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Homes Shortage Set To Push Up Property Prices

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http://business.timesonline.co.uk/tol/busi...icle6703035.ece

July 14, 2009

Homes shortage set to push up property prices

But estate agents say that the lack of finance for new buyers could hamper a recovery in the housing market

Property values are set to rise in the next three months as a lack of homes props up prices, estate agents believe.

The number of agents expecting house prices to increase in the coming months outnumber those predicting further falls for the first time since May 2007, according to figures published today by the Royal Institution of Chartered Surveyors (RICS).

There are also signs that activity in the market is picking up, with the average number of sales completed by each estate agent branch rising to 12.7 in the three months to June, up from 11.7 in May.

Interest from buyers rose at a record rate in June, agents said.

In a further boost for the economy, high street retailers have reported a bumper June as the heatwave boosted demand for summer food, shoes and clothes.

Like-for-like sales rose by 1.4 per cent in the year to June, figures from the British Retail Consortium show.

However, the shine was taken off such positive figures by a leading policymaker, who said that while the economy probably had hit rock bottom, the recovery would be a “long haulâ€.

Charlie Bean, deputy governor of the Bank of England, also highlighted uncertainties in the property market, where buyers are still struggling to obtain mortgages.

He said: “It’ll take some time before banks feel in a position to lend more money.â€

An influential committee of MPs, meanwhile, said that the Treasury’s scheme to boost mortgage lending was “doomed to failâ€.

The Communities and Local Government Select Committee said that lack of mortgage finance was a contributing factor in the lack of activity in the housing market, but it said that the Treasury’s Asset-backed Guarantee Scheme (ABS) was not enough.

Estate agents also sounded concerns that the lack of finance for new buyers could hamper a recovery in the market.

Jeremy Leaf, a RICS spokesman, said: “It is unlikely that there will be a sustained upturn while mortgage lenders remain risk averse.â€

Excellent article, so we have estate agents claiming a property shortage will push up prices and then they admit that might not happen because the banks won't lend.

I bet that doesn't stop them trying to push up the asking price.

For me so far this is the most hilarious article of the day.

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Property values are set to rise in the next three months as a lack of homes props up prices, estate agents want you to believe.

Sorry but I thought I'd better add in the words the Times forgot to mention!

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Guest KingCharles1st

Well here's an idea-

Get some fu ck off big fields- dig em up- put proper houses on the bastards- allocate plots to SMALL conscientious builders ONLY

money to the farmer

money to the builders- which will filter through to their labourers and families

cheap houses that are now being built for the right money because everybody is just trying to SURVIVE

shortage (******) solved - so bloody easy

Wonder why it hasn't been done-- oh yeah- I remember now :rolleyes:

And guess what- the punter who CAN afford to buy, will choose the sensibly priced house over the ridiculously priced flat EVERY TIME- therefore kicking the one beds and flats and maisonettes back to the Curb- where they belong at 35-40K

Edited by KingCharles1st

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Property values are set to rise in the next three months as a lack of homes props up prices, estate agents want you to believe.

Sorry but I thought I'd better add in the words the Times forgot to mention!

Probably why the NAEA reported yesterday:

The average estate agent sold 9.5 properties during June, a slight fall from the 10.4 reported in May

There was a slight fall in the number of prospective buyers registered with estate agents

After several months of continuous improvement the market stabilised in June, ahead of an expected seasonal dip throughout the summer, added Mr Smith.

However, the body said the number of properties up for sale remains at a low level, with the average estate agent having only 64 homes on their books in June, down from 69 the previous month and the lowest number in over two years.

The only difference being that the 64 homes are the same ones that have been on their books for a year!!

First Rung said recently :

First Rung:

UK house prices (asking) have stopped their recent 'dead cat bounce' according to Miles Shipside and his team at Rightmove. Estate agents now have on average seventy properties each on their books, and are only selling ten per month according to RICS...

However, this RICS contention is not supported by recorded data. With only 35,000 property sales a month, according to Land Registry, and the head count of agents being circa the same this would suggest that agents are in fact only selling on average one property per month

.

Rigtmove said in their June HPI

A large rump of less saleable stock remains, with average stock per estate agency branch remaining

stubbornly consistent at just over 70 for the last six months. We would normally expect this to fall, given

the lack of new stock coming to market, and the pick-up in sales and mortgage approval figures. This

confirms reports that fresh stock of the right type is saleable if priced correctly.

Or as another article put this:

Stock volumes remain high despite stock shortage

Agency stock remains at an average of 70 properties for the sixth consecutive month, according to Rightmove.

THEY JUST DON'T GET IT DO THEY!!

Property has fallen 20% meaning a £300000 property should now be £240000

A £250000 should now be £200000

If we are to believe Rightmove /Savills / Rics and others property is now being valued and selling at 30% off peak or:

£300000 now £2100000

£250000 now £175000

So why on earth are we being told daily HOUSE PRICES ARE GOING BACK UP , when everyone knows the funding just will not allow that to happen .

An article today said we would be lucky (or unlucky), to see property back at 2007 values by 2020.

Edited by Sybil13

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Less housing number churn more problems for construction trades.

You would have thought by now that even the pillocks at the Bankrupt of England would have worked out that this bubble has been entirely damaging and counter-productive, but no they want more lending.

Still, good time to shut down and offshore more production and service jobs.

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None of it has to make sense.

Just keep the pressure on.

Force the peasants to buy.

Squeeze them until they sign.

Keep the foul system going.

Happiness just around the corner.

Rats in the maze.

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There's no lack of houses for sale. This is easily demonstratable by going to rightmove, typing in a postcode and selecting "houses", of which you will find many.

However, virtually none of these will be priced at a level a buyer can afford.

So reduce prices and there won't be a lack of houses people can afford

I mean, it's really not rocket science is it <_<

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ESTATE AGENTS HAVE BEEN RECORDING THE AVERAGE NUMBER OF PROPERTIES FOR SALE PER ESTATE AGENT SINCE 1978

THE LOWEST NUMBER ON RECORD WAS IN AUGUST 1979 WHICH WAS 51.5 PROPERTIES PER ESTATE AGENT.

IN THE MID 90'S RECESSION OF LAST DECADE IT WAS 140 TO 200 PROPERTIES PER ESTATE AGENT

THE CURRENT LEVEL IN MAY 2009 WAS 58.4 PROPERTIES PER AGENT AND IF WE HAVE HAD A FLURRY OF ACTIVITY SURELY THIS MUST HAVE GONE DOWN?

PEOPLE STILL KEEP DIVORCING, DIEING AND GETTING INTO DEBT.

THE ELDERLY GET NO INCOME FROM SAVINGS SO MUST DOWNSIZE.

PEOPLE NEED TO MOVE TO BE WITH FAMILY, FIND NEW JOBS, LEAVE COUNTRY ETC.

THE PRESSURE ON PEOPLE TO SELL THEIR PROPERTIES IS ALWAYS THERE, SURELY REALISM THAT PROPRTIES PRICES MUST SURELY FALL, WITH EMPLOYMENT AT A 14 YEAR HIGH AND GROWING MUST PENETRATE THE THICKEST SKULLS

tHE ESTATE AGENTS WILL HAVE TO WORK ON THEIR UNREALISTIC SELLERS TO DROP PRICES OR STARVE!

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