Monday, Aug 16, 2010
Slightly edited text below
Telegraph: Property asking prices fall again
Property website Rightmove found sellers slashed prices by 1.7pc during the month to 7th August, sending the average asking price down by £4,091 to £232,241. Soaring numbers of sellers outnumbered buyers, with the imbalance in supply and demand compounded as many house-hunters took summer holidays. Rightmove found available stock per agent rose to its highest August level for three years, up 41.3pc on a year earlier to 29,220 a week. In more good news, they said that market conditions "bear some similarities" to the fabulous second half of 2008 when the credit crunch left prices more affordable by 7.1pc. The news will add to hopes of lower prices in the housing market, coming after the RICS recently said its members reported better value homes for the first time in a year last month.
16 Comments
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1. happy mondays said...
That's right houses are not selling as house hunters are all on holiday..probably stuck abroad because of a collapse of another holiday destination company..
2. Weeerdooomed said...
Ongoing restrictions in the mortgage market are hampering buyers, Rightmove added, causing pent-up demand.
- There has been pent up demand for years, since prices first started getting over the top.
It said while numbers of actual buyers are dwindling, it saw an all-time high of daily activity on the website earlier this month.
- So logically if numbers of actual buyers are down then the high in daily activity must be from all the new potential sellers checking prices in their area.
3. Papabear said...
Nice editing :-)
In fact, as far as I'm concerned, it is just common sense. Will our journos ever lear? One can only hope...
4. paul said...
Because unlike house buyers, sellers don't take holidays so a supply and demand imbalance occurs.
Wow. First it was the weather, then it was erm ... the weather, then it was the summer sales then now it is buyers taking holidays.
Nothing to do with prices being high. Nothing at all.
5. matt_the_hat said...
doesn't matter how much house prices fall wouln't buy in this flee infested swamp donkey trap if the average house was £75k (fairly valued 3*25k)
6. Arthur Kinnell said...
Miles Shipside, director of Rightmove, said: ''There needs to be a spur to cause prices to rise."
OK, Miles, listen carefully. If someone can't afford something, it could be because it's too expensive. If no-one can afford sonething, it's definitely too expensive, innit? Not difficult, now, is it? Miles?
The bloke on Radio Five, commenting on the bit in the article about fears for the health of the housing market, said, falling prices could be healthy. End of his career with the BBC then.
7. estrader said...
"Soaring numbers of sellers outnumbered buyers, with the imbalance in supply and demand compounded as many house-hunters took summer holidays. "
This is truly priceless. The poor "homeless" house-hunters can afford to take summer holidays while the wealthy homeowners stay at home...desperately waiting for them to return...*LOL*
8. uncle tom said...
London has always tended to lead the market, and the 4.1% drop there is quite significant.
~~~
Psychologically, the popular mindset seems to moving toward the notion that high house prices are a problem, and not an advantage. A little more negative data in the news should cement that view.
The change of government has taken us from an administration of baby boomers, glorying in their paper profits from property; to one that is suffering the pain of having to pay off mega mortgages.
My impression is that the consensus view of the coalition does not want further house price inflation, and is very concerned that the next generation will need somewhere to live that they can afford. However, I also sense an anxiety regarding the potential consequences of a rapid fall in prices.
In truth, the government has an impossible task. Not only is the market over-inflated, but the correction of the budget deficit obliges them to dismantle some of the structures that are supporting it.
Don't expect anyone in govt to publicly celebrate a fall in house prices, but don't be surprised if they appear quietly resigned to it.
I do hope Grant Shapps recognises the imperative of cutting through the environmental red tape; in pursuit of getting more homes built.
9. monty032 said...
There is a considerable amount of bear food in the Rightmove report with almost every region in England falling. The 4.1% fall in London asking prices is a particularly hopeful sign as this area leads the rest of the country. London prices compared to earnings fell the most in the country in 1989-96. Shipside talks a lot about pent-up buyer demand but little about pent-up seller frustration. The selling price is by definition the point at which one matches the other and they come to a deal.
http://www.rightmove.co.uk/news/files/2010/08/august-2010.pdf
I tried to post it as a new article but it says it is a duplicate article although as far as I can see no-one else has posted it.
10. mark wadsworth said...
As others have alread ysaid, the idea that potential pyramid scheme entrants put off buying because they were on holiday is laughable. Isn't the second quarter of the year traditionally a time with higher turnover (it's the most convenient time to buy/move for anybody with children?)
@ Uncle Tom 5, see subsequent post on rural referenda. Shappsy has his heart in the right place but The Fat One, The Horse Faced One, Greg Clark, Justine Greening (The One Whose Face Is Landscape Format) and all the others are firmly in the NIMBY camp.
11. techieman said...
This cant be right because the UK has a shortage of houses, so how can supply exceed demand. Nope that Peter Bolton Dickhead bloke said so.
R.I.P
12. sibley's love child said...
Rightmove; Sh*temove.
Meh.
13. sibley's love child said...
Rightmove; Sh*temove.
Meh.
14. sibley's love child said...
So good it needed saying twice, evidently...
15. symo said...
... but the housing shortage, blah, blah, blah, blah.
So the economic devaluing of the western world, sorry I meant to say stimulus hasn't worked.
Not one person on this site saw that coming did they?
16. techieman said...
"So the economic devaluing of the western world, sorry I meant to say stimulus hasn't worked."
No it hasnt worked cause both Gordy and the republicans got kicked out.