BufferBear Bitcoin Bull Posted November 5, 2009 Share Posted November 5, 2009 http://www.ftadviser.com/FinancialAdviser/Mortgages/News/article/20091105/1735118e-c3b6-11de-b1d4-00144f2af8e8/House-price-index-continues-to-rise.jsp House price index continues to rise Story by: Catherine Couch Magazine: FinancialAdviser Published Thursday , November 05, 2009 The average price of a house was £158,377 in September, according to data from the Land Registry. The Land Registry's House Price Index showed a rising market with a monthly house price change of 0.9 per cent, up from 0.5 per cent in August. The annual drop of 5.6 per cent, up from a low of minus 16.3 per cent in February, takes the average house price in England and Wales to £158,377, according to the index. London experienced the greatest monthly price rise with a movement of 1.3 per cent, making the average property price in the capital almost double the national average at £314,954. The index also showed that all regions experienced a decrease in their average property values in the last 12 months. David Whittaker, managing director of buy-to-let specialist Mortgages For Business, said: "This is yet another indicator showing the housing market in recovery but we should not be getting over-excited. "Increasing prices create the need for larger mortgages and with lending criteria as tight as they are this will rule out more people trying to secure a mortgage. Of course this means more people will have to remain in the private rental sector which is great news for landlords. But lenders still owe the taxpayer a huge amount for providing a rod for their backs when times were tough, the least they can do is begin to return the favour and support the recovery." Paul Hunt, managing director of Phoebus Software, said: "This is good news and sits nicely with the findings from Nationwide. Last month it reported prices were up for the fifth month in succession." Quote Link to comment Share on other sites More sharing options...
BufferBear Bitcoin Bull Posted November 5, 2009 Author Share Posted November 5, 2009 http://www.ftadviser.com/FinancialAdviser/Mortgages/News/article/20091105/1735118e-c3b6-11de-b1d4-00144f2af8e8/House-price-index-continues-to-rise.jsp House price index continues to rise Story by: Catherine Couch Magazine: FinancialAdviser Published Thursday , November 05, 2009 The average price of a house was £158,377 in September, according to data from the Land Registry. The Land Registry's House Price Index showed a rising market with a monthly house price change of 0.9 per cent, up from 0.5 per cent in August. The annual drop of 5.6 per cent, up from a low of minus 16.3 per cent in February, takes the average house price in England and Wales to £158,377, according to the index. London experienced the greatest monthly price rise with a movement of 1.3 per cent, making the average property price in the capital almost double the national average at £314,954. The index also showed that all regions experienced a decrease in their average property values in the last 12 months. David Whittaker, managing director of buy-to-let specialist Mortgages For Business, said: "This is yet another indicator showing the housing market in recovery but we should not be getting over-excited. "Increasing prices create the need for larger mortgages and with lending criteria as tight as they are this will rule out more people trying to secure a mortgage. Of course this means more people will have to remain in the private rental sector which is great news for landlords. But lenders still owe the taxpayer a huge amount for providing a rod for their backs when times were tough, the least they can do is begin to return the favour and support the recovery." Paul Hunt, managing director of Phoebus Software, said: "This is good news and sits nicely with the findings from Nationwide. Last month it reported prices were up for the fifth month in succession." Quote Link to comment Share on other sites More sharing options...
BufferBear Bitcoin Bull Posted November 5, 2009 Author Share Posted November 5, 2009 (edited) Gosh, at this rate you guys will think that I have 'turned' and become a bull. Apologies for the multiple posts!! http://www.ftadviser.com/FinancialAdviser/Mortgages/News/article/20091105/1735118e-c3b6-11de-b1d4-00144f2af8e8/House-price-index-continues-to-rise.jsp House price index continues to rise Story by: Catherine Couch Magazine: FinancialAdviser Published Thursday , November 05, 2009 The average price of a house was £158,377 in September, according to data from the Land Registry. The Land Registry's House Price Index showed a rising market with a monthly house price change of 0.9 per cent, up from 0.5 per cent in August. The annual drop of 5.6 per cent, up from a low of minus 16.3 per cent in February, takes the average house price in England and Wales to £158,377, according to the index. London experienced the greatest monthly price rise with a movement of 1.3 per cent, making the average property price in the capital almost double the national average at £314,954. The index also showed that all regions experienced a decrease in their average property values in the last 12 months. David Whittaker, managing director of buy-to-let specialist Mortgages For Business, said: "This is yet another indicator showing the housing market in recovery but we should not be getting over-excited. "Increasing prices create the need for larger mortgages and with lending criteria as tight as they are this will rule out more people trying to secure a mortgage. Of course this means more people will have to remain in the private rental sector which is great news for landlords. But lenders still owe the taxpayer a huge amount for providing a rod for their backs when times were tough, the least they can do is begin to return the favour and support the recovery." Paul Hunt, managing director of Phoebus Software, said: "This is good news and sits nicely with the findings from Nationwide. Last month it reported prices were up for the fifth month in succession." Edited November 5, 2009 by Buffer Bear Quote Link to comment Share on other sites More sharing options...
Little Professor Posted November 5, 2009 Share Posted November 5, 2009 (edited) http://www.ftadviser...ues-to-rise.jsp Old news, buddy - these figures were release over a week ago: http://www.guardian....e-land-registry Edited November 5, 2009 by Little Professor Quote Link to comment Share on other sites More sharing options...
