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Are House Prices Rising Again?

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If so then what are we going to do about it?

http://propertytalklive.co.uk/housing-mark...property-growth

Assetz House Price Watch shows property growth

Tuesday, 30 June 2009 12:10 Sam Collins News - Housing Market User Rating: / 0

PoorBest

Property prices are rising again according to the latest Assetz House Price Watch.

It identifies 17.3% annualised growth in May 2009, compared to the peak loss rate of -22.5% in Dec 2008.

In addition, prices are only down 0.7% in 2009 to date and up 1.1% in May alone.

The average UK house price now stands at £185,276, only marginally lower than in Jan 2009 (£185,392).

Assetz said the bottom of the curve had passed. Distressed property prices stopped falling some months ago but now, as expected, the mainstream market was now experiencing the same recovery.

Buyers holding out for the bottom have the market may have missed the prime buying opportunity and should aim to buy in the next few months while interest rates remain low and before asking prices rise too steeply.

The stagnation of the development industry has severely restricted the flow of new properties and with developer finance constrained it could take years for new build starts to recover. This will worsen the supply/demand imbalance which will support strong price growth over the next five to ten years.

The rate of house price growth fell back for the first time between the summer of 2004 and 2005. At this time it went close to a 0% annual rate of growth, before shooting up again until late 2007. We have since had a substantial market correction which is now reaching an end, and Assetz said it expected house prices to continue growing positively on a monthly basis for the remainder of the year.

First-time buyers have a higher average wage than the UK average as a whole - £35k vs £25k, and they also buy lower cost properties – around £120k rather than the £185k national average. Therefore, mortgages are around three times earning again, which is very affordable, even more so at current mortage rates.

Stuart Law, Chief Executive of Assetz, said: "All indicators now suggest that we have passed the bottom of the house price curve. While we can't read too much into one set of figures alone, all the major indices and the recent RICS survey are all indicating an end to falling prices and an increase in activity.

"Extreme supply limitations and the recent introduction of some interesting new first-time buyer mortgage products will help support market recovery and it is likely we will see a flurry of higher loan to value rates released as soon as it is widely recognised that the market has stabilised and the risk to the banking sector of further housing equity losses has diminished.

"I believe that my original prediction of -5% price falls for the whole of 2009, although at the most positive end of commentators’ projections, is now looking too pesimistic. I expect to see a return to positive year-to-date growth for 2009 by the end of the summer, with an overall growth of around 5% or greater. We expect further sustained recovery in 2010 with concerns over the effect of further job losses overstated in the face of current housing market conditions."

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I'm ringing Assetzzzz first thing in the morning.

I best buy before it's too late. Do you get that feeling that the market is moving out your reach again :lol:

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I'm absolutely so unphased by any headlines or info that tells me I've missed the bottom of the market and house prices are rising again. Prices rise during a fall, it's normal.

Every single economica factor points towards the fact that house prices are going to crash back on their **** anytime soon. Probably when Wimbledons finished, the suns gone away and people realise the UK economy is well and truly fecked.

Bovvvered. Nope.

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Asshats

Change your signature FFS as there no need for that animated crap let alone 2 clips which are all over the internetz anyway and have been for years. :rolleyes:

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Change your signature FFS as there no need for that animated crap let alone 2 clips which are all over the internetz anyway and have been for years. :rolleyes:

Says you?

The sig you have has been around since the turn of the century...

111111111111469598.jpg

Edited by Kazuya

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28th April 2008

Figures from the latest Assetz House Price Watch*, which analyses data from the five main house price indices, suggests that the market is in fact flattening, and not dramatically falling as reported by some.

House prices are down just 0.1% since the end of 2007

The average house price in March 2008 was down just 1.5% since the peak in October 2007

Three month average prices for annualised house price growth have actually bounced back since the start of the year

Moving averages suggest market is flat-lining

Between January and March 2008, the average house price was £212,141, representing a marginal 0.66% fall compared to the three month average price for October to December 2007, which was £213,551. More importantly the three monthly average house prices for January through to February are virtually flat.

Stuart Law, Chief Executive of Assetz comments:

“Whilst headline annual rates of house price growth are slowing, it is the short term data over the last few months that shows how robust the housing market is proving in 2008. Our analysis of average monthly prices across the main house price indices, combined with averaging these across the prior three months, takes out all of the volatility and statistical errors that are evident in the monthly data announced by the main indices.

“Three monthly average house prices paint a much clearer picture of market performance and reveal that average annual price growth has now flat-lined at around 0%, with no significant decline having taken place.

“Despite the current climate, house prices in March were down just 1.5% since their peak in October last year and just £217 since the end of last year – when you take these factors into consideration, the situation is far from bleak and could be even be called robust given the great pressure from the more limited mortgage market at present.

“As I have been stating for some time now, the housing market is very unlikely to crash. The fundamental economics of supply and demand support this – the Government has made it clear we need to build 240,000 new homes per year up to 2016 to meet current targets but in reality, today’s housebuilders are building no-where near this target. In fact, a fall, as opposed to an increase, in new starts is expected over the next two years.

“Only last week one major housebuilder announced that it plans to hold starts on all new sites until the mortgage market improves. With this in mind, the lack of supply looks set to worsen – fundamentally helping to support and even increase house prices.

“At the start of 2008 I predicted 5% house price growth for 2008 and with the current data in mind, I still stand by this, albeit with some significant uncertainty introduced over the questionable ability of the Banks, the Government, the Bank of England and the FSA to resolve the mortgage market problems in an efficient and timely manner.â€

http://news.assetz.co.uk/articles/4152.html

There are about 150 more of these articles, leading all the awy up into and during the crash, all from assetz. Just search Google.

Anyone can set up a website and talk shit, or say stuff like "> Are House Prices Rising Again?, Has anyone considered this man might be right?"

And this was in April 2008 after fast falls, still no change on the message.

Edited by Tom Peters

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Comparing the two is great

28th April 2008

“At the start of 2008 I predicted 5% house price growth for 2008 and with the current data in mind, I still stand by this, albeit with some significant uncertainty introduced over the questionable ability of the Banks, the Government, the Bank of England and the FSA to resolve the mortgage market problems in an efficient and timely manner.â€

30 June 2009

"I believe that my original prediction of -5% price falls for the whole of 2009, although at the most positive end of commentators’ projections, is now looking too pesimistic. I expect to see a return to positive year-to-date growth for 2009 by the end of the summer, with an overall growth of around 5% or greater. We expect further sustained recovery in 2010 with concerns over the effect of further job losses overstated in the face of current housing market conditions."

:lol:

Edited by Tom Peters

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Compaing the two is great

28th April 2008

“At the start of 2008 I predicted 5% house price growth for 2008 and with the current data in mind, I still stand by this, albeit with some significant uncertainty introduced over the questionable ability of the Banks, the Government, the Bank of England and the FSA to resolve the mortgage market problems in an efficient and timely manner.â€

30 June 2009

"I believe that my original prediction of -5% price falls for the whole of 2009, although at the most positive end of commentators’ projections, is now looking too pesimistic. I expect to see a return to positive year-to-date growth for 2009 by the end of the summer, with an overall growth of around 5% or greater. We expect further sustained recovery in 2010 with concerns over the effect of further job losses overstated in the face of current housing market conditions."

:lol:

Stuart Law ! :lol::lol::lol:

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