Monday, Mar 15, 2010
Rightmove: +0.1%MoM
Bloomberg: U.K. Home Asking Prices Have Smallest Gain for March on Record
U.K. home sellers raised asking prices by the smallest amount for March on record as the supply of available properties increased, Rightmove Plc said.
The average house price in England and Wales climbed 0.1 percent from February to £229,614. the smallest increase for the month since data began in 2002. London asking prices fell by 2.5%.
The number of properties on the market jumped by 17.5% compared with the previous month and 34% compared with the same period of 2009
Posted by little professor @ 12:53 AM (1080 views) Add Comment
8 Comments
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1. fubar said...
The whole idea of asking prices being useful for anything other than as a barometer for sellers delusions is the biggest pseudo-event since Daniel Boorstin coined the term.
2. paul said...
The magical 0.1% returns!
Too small to show up in the figures, but most crucially not a negative number. No doubt the Bank of England will take fright at this and restart their moneyprinting gambit.
3. sceneclub68 said...
It also seems a little strange that they are publishing the figures for March when we are only half way through the month. One might be tempted to say that this reduces the credibility of this index, but it would probably be impossible to do that because it starts at such a low base.
4. mark wadsworth said...
According to City AM, the number of properties in London up for sale has increased from 3,000 to 17,000 over the last month.
5. luckyjim said...
MW
A fivefold increase in a single month ?
6. str 2007 said...
They also note that London prices are down 2.5%.
This could obviously be due to the increase in numbers for sale, the majority being from the lower end, therefore reducing the overall.
I must admit I did ponder over the weekend as to how high prices could go.
I concluded that the market has been thrown
1/ BTL
2/ Self Cert
3/ Ludicrously low interest rates (infact they can't really go lower)
So unless another wonderful wheeze comes along which includes your childrens future income or something (you read it here first), then the only realistic increases are going to come from wage increases.
Wage increases seem fairly unlikely over the next 2-3 years.
So assuming banks keep lending multiples in check I'd say the majority of pressure now on house prices is downward.
Particularly as now the 'Baby Boomers' are likely to start looking to downsize. (Sorry this one's for me looking for a family home, it won't help FTB's much).
7. house said...
MW, I agree but don't you think that prices are perhaps going to stabilise at the current levels for a long time say 10 years like in the previous crash assuming that the lenders act responsibly. Some may call it stagflation. I would call getting to reality. In USA it happened quicker, which means that their labour cost do not have to increase to pay for the higher property costs whereas we have to in this country. This means higher inflation as the labour cost will have to go up to pay for the higher cost of living. Do you agree ?
No doubt there will be some savvy sellers who be willing to reduce their prices to achieve a sale and make up their loss by offering a lower price for the one they are buying ie.if they have enough equity to play with. Otherwise we ave a situation where there will be many sellers and the buyers will stay away in the knowledge that prices are not going go up. It will be the builders of new homes will decide what the new level for prices are going to be as they need to sell their properties to survive in business. This will then determine the second hand house prices.
Perhaps we are going to have a level playing field for the next 10 years. Everyone would be waiting for the earnings to catch up so that the merry-go-round can start once again.
Also do you still feel that the inflation will reach maximum 4% and perhaps then start to fall again in the next few years.
Your thoughts would be appreciated for my sanity.
Also do you have a business e-mail address as I know that you are a member of CIT so that I can contact you separately if required on tax matters if required.
Look forward to hearing from you.
Thank you
8. The Baldman said...
house said...a large driver must be where people have to sell...new jobs...reduced circumstances..unemployment....retirement. The rest will probably stagnate.