Auction Prices Rising Markedly, Bank Repo's Down

[HAMISH_MCTAVISH]

Latest results show an 86% sale rate and £46m raised

Allsop’s two-day residential auction, held in a back-to-back marathon sale last week, reflected the continued rally in house prices.

The auction house’s sale rate remained stable at 86% – down one percentage point from its February sale – while the total raised increased by 11% to £46.1m.

Held at London’s Cumberland hotel last Tuesday and Wednesday, the sale contained more lots than February’s, but Allsop still sold fewer than it did at the end of last year – a result of a continued drop in the amount of repossession lots in its catalogue.

The number of repossession lots dropped to 50, while the number of properties from LPA (Law of Property Act) receivers was 150 from a catalogue of 369. Last year, on average, 85% of Allsop’s catalogue comprised repossession lots.

Allsop auctioneer Gary Murphy said this reflected increased pressure from the government on lenders to hold back from repossessing homes.

There was a rise in the popularity of small development sites at the sales, which mixed lots geographically across both days instead of the usual format of a northern-focused second day.

It sold nine residential development sites, which were bought by small local developers at good prices. A notable example was lot 268, a site in Maidstone, which was sold for £430,000 – well above its guide price.

There was also increased demand for regulated tenancy investment lots – 50 were sold on a yield-based interest and security of income basis.

The strong sales accompanied the largest monthly leap in house prices in six years. Halifax reported that during May prices rose by 2.6% – adding weight to the argument that the bottom of the housing market had been reached.

Murphy said: ‘There seems to be a growing consensus that house prices are no longer falling – many believe that they are increasing. This is being reflected in the room. A lot of potential buyers went away disappointed because prices were moving significantly above the reserves. There was definitely a mood of recovery in the room.’

This was best illustrated by lot 41, which had a guide price of between £400,000 and £450,000, but sold for £600,000 to an owner-occupier.

Andrews & Robertson also noted an improvement at its sale at the New Connaught Rooms in London last Thursday. Its sales rate increased by four percentage points to 72% and the total raised soared 60% to £17.1m, as it offered 43 more lots than it did in March.

Robin Cripp, auctioneer and owner of Andrews & Robertson, said: ‘The room was packed and we got some incredible prices for some of the vacant lots – including two with squatters who showed people around. We also sold a couple of development sites at good prices, whereas six months ago you couldn’t give them away.’

The most notable sale of the day was lot 39, a block in Balham, south London, anchored by a Sainsbury’s Local, which sold for £4.35m.

http://www.propertyweek.com/story.asp?sect...3142649&c=1

When sqautters show the prospective buyers around, and it still sells for an "incredible price", you may have to seriously re-evaluate your expectations for what little is left of the crash.

[Slumpmonkey Returns]

That's what I keep telling these loser bears every day Hanish me old mate but they never listen. Still, they will be laughing on the other side of their faces when they see price rises again in a few moths! Ha, Ha, Ha!

Green shoots.............WIBBLE................Green Shoots.............WIBBLE........

P.S = Where's Valerius, I though he agreed to log on now when we did?

[Driver]

So 200 out of the 369 sales were forced sales by the lenders but because only 50 of these were called "repossessions" this is good news?

[Guest DissipatedYouthIsValuable]

[pie-eater]

A VI ramping?

Must get that X5 on my credit card NOW; my HPI will cover it.

[the flying pig]

super, super news.

i'm a homeowner... so this must make me richer. i couldn't be happier about that.

[Slumpmonkey Returns]

The bears may mock us Hamish but you and I know that this article comes from a most respected source! Why would a publication called "Property Week" seek to talk up the market? I just can't understand the mindset of bears on here. They have lost and we have won, why can't they just accept it - it's just not fair! :

Green shoots...................WIBBLE.................Green shoots...........etc

[Now or never]

Whohoo - that's it; confirmed 'normailty' from an an auctioneer, i feel now is the time to convert.

