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Reuters Reports House Prices Unchanged In June...

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LONDON (Reuters) - The annual fall in house prices in England and Wales slowed for a third successive month in June after rising demand outpaced the supply of homes for sale, property data company Hometrack said in its monthly survey on Monday.

House prices are now 8.7 percent lower than a year ago, compared to 9.6 percent lower in May. Hometrack's non-seasonally adjusted monthly figures have shown house prices static for the past two months, possibly benefiting from a seasonal rise in demand.

The percentage of their asking price which sellers achieved rose to 91.0 percent from 90.3 percent, its highest in a year, and the number of sales agreed and potential buyers also rose, though more slowly than in May.

"A lack of supply and rising demand have combined to prop up house prices in the last two months. Over the last six months, the volume of buyers has grown by 36 percent, this compared to a 6.4 percent increase in the number of homes for sale," said Richard Donnell, director of research at Hometrack.

But overall transaction levels and the number of new homes coming on to the market are still well below average, with new property listings up just 0.8 percent on the month after a 0.2 percent decline in May.

Surveys by the major mortgage lenders Halifax and Nationwide show overall house prices are around 15-20 percent lower than their peak in the second half of 2007.

Donnell said it was unclear if the increased sales momentum would last through the year, when seasonal demand tends to fall.

"Given the uncertain outlook for the economy it is the demand side where the greatest risk lies as many would-be buyers continue to remain cautious or are unable to obtain sufficient equity or finance to access the market," Donnell said.

http://uk.reuters.com/article/idUKTRE55R2HY20090628

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And from citywire.....

House prices were unchanged again in June as falling supply and rising demand helped to support prices, while other indicators further fuelled hope that the market is recovering, Hometrack’s survey shows.

'A lack of supply and rising demand have combined to prop up house prices in the last 2 months,' said Richard Donnell, director of research at Hometrack.

He said the volume of buyers has grown by 36% in the last six months, substantially more than the 6.4% increase in the number of homes for sale.

In London, the problem is particularly acute as demand for housing has risen 52% - almost ten times faster than the growth in the supply of homes for sale ( up 5.6%).

But while prices remained flat, the survey seemed to reinforce the view that the increasing number of enquiries is being translated into higher - although still low - sales volumes.

Volumes rose for the fifth consecutive month, up 4.6%.

'Since the start of the year sales have risen by over 80%, albeit off a very low base,' said Donnell.

Indeed there is a growing divide between forecasters about whether or not house prices have troughed. Some still predict falls of 10% or more are possible before we hit the bottom, while others suggest prices will stabilise sometime during the autumn and only have only a few per cent more to fall.

The conflict stems from beliefs that rising defaults and unemployment combined with rising interest rates will drag prices lower on one hand and a belief that improving confidence and more affordable prices will keep demand levels high on the other side of the fence.

Edited by HAMISH_MCTAVISH

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No-one can stop the recovereh.

Holy sh1t! Harold Shipman lives!

Been on holiday mush?

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"A lack of supply and rising demand have combined to prop up house prices in the last two months.

He he he .... you can laugh now Hamish but later this year it will be a case of 'A lack of DEMAND and rising SUPPLY' :lol:

You've had your spring period of 'seasonal stability' which is now over ,as everything is now in place for the next leg down

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Holy sh1t! Harold Shipman lives!

Been on holiday mush?

I'm on the bus to Rhodes. Just passing through Faliraki.

Literally empty.

Going to see the castle and inns of the Knight Hospitallers of St John.

Interesting history. From protecting Jerusalem from the 'infidels' in the 600s to a gradual

retreat via Rhodes and Malta to providing volunteer first aid at fetes (St John's Ambulance)

Eaten my first prickly pear.

Off to see the Valley of the Butterflies and look at some ostriches later.

Walked and climbed over the mountains from Pefkos to Lindos yesterday, lots of wild oregano and 'bloody spikeweed'

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I'm on the bus to Rhodes. Just passing through Faliraki.

Literally empty.

Going to see the castle and inns of the Knight Hospitallers of St John.

Interesting history. From protecting Jerusalem from the 'infidels' in the 600s to a gradual

retreat via Rhodes and Malta to providing volunteer first aid at fetes (St John's Ambulance)

Eaten my first prickly pear.

Off to see the Valley of the Butterflies and look at some ostriches later.

Walked and climbed over the mountains from Pefkos to Lindos yesterday, lots of wild oregano and 'bloody spikeweed'

What was the pear like?

Nice one, you are well travelled, so you are. It's a good life.

I'm still working on that Porto job, watering the plants and talking sh1te on here as usual Little changes.

Oh, butterflies! I've got these little tree things that attract them. Had loads around. Massive ones too, size of small brids, I'll get the camera ready next time.

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So provided no-one tries to sell anything prices won't fall. Excellent. My Rover is still worth £20k then.

The fact is that if the usual number of people tried to sell there would be little demand at current prices. Prices would fall significantly. Still, if all these sellers want to put their lives on hold because they won't sell for 'less than its worth', they are entitled to do so.

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Not Reuters, It's Hometrack

This figure doesnt matter.

My benchmark, is the average of Halifax and Nationwide,

which I expect to stay below resistance near £160,000 in this current dying Dead Cat bounce

/see: http://www.greenenergyinvestors.com/index.php?showtopic=6925

I don't think theres any such thing as a "resistance" level as complicated and as slow moving as the housing market.

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I don't think theres any such thing as a "resistance" level as complicated and as slow moving as the housing market.

Right. Remember those houses in the likes of Manchester and Liverpool changing hands for a grand last time round?

