Rightmove Hpi April 2010 Up 2.6%

[Pent Up]

http://www.rightmove.co.uk/news/files/2010/04/april-2010-house-price-index-2.pdf

Don't forget these are asking prices. It does show the increased supply we have all been seeing.

Does anyone know if this takes price reductions into account?

[neon tetra]

I believe this is initial asking prices.

Though I am unsure how it handles the case where Estate Agents take a house off the market and reintroduce it at a lower price...

[aa3]

Every percent up gives the banks big breathing room incase of default.

[TheEmperorHasNoClothes]

Every percent up gives the banks big breathing room incase of default.

Nice idea but what about widespread default? Think 1990s

[TheEmperorHasNoClothes]

Every percent up gives the banks big breathing room incase of default.

Nice idea but what about widespread default? Think 1990s

[pete.hpc]

What a luvverly pair of spring bouncers !

Who cares, we'll get a true picture of where we're going after the election, we're truly in the twilight zone at the moment

Gordon has thrown hundreds of billions at keeping the housing market propped up, let's not forget that come polling day

[Pent Up]

I think this is one of the most unreliable indexes. Asking prices don't mean much. Also it's very erratic over the past few months. I prefer the haliwide indexes although there was an article in the times recently calling then meaningless at such low volumes a couple of weeks ago.

I does confirm the increase in supply we have all been seeing though. It suppose this will take a few weeks to feed through into sales prices and even longer for asking prices.

[dnjc]

http://www.rightmove.co.uk/news/files/2010/04/april-2010-house-price-index-2.pdf

Don't forget these are asking prices. It does show the increased supply we have all been seeing.

Does anyone know if this takes price reductions into account?

Is anybody feeling like me about this - 'am i bofered!?- NO. Figures are all over the place, just not got the volumes to make sense of any of them.

[interestrateripoff]

Is this house price recovery locked in yet?

Exponential house price growth is what I want to see.

[Bloo Loo]

Is this house price recovery locked in yet?

Exponential house price growth is what I want to see.

sellers want more debt...thats welf you see.

4 on recently around here, eyewatering asking, no traffic light boards....just...FOR SALE.

[porca misèria]

Only 2.6%?

I've seen a recent spate of vastly higher asking prices: £295k for a place that a couple of months ago would've carried a £195k asking price. Seems like only some of the houses coming onto RMV are for real.

[Realistbear]

There are reasons for sellers to expect high prices:

1. There has hitherto been a shortage of supply

2. Brown has predicted a return to growth if he is elected

3. The correction ended a year ago and now that the banks are back in the business of debt creation there is plenty of money to buy houses

4. Its Spring time and the sun is shining

There are reasons why such euphoria is the stuff that belongs in the fool's paradise:

1. House prices are still overvalued in relation to rentable values, incomes and pay rises

2. The UK has not yet had a significant correction and we are still in a bubble

3. The economy is not returning to growth

4. The realities of post-election cuts will mean higher unemployment

5. RICS are reporting excess supply in relation to registered buyers

http://www.bloomberg.com/apps/news?pid=20601102&sid=aKy1fCXVwaUY

“We forecast overall property supply will continue to rise,” Miles Shipside, commercial director of Rightmove, said in the statement. “If asking prices continue to rise, all but the most popular locations are building themselves up for some of the gains to be lost later in the year.”

Edited April 19, 2010 by Realistbear

[Houses_Burning]

I don't really take much notice of the rightmove house price index as it just proves how much denial people are in. The publishing of today's index is is most likely very good news for Gordon Brown as some short sighted people will read the headlines and think it is back to business as usual, hence he may earn a few more votes out of this.

[fadeaway]

asking prices

Says it all.

[brocken spectre]

I was looking at houses in my area NW London in 2007.The same houses coming back on +50k!!

still won't buy one.

BS

[olliegog]

There are reasons for sellers to expect high prices:

1. There has hitherto been a shortage of supply

2. Brown has predicted a return to growth if he is elected

3. The correction ended a year ago and now that the banks are back in the business of debt creation there is plenty of money to buy houses

4. Its Spring time and the sun is shining

have to agree wholeheartedly.