[kilroy]

The bears may mock us Hamish but you and I know that this article comes from a most respected source! Why would a publication called "Property Week" seek to talk up the market? I just can't understand the mindset of bears on here. They have lost and we have won, why can't they just accept it - it's just not fair! :

Green shoots...................WIBBLE.................Green shoots...........etc

The cost of government borrowing will stay low forever thus the government can afford to stop banks repossessing ad infinitum

[Diskobox]

http://www.propertyweek.com/story.asp?sect...3142649&c=1

When sqautters show the prospective buyers around, and it still sells for an "incredible price", you may have to seriously re-evaluate your expectations for what little is left of the crash.

Open your piggy little Scottish eyes wake up and smell the cheap Scottish blended whisky you smug idiot. Ramp all you want and bring VI friends along, you have arrived at the best rave ever when everyone else is on a comedown from hell.......

[Slumpmonkey Returns]

Open your piggy little Scottish eyes wake up and smell the cheap Scottish blended whisky you smug idiot. Ramp all you want and bring VI friends along, you have arrived at the best rave ever when everyone else is on a comedown from hell.......

Leave Hamish alone! Valerius, you were supposed to help us out, I can't troll on my own here!

[Total_Injustice]

http://www.propertyweek.com/story.asp?sect...3142649&c=1

When sqautters show the prospective buyers around, and it still sells for an "incredible price", you may have to seriously re-evaluate your expectations for what little is left of the crash.

As a Bear I hate to say it but the 'Master Plan' is working.

This all started with too much hidden debt, the unknown presented too much risk and lending seized up.

The sh1t hits the fan and public money is hosed at the problem. The result is that the hidden debt is replaced by state owned debt, which is far more palatable.

Interest rates kept low and money is printed to directly support house prices. Now the far east have got us where they want us, and the west has whored itself to the highest bidder.

So, short of the rug being pulled out from under the Governments of the west, our Government will return us to 2007. Lending reform is dead - the nation wants a return to the good old days and that's just what they'll get.

House prices are the key to 'the recovery' they will not be allowed to plummet. Our taxes will effectively be paying the mortgages of all those 'rescued' over the past few months, and those on 0.5% interest rates, and all those who buy in the future.

[Valerius]

As a Bear I hate to say it but the 'Master Plan' is working.

This all started with too much hidden debt, the unknown presented too much risk and lending seized up.

The sh1t hits the fan and public money is hosed at the problem. The result is that the hidden debt is replaced by state owned debt, which is far more palatable.

Interest rates kept low and money is printed to directly support house prices. Now the far east have got us where they want us, and the west has whored itself to the highest bidder.

So, short of the rug being pulled out from under the Governments of the west, our Government will return us to 2007. Lending reform is dead - the nation wants a return to the good old days and that's just what they'll get.

House prices are the key to 'the recovery' they will not be allowed to plummet. Our taxes will effectively be paying the mortgages of all those 'rescued' over the past few months, and those on 0.5% interest rates, and all those who buy in the future.

We must all now thank Gordon for a job well done.

[threetimesdead]

http://www.propertyweek.com/story.asp?sect...3142649&c=1

When sqautters show the prospective buyers around, and it still sells for an "incredible price", you may have to seriously re-evaluate your expectations for what little is left of the crash.

From the same page a bit that you did not post:

"

Some people will always follow the herd and help to create either small artificial booms or big ones. The recent hype and rush has been caused by a limited supply of properties and media advice to get in before higher interest rates come. However rates are now going up today and I am sure we will look back on this time as the suckers' rally. The economic fundamentals are still the grim same: higher unemployment, wage cuts, short time working; high national debt (which will lead to higher interest rates on mortgages courtesy of the bond market); and higher taxes, coming together with cuts in public spending. If you don't believe this is the dead cat bounce take a look at the USA. Their queasing has already resulted in the bond market requiring higher interest rates to service riskier national debt and houses are already falling in value again since mortgage rates have had to rise because of bond market rates."

[Total_Injustice]

We must all now thank Gordon for a job well done.

That is why I am a bear and you are a bull.

You've gone bear baiting and caught me...

I would rather feed my testicles through a hand mincer then ever pass a word of thanks regarding the actions of Mr Brown.