My family were developers. Real ones. Back in the eighties. Used to turn whole streets of derelict stuff into flats. I know the muscle market and the bulls on this site often have me in absolute stitches.

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Oh dear - I predicted rises this month....

Recovereh going worse than I thought :lol::lol:

This is going to be a very miserable seconf half of the years for the bulls.

I bags me some prime beef cuts!!!

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Oh dear - I predicted rises this month....

Recovereh going worse than I thought :lol::lol:

This is going to be a very miserable seconf half of the years for the bulls.

I bags me some prime beef cuts!!!

This thing has years to run.

Quite why anyone wishes for such inflation and subsequent absence of affordability in a basic human need such as shelter is beyond me.

Have to agree with Bubb that this is that 'return to normal' phase before the big plunge.

(Yikes! I'm talking about house prices! :ph34r:)

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He he he .... you can laugh now Hamish but later this year it will be a case of 'A lack of DEMAND and rising SUPPLY' :lol:

You've had your spring period of 'seasonal stability' which is now over ,as everything is now in place for the next leg down

But if the Telegraph is correct in their analysis that Interest Rates will stay at 0.5% for 5 years then the next leg down may be a long time coming...

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But if the Telegraph is correct in their analysis that Interest Rates will stay at 0.5% for 5 years then the next leg down may be a long time coming...

What kind of interest rates, where do you have that rate even at the moment pls?

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Hang on a sec... May 2008 the house prices were down 0.5% (http://www.hometrack.co.uk/commentary-and-analysis/house-price-survey/20080528.cfm), so half of the "decrease in house price falls" is down to may 2008 figures falling out of the sample, not to prices increasing in june 2009 (although, of course, they did increase somewhat).

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Hamish, do you not feel any sense of responsibility for any prospective home buyers that you might be influencing through your constant ramping?

I mean, let's just say for argument's sake that what you suggest (heaven forbid) is wrong and that house prices fall off a cliff in the near future. Some people who listen to your side of the argument will lose their hard earned deposits and find themselves in homes that are deeply in negative equity, not being able to sell/move on.

Do you have no concerns at all or any sense of culpability for what you're preaching? Just thought I'd ask seeing as most people seem to have given up arguing with you now and any newbie thinking of taking on a huge mortgage having a look round this site for advice might stumble across one of your countless threads/posts and think, yep he's right.

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Hamish, do you not feel any sense of responsibility for any prospective home buyers that you might be influencing through your constant ramping?

I mean, let's just say for argument's sake that what you suggest (heaven forbid) is wrong and that house prices fall off a cliff in the near future. Some people who listen to your side of the argument will lose their hard earned deposits and find themselves in homes that are deeply in negative equity, not being able to sell/move on.

Do you have no concerns at all or any sense of culpability for what you're preaching? Just thought I'd ask seeing as most people seem to have given up arguing with you now and any newbie thinking of taking on a huge mortgage having a look round this site for advice might stumble across one of your countless threads/posts and think, yep he's right.

Nah it's "It's fark you Jock, I'm alright" with him and his sort. Pure unadulterated self-interest.

The moral high ground bears forever hold is that what we espouse eventually benefits all society not just the lucky few.

Yuck. Icky small-minded Little Scotlanders. I'm off to the pub.

(Perhaps I'll be lucky enough to see The McGlashan, aka The McAntiMcTavish, down there).

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Some people who listen to your side of the argument....

There is a problem with "argument". Hamish has premises, not arguments: wanting is enough, renting is waste (rather than prudence); affordability does not matter, neither does the ability to pay and the general state of economy. Because government will help. And the government's revenues grow on trees, rather than being taxes on an economy that is in depression, i.e. contracting. Not a probleem - Hamish would probably propose higher taxes on capitalists (people with net capital, not debt) to redistribute wealth, which he does not see as a complete waste that will impoverish poor even more instead of creating real "green shoots" through investments of those who hold that capital. I remember him one night opposing to taxes, but then I don't get how the govy can prop up anything down the line the last step being helicopters that will be dropping banknotes on high street.

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Hamish, do you not feel any sense of responsibility for any prospective home buyers that you might be influencing through your constant ramping?

I mean, let's just say for argument's sake that what you suggest (heaven forbid) is wrong and that house prices fall off a cliff in the near future. Some people who listen to your side of the argument will lose their hard earned deposits and find themselves in homes that are deeply in negative equity, not being able to sell/move on.

Do you have no concerns at all or any sense of culpability for what you're preaching? Just thought I'd ask seeing as most people seem to have given up arguing with you now and any newbie thinking of taking on a huge mortgage having a look round this site for advice might stumble across one of your countless threads/posts and think, yep he's right.

Amazing.

I've repeatedly argued for the benefits of wating for a crash to play out rather than purchasing in the middle of one.

I've specifically advised numerous new members against purchasing now, and that has been my consistent position since I joined this site.

I have, hundreds of times, and in every prognostication I've ever made, stated that prices will fall next winter, and that this bounce is most probably a blip.

And I have only recently changed my opinion of a 35% fall from peak, to a 25-28% fall from peak, given the latest data, and acknowledged that correspondingly, prices early next year may be within a few percent of last february prices, but markedly lower than today.

And somehow, 2400 posts of this managed to go right over your head.

Absolutely amazing.

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Nah it's "It's fark you Jock, I'm alright" with him and his sort. Pure unadulterated self-interest.

The moral high ground bears forever hold is that what we espouse eventually benefits all society not just the lucky few.

What a load of horsesh1t. You want someone else to lose so you can gain. You have no more moral high ground than I do.

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