fundamentals cannot support further price increases of this magnitude
Posted by dill @ 07:51 AM (1786 views) Add Comment
21 Comments
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1. Thecountofnowhere said...
I'm amazed at this, so far in Northants area i've seen approx 1000 properties a week come onto the market since the new year.
All at silly prices thought.
The rush to sell may have started, unfortunately for selelrs there is a reason why prices collapsed in 2007...err...houses arent worth anywhere near these levels.
2. hpwatcher said...
Perhaps mass immigration was part of the Labour plan to keep house prices high?
In any event, it's like 2007 all over again....though the volumes must be very, very small.
3. paul said...
Hang on - this is BS.
The supply side is between the seller and the intermediary, not the seller and the buyer. Therefore the only thing that will get negotiated in the absence of a buyer (demand is remaining constant) is the seller's commission.
So absolutely no effect on selling prices. That won't stop the BBC pouncing on this like a fly on erm ... yes.
4. wdbeast said...
Where I am (South East Midlands) we currently have three types of property coming onto the market.
1.The properties that didn’t sell last year, were taken off sale before Xmas and are now being remarketed at the same or slightly higher prices.
2.The properties that didn’t sell last Spring/Summer, were rented out on 6 months tenancies and are now being remarketed, all at higher prices than last year.
3.Properties new to market that are all being offered at peak 2007 prices or even higher.
The asking prices are all totally unrealistic IMO and I cannot see many sales being achieved this selling season.
Although there is a without doubt a big crash on the horizon, it will not be until at least next year in my area.
5. hpwatcher said...
The asking prices are all totally unrealistic IMO and I cannot see many sales being achieved this selling season.
Although there is a without doubt a big crash on the horizon, it will not be until at least next year in my area.
I agree with all of this.
The think that is scaring me, is what is going to be coming with the next leg of the downturn.....because this thing is just getting started......
6. dill said...
Just in case my title is misinterpreted, the scent of realism lies in Shipside's comments and not the barmy numbers.
7. Nightflame said...
I am now begining to think we are now on the part of the bubble curve where we have just come out of the bear trap!
With house prices back to the 10% a year increases plus my rent, and almost no return on my savings, I am now around 4,000 pounds worse off a month by not buying an average shoebox in Berkshire for 300K. No wonder Estate Agents are now urging everyone to quickly get on the "property ladder" or get left behind. Forever.
I just don't see how any of this stacks up against reality, and haven't for the past 6 months. But I now believe that the house price crash has been and gone. At worst house prices will bump along the bottom, but most likely they will return to their "normal" growth of 10%. Property in the UK really seems to be a one way bet, that not even the worst recession in years can derail.
8. fallingbuzzard said...
I wonder what happened to the other 550,000 houses that listed on Rightmove. I bet they increased their prices by 3.2% as well!
9. Archiejc said...
We've been house hunting in rural Kent, no property to sell, deposit of 75k sat in the bank and I'm on a 90k package as a medical consultant after spending the last 12 years doing exams and working in junior doctor posts for a third of my current pay. We're being forced into buying later this year because we need to be in a school catchment area - renting doesn't give us stability for schooling. We're in rural Kent. The best we can afford is a small estate 3 bed detached, or a 3 bed semi. There are 3 bed old people's bungalows on the market in the Kent Weald for 400k. I've been working flat out for years in a professional training - 5 years of med school, 12 years of post graduate training, and my first home as a consultant will be equivalent to the home my parents raised me in when my father was a police constable under a labour government.
Many of my colleagues are in Canada or Australia now, and they're all quite happy. I've just registered with a few aus recruitment agencies. The problem with the property market in this country is that not only will it collapse, but it will fall further than many people expect, and for a heck of a lot longer. You'll be losing money on UK property for years, even if you think you're getting a bargain in the next leg down. We'll just have to keep renting, or move overseas. Good luck Britain.
10. Andrew said...
Volume is low according to this graph
11. andrew said...
12. mark wadsworth said...
Thinking on, is it possible that this jump in average price is because all the properties for £175,000 or less were hastily shifted before Stamp Duty Land Tax threshold went down again on 31 December 2009? So they're no comparing like with like?
13. jack c said...
Rightmove's asking prices are (IMO) pretty much irrelevant - it's the equilibrium price that really matters.
I have just started marketing my parents 3 bed 1950's semi through Rightmove - asking price £999,000 - here's hoping !
14. luckyjim said...
Paul,
When agents are competing to get a property on their books they will play a game of 'dare'. And sellers usually go for the agent who 'dares' to go with the highest valuation. This does push up asking prices.
When I was looking to buy there were certain agents I just ignored because all their properties were over priced.
15. matt_the_hat said...
9. jack c - interesting thought - should we all goto estate agents with our properties and stick them on the market at £1bn each (wonder what numbers it would take to skew the market in these low volume times) then the next month would be terrible.
16. jack c said...
matt_the_hat
If you go in at £1bn this month, I'll come in at 1.1bn next month and we can force the rightmove index to infinity and beyond - I suspect we'll be flooded with offers over the asking price (LOL)
17. Corriander said...
Archie @ 9
That pretty much says it all really about the state the UK has got itself into over housing.
18. matt_the_hat said...
No JC (i'm being serious for once - maybe not about the numbers) - can't we (HPCers) setup an account on rightmove to sell properties (that we own) for vastly inflated prices and with such low volumes couldn't we skew the stats. Would be interesting if they have outlyer detection in place to spot the £5m 1 bed flat in Bromsgrove. All we have to do it invalidate the statistics and bingo the preverbial house of cards comes crashing down. BTW its all above board because if you do sell you 1 bed for 5mil then whose complaining (apart from most of us on here)??
19. tenyearstogetmymoneyback said...
Nightflame
I haven't seen you post before so I will just add my usual sig
Duncan
Bought 1989 £65500, Best offer 1995 £48000, Sold 1999 £70500.
Property is certainly NOT a one way bet. It's just that people have very short memories.
20. Cool_hand said...
Goverment should hang its head in shame. They have fueled a monster that does nothing to address the fundamental problems.
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