[HAMISH_MCTAVISH]

From the same page a bit that you did not post:

"

Some people will always follow the herd and help to create either small artificial booms or big ones. The recent hype and rush has been caused by a limited supply of properties and media advice to get in before higher interest rates come. However rates are now going up today and I am sure we will look back on this time as the suckers' rally. The economic fundamentals are still the grim same: higher unemployment, wage cuts, short time working; high national debt (which will lead to higher interest rates on mortgages courtesy of the bond market); and higher taxes, coming together with cuts in public spending. If you don't believe this is the dead cat bounce take a look at the USA. Their queasing has already resulted in the bond market requiring higher interest rates to service riskier national debt and houses are already falling in value again since mortgage rates have had to rise because of bond market rates."

Why would I post a bunch of HPC-ers comments? I can get that here. Guess that one was yours.

[abharrisson]

It would be just a teensy weensy bit amusing if Hamish etc did turn out to be right, and all the uber bears had to put their little income vs house price ratio charts and rush down to their local agents and see if theres anything suitable available.

It doesn't really bother me either way.. personally I think prices will keep falling to a degree, but imagine the scale of outrage if they don't.

[Total_Injustice]

It would be just a teensy weensy bit amusing if Hamish etc did turn out to be right, and all the uber bears had to put their little income vs house price ratio charts and rush down to their local agents and see if theres anything suitable available.

It doesn't really bother me either way.. personally I think prices will keep falling to a degree, but imagine the scale of outrage if they don't.

I think you should have said joy not outrage. This country deserves itself.

Yes the HPC forum would self destruct but it would be a beautiful summer for the abundant debt junkies.

[kilroy]

I think you should have said joy not outrage. This country deserves itself.

Yes the HPC forum would self destruct but it would be a beautiful summer for the abundant debt junkies.

until about 3 year's after

[Dead Spider]

This was best illustrated by lot 41, which had a guide price of between £400,000 and £450,000, but sold for £600,000 to an owner-occupier.

What they don't tell you is that , in the same block of terraces , no.45 sold for £660 in July '08 , No.65 sold for £649 in Aug'07 .

So I wonder where they got the guide price of to >£450 from ?

http://www.houseprices.co.uk/e.php?q=45%2C...E1+8TB&n=10

http://www.houseprices.co.uk/e.php?q=65%2C...E1+8SS&n=10

[Slumpmonkey Returns]

It would be just a teensy weensy bit amusing if Hamish etc did turn out to be right, and all the uber bears had to put their little income vs house price ratio charts and rush down to their local agents and see if theres anything suitable available.

It doesn't really bother me either way.. personally I think prices will keep falling to a degree, but imagine the scale of outrage if they don't.

I know, us bulls would piss ourselves laughing wouldn't we Hamish? That would be WELL funny!

[Mammon]

HPC was stopped when interest rates were cut to near 0%.

I cant see a major rise in interest rates before the economy recovers, at which point people will want to get back into property in a big way.

We would have seen national average index falls of 30 to 33% had rates remained at 5%.

But the 20 to 25% falls we saw are probably all we will get for this down leg of the housing cycle.

What we saw was more House Price Correction than House Price Crash.

[pie-eater]

HPC was stopped when interest rates were cut to near 0%.

I cant see a major rise in interest rates before the economy recovers, at which point people will want to get back into property in a big way.

We would have seen national average index falls of 30 to 33% had rates remained at 5%.

But the 20 to 25% falls we saw are probably all we will get for this down leg of the housing cycle.

What we saw was more House Price Correction than House Price Crash.

Yeah, cos the current interest rate will be here forever, along with UE rates.

Neither will rise anytime soon

[Total_Injustice]

until about 3 year's after

Until there is true leadership, and consideration of the social impact of high house prices, we will never move forward.

[Slumpmonkey Returns]

HPC was stopped when interest rates were cut to near 0%.

I cant see a major rise in interest rates before the economy recovers, at which point people will want to get back into property in a big way.

We would have seen national average index falls of 30 to 33% had rates remained at 5%.

But the 20 to 25% falls we saw are probably all we will get for this down leg of the housing cycle.

What we saw was more House Price Correction than House Price Crash.

Thank God you've shown up! It was just Val, Hamish and me holding the fort for a bit there! How was work today? It was quite quiet at the Coventry branch but I hear Dan (Birmingham) managed to get some nob First Time Buyer involved in a bidding war!