Monday, Aug 30, 2010
Past "Return to Normal", now moving to "Fear"
Bloomberg: U.K. House Prices Drop the Most in 16 Months, Hometrack Says
U.K. home values dropped in August by the most in 16 months as the housing market endured a “modest re-pricing” that is likely to last as long as a year, Hometrack Ltd. said.
Posted by estrader @ 08:10 AM (1304 views) Add Comment
9 Comments
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1. Crunchy said...
More QE and 0% Mervyn? Then what? A whole year to normalise, are you sure about that?
More questions than answers.
2. This comment has been removed as it was found to be in breach of our Blog Policies.
3. Wageslavex14 said...
That's a pretty bold headline for a 0.3% drop, though.
Also, is Hometrack not the least meaningful of all the indices? When it was showing prices going up evey month, I think we all largely ignored it.
4. mark wadsworth said...
Bear food. Yum.
5. icarus said...
Pussyfoot-speak for a depression. "housing market....modest re-pricing", economy "remains fragile", "growing weakness on the demand side", the "supply of homes has improved markedly", the "deleveraging process is incomplete", there is "considerable margin of spare capacity" and "further policy action may be necessary".
6. mr messy said...
sorry but some one must tell the estate agents this as house prices seem to be going up not down , although i must say none seem to be selling but it isnt putting people off asking high prices , i have put several realistic offers in only for them to be rejected. very strange
7. sneaker said...
It was only Italy's one-off tax amnesty that held the market up for the last year.
All that off-shore Italian money came into the EU, and then headed straight for London property.
Ask any prime agent - it was Italians more than Russians and Arabs doing the buying.
Now that's over, timbeeeeeer!
8. Blackers said...
The unusual liquidity that was around last year is now drying up - cash buyers left-over from the boom of 2007, renters moving out in 2008 to catch the market as it started to head back up and private investors in 2008-2009 moving out of stock market into housing.
Add to that our friendly EAs who managed to blag their way through last year on less than 50% sales transaction whilst all the time talking the market up, must now face the fact their own cash flow is under pressure - just look at the finance's of the larger EAs. They'll have to put pressure on their vendors to drop prices to shift stock because as EAs can't afford a further lowering of transaction levels- as this will put them below breakeven and into negative cash flow, if they aren't there already.
I have become significantly more bearish.
9. novice pete said...
mr messy said...sorry but some one must tell the estate agents this as house prices seem to be going up not down.
but the GDP figures are up so it's happy days the recovereh is here, slap on 5-10k and we'll be laughing all the way to the bank.