Having sold my house STC for a 2004 level price - I have been scouring RM for a new home - there are properties that have been on over a year with no price reduction! others that are finally becoming a bit more realistic by dropping a few grand and the vast majority of 'new properties' on the market are priced at very ambitious prices. I have tried a low ball offer only to be rejected out of hand although I am in a good position to buy. Cannot wait for the day of reckoning for these greedy s**s when they realise they will not walk away with ' mega-profits' from a house they bought for peanuts 20 years ago! end of rant

[Timm]

The affluence of purchasers seeking to buy in a particular location remains the decisive factor.

Miles Shipside, commercial director of Rightmove comments: "Rarer property types in desirable locations are

achieving record prices. For 'location, location, location' you can also read 'cash, cash, cash'. Conversely, in areas where buyers have less access to cash or mortgage finance, or there is an over-supply of a certain property type, then sellers are having to price much more aggressively to secure a sale. There is increasing divergence between these different markets, with agents reporting some pockets where a couple of viewings find a cash-rich buyer, whereas a few miles down the road it's taking over 20 viewings to achieve a sale".

Pretty much what we have been saying for a while. Edited April 19, 2010 by Timm

[Tired of Waiting]

Nice idea but what about widespread default? Think 1990s

Most new mortgages have a low loan to value. This way the lender is reasonably protected. In case of default, the lender repossesses the property, and have all or most of their money back.

[Cherubium]

I was looking at houses in my area NW London in 2007.The same houses coming back on +50k!!

still won't buy one.

BS

You're not wrong. But you can get a distorted picture by flipping through Rightmove simply because overpriced stuff sits while well priced properties often sell in days or weeks.

For instance, there's a road where I live in N19 and a house that's been on and off the market for almost 2 years. First at 1.15m and now at 995k, but in the meantime, three other houses in that street have been marketed and sold (as far as I can tell) with asking prices 750k, 825k and 950k (this one a much bigger house).

But 90% of people looking on Rightmove in the past year would only have seen the overpriced one. You also get this all the time when you see prices on Rightmove, but then look at sold prices and see that they're way above what anyone has ever paid in that street.

[pete.hpc]

Let's remember, just a few months ago the point was made that Gordon was going all out to get the housing indexes positive ahead of the election

He's put everything into this to get re-elected, it should be no surprise that all the indexes have turned

The housing crash is still in motion, the indexes are simply responding to billions of our future tax that's been gambled on a Labour election victory. They are the party of runaway HPI

[MinceBalls]

I think someboby on here once called the Rightmove asking price index "the Denial Index".

I think that's quite good in certain circumstances.

Absolutely. We must remember that if we get what we wish for - more supply - then initially at least people are going to ask for more because they have been told by said gov that we are back to normal.

Rightmove do not release figures about the overall AVERAGE movement of their listings and only release figures about the initial asking price which is not surprisingly up due to 'expectations'

[Bloo Loo]

Most new mortgages have a low loan to value. This way the lender is reasonably protected. In case of default, the lender repossesses the property, and have all or most of their money back.

thats right, AND the CML say the everage income to loan is under 3.

course it is.

Im convinced.

[pie-eater]

A house at the top of my street has been for sale since Dec 2008.

They recently increased their asking price from £299950 to £365000. Smart move.

Still for sale, oddly enough.

[PopGun]

This summer will be interesting.

However the reality is unless we have successive MoM falls by the end of the year, then we have to start accepting that this is no bull trap. It will also mean that us bears have lost.

[NEO72]

This summer will be interesting.

However the reality is unless we have successive MoM falls by the end of the year, then we have to start accepting that this is no bull trap. It will also mean that us bears have lost.

You can defy market fundamentals short-term but at some point the dam will break.

e.g. I could loose my job but carry on living the same lifestyle for a while - to observers it would seem nothing has changed. But then one day the baliffs will come a knocking...