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Ash4781

Rightmove - Broken Market?

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Lots of spin on the rightmove release.

I've not read the actual report just some of the news articles. From what I can gather stock is really increasing now. Shipside speaks of a broken market and the volume problems. Quite political or throwing dolls out of the pram?

Reuters-

http://www.reuters.com/article/idUSLDE64C1G420100516

I read this odd source rentman and thought oh dear!

edit:added quote

A surge of new sellers coming to the market and a crippling of demand due to the mortgage drought has led to agents being stuck with more unsold properties.

This morning, Rightmove reported a ?sharp? rise in unsold stock, whilst across the country, asking prices rose just 0.7% over the last month.In London, the surge of stock means there are double the number of new properties on the market compared with this time last year ? 4,170 as opposed to 2,110. In London, asking prices fell slightly, by 0.4%, compared with April prices.Miles Shipside, commercial director of Rightmove, said: ?Potential buyers remain in a difficult position.? He said they were being ?marginalised? by lenders continuing to demand large deposits and high credit worthiness.He said first-time buyers and property investors were ?particular casualties of the finance famine?.

Calling the housing market broken, Shipside said that rising stock levels and rising house prices made for unhappy bedfellows. ?We are seeing signs that the relationship is under increasing stress,? he said.

He said of the imbalance between sellers and purchasers: ?The market has to either operate at reduced sales volumes or hope that sellers can sell to each other, forming circular chains by trading up and down. This is a much more inefficient model, with less chance of sales success and longer lead-times.?

While new stock levels remained low, this inefficient market was able to maintain prices as long as supply broadly matched demand. With more sellers now marketing, this uneasy equilibrium is in danger of becoming unbalanced. There aren?t enough ready-and-able buyers to soak up a surge in fresh stock.?

Over the last month, Rightmove has been recording in excess of 30,000 new listings a week. The last time this happened was in the week starting June 28, 2008.It puts the amount of unsold stock per agency branch at 71.

However, it would appear that asking prices have a very long way indeed to fall. The average asking price on Rightmove is £237,134. But according to Halifax, the actual average selling price is £168,202 and according to Nationwide it is £167,802.

Edited by Ash4781

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The market has to either operate at reduced sales volumes or hope that sellers can sell to each other

I just love this quote. The ultimate ponzi game in its dying moments.

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The whole thing is just an absolute joke.

We are still seeing EAs value houses at ridiculous sums up here in W.Yorkshire. One came up today for £500K (half a million!) and it is a four-bed, detached-by-a-kitten's-whisker, house with no garden fronting a busy A road thirty miles away from any viable business hub. It is probably a house suitable for a local GP or something, and I very much doubt they will spend that kind of money.

These places just won't sell. They are not just overpriced now; they are la-la-land priced.

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That is some bearish article from Reuters. I wonder if we will get a report, along these lines, from the bbc?

Regarding the section below, that is a big difference between average asking, and average selling prices. I wonder if this means properties are now only selling if they go for a price well below their asking price, or if it means that there are fewer of the larger more expensive properties selling, than the cheaper ones?

However, it would appear that asking prices have a very long way indeed to fall. The average asking price on Rightmove is £237,134. But according to Halifax, the actual average selling price is £168,202 and according to Nationwide it is £167,802.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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