Timm Posted November 5, 2009 Share Posted November 5, 2009 As posted in detail [well, with graphs*] when I was predicting a bull trap back in late winter on the other side, -5% YoY for the LR will mark the start of renewed monthly falls in the non lagging indexes. *the graphs have been lost as that site dies, but the posts are still there. Quote Link to comment Share on other sites More sharing options...
spivT Posted November 5, 2009 Share Posted November 5, 2009 David Whittaker, managing director of buy-to-let specialist Mortgages For Business, said: "This is yet another indicator showing the housing market in recovery but we should not be getting over-excited. here we go again. another VI tempering their excitement. "Increasing prices create the need for larger mortgages and with lending criteria as tight as they are this will rule out more people trying to secure a mortgage. Of course this means more people will have to remain in the private rental sector which is great news for landlords. But lenders still owe the taxpayer a huge amount for providing a rod for their backs when times were tough, the least they can do is begin to return the favour and support the recovery." translated as: prices can only go up from here. plus, the cheek of this VI comedian lecturing the banks about the bailout from public funds. Ignoring the obvious govt. funded bailout of BTL speculators. :angry: It's as ridiculous as me saying that the least landlords should do is reduce rents in light of their gain from low interest rates and the favourable taxation situation on mortgage interest. Quote Link to comment Share on other sites More sharing options...
blue skies Posted November 5, 2009 Share Posted November 5, 2009 This Bloke bet that there was going to be a property crash , but the government has stoped it. now he has to pay the bet he made! KEENSIAN ECONOMICS by Steve Keen RSS feed Posted 5 Nov 2009 10:31 AM It's the leverage, stupid So I'm walking to Kosciusko – now that the ABS Established House Price Index has cracked its September 2008 peak of 131 to reach an all-time high of 134.4 (as of September one year later). This renewed bubble reversed the trend of falling nominal house prices that had dropped the index to a low of 123.8 in March 2009. This level of price volatility – down 5.5 per cent in six months, only to rise 8.5 per cent in the subsequent six months – almost matches the stock market's manic-depressive performance. click the image to enlarge Though you'd see no mention of it if it you only read Chris Joye (Keen concedes defeat), the main factor behind the revival of the bubble is what is formally known as the First Home Owners Boost (FHOB), but more accurately described as the First Home Vendors Boost. As at the end of September – the date of the latest ABS house price data – 171,000 applicants had received this $7,000 bribe. Since many are couples, more than 1 per cent of Australia's population has leapt into the property market pool at the behest of a government stimulus. So, how has a mere $1.2 billion injection of government money driven the average house price up by 8 per cent in six months? By the 'magic' of leverage: the typical First Home Buyer (FHB) took that $7,000 to the bank and leveraged it up to another $40-50,000, which then was handed over to the First Home Vendor (FHV) as cold, hard cash. The FHV then took that extra $40-50,000 and leveraged it to an additional $200,000-$250,000, which meant that that new place which had been just out of reach prior to the FHOB was now well within range. Competing with other lucky recipients of government and bank largesse, he drove up the price of that middle to upper tier house by an additional $100,000 or more. The aggregate impact of this government enticement into private debt was that Australian households reversed the deleveraging process that had begun in late 2008, and as a result the mortgage debt to GDP ratio, which had been falling, began to rise once more. The FHOB has led to Australians taking on an additional $50 billion of mortgage debt. That 'demand' factor, far more than any other, is why I've lost the second half of Rory's bet with me. click the image to enlarge Normally I regard the 'ceteris paribus' assumption of conventional economic theory as a cop-out – in a market economy everything is connected to everything else, and you can't assume that, for example, a firm's output can change without affecting the market price. But I think I'm entitled to ask the 'ceteris paribus' question here: what would have happened to house prices had the government not spiked the market with the FHVB? I somehow doubt that Rory would be crowing today had that irresponsible policy move not been made. click the image to enlarge In fact, there's a good argument that we wouldn't be having a property bubble here at all, were it not for the FHB policy. I'm not one for making arguments solely on statistical correlations – I'm only too aware of the 'correlation isn't causation' argument – but I think I can also spot a smoking gun when I see one. click the image to enlarge Prior to the FHB, though real house prices were rising, so was real household disposable income. Then add two dollops of the FHB – one its introduction as a 'temporary' measure to get us over the shock of the GST in 2000, the other its doubling to boost the economy during the brief 2001 recession – and off go real house prices relative to real household disposable income. Last year, as the market starts to head back towards parity between house prices and incomes again, Rudd throws in another temporary doubling (of this temporary measure that is now almost a decade old), and off goes the house price bubble once more. In the main, I've been a critic of banking practices as the underlying cause of the global financial crisis. But I also believe that the crisis would have occurred long ago (in 1987) and been far less severe if governments and central banks hadn't attempted to rescue the system from its own follies. The FHOB is a classic government folly, and its doubling last year is the main reason I'll be walking to Kosciusko some time in April 2010. Quote Link to comment Share on other sites More sharing options...
boo Posted November 5, 2009 Share Posted November 5, 2009 So the guy who has a company providing btl mortgages says lenders should support the recovery. Is he suggesting that banks loosen their criteria and start lending higher salary multiples and 95% mortgages. Its like the whole credit crunch and bank collapse never happened. They get a whiff of "recovery" and their memories fail Quote Link to comment Share on other sites More sharing options...
Jason Posted November 5, 2009 Share Posted November 5, 2009 This data was released on 28th Oct! Quote Link to comment Share on other sites More sharing options...
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