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Right Move Down 0.6%


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This is excellent! Asking prices is a good sentiment indicator and this shows a big swing. Sold prices can only fall by greater than 0.6% in July as people won't be paying over the asking price. London second biggest faller at -1.7% who says London and the south east won't be effected?

Full report not available yet but will be here: http://www.rightmove.co.uk/news/house-price-index

July 19 (Bloomberg) -- U.K. home sellers cut prices for the first time this year in July and will probably keep doing so for the remainder of 2010, Rightmove Plc said.

Asking prices fell 0.6 percent to 236,332 pounds ($364,708) and will drop 7 percent in the second half, wiping out gains so far this year, the operator of the nation’s biggest property website said in a statement in London today. In the U.K. capital, the cost of a home dropped 1.7 percent, led by Kensington and Chelsea, its most expensive district.

Government budget cuts to curb the record deficit have spooked consumers and sent Nationwide Building Society’s gauge of confidence to its lowest in a year. Tighter lending rules and a supply glut may also restrain home-price inflation as about 30,000 new homes come onto the market every week, almost three times the number of mortgages granted, Rightmove said.

“Estate agents are suffering from podgy portfolios, and buyers’ fitness to purchase is in correspondingly poor shape,” Rightmove Commercial Director Miles Shipside said in the statement. “With agents beginning to choke on a surfeit of new stock, sellers are going to have to price at bargain levels.”

The monthly drop in asking prices in July was the first since December. From a year earlier, prices rose 3.7 percent, down from a 5 percent annual pace in June, Rightmove said.

London Falling

In London, prices fell 1.7 percent on the month to 422,248 pounds, with drops recorded in 29 of the capital’s 32 districts. Kensington and Chelsea, where prices fell 5.2 percent, remains the most expensive location, and the average home price of 1.82 million pounds there is almost nine times more than in the city’s cheapest area, Barking and Dagenham. The capital’s only gains were in Hounslow, Richmond-upon-Thames, and Islington.

London’s monthly decline was the second-biggest in Britain after East Anglia. The West Midlands, where prices are less than half the average in the capital, had the largest gain, with a 2.8 percent increase.

The annual rate of home-price inflation in the capital slowed to 4.8 percent from 8.2 percent. Rightmove said there is a “continuing mismatch” between supply and demand.

The supply of new properties for sale in the capital surged 67 percent in July from a year earlier. Nationally, the number of homes on the market rose 45 percent.

London-based Capital Economics said in a report last week that the U.K. housing market had a “false dawn” last year and prices may decline through 2012. The group sees values dropping 5 percent in 2010 and 10 percent in each of the next two years.

While the Bank of England has cut its benchmark interest rate to a record low of 0.5 percent, “affordability remains far less favorable than following previous house-price corrections,” Capital Economics said.

More consumers also see home prices declining. Some 54 percent of people surveyed by Rightmove for its consumer confidence survey due in August expect prices to be the same or lower in 12 months, the company said, citing early responses. That’s up from 44 percent in an April survey.

http://www.businessweek.com/news/2010-07-18/u-k-home-asking-prices-fell-in-july-for-first-time-this-year.html

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Rightmove is asking prices so doesn't mean much, it only mean sellers are slightly reducing their completely unrealistic prices to slightly less unrealistic prices.

actually, more importantly, its the EAs that are getting the message...they need turnover....SSTCs swapping back and forth with different buyers dropping out, chains failing, does them no good at all.

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There some nice headlines coming out on this one.

UK House Prices Collapse in July. http://www.moneyavenue.co.uk/news/house-prices/uk-house-prices-collapse-in-july-443.html

House Prices Fall As Owners Rush To Sell. http://www.dailymail.co.uk/news/article-1295806/House-prices-fall-flood-owners-rush-sell.html?ito=feeds-newsxml

Edited by Pent Up
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How come house prices either 'soar' or 'collapse'?

0.6 is welcome, but can hardly be described as a collapse!

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In case you missed this bit Miles Shipside said '' sellers are going to have to price at bargain levels ''.

Shipside has been trying to talk prices down for some time.

Of all the commercial interests publishing data, Shipside has the least vested interest in talking the market either up or down. Just an (indirect) interest in his clients, the estate agents, staying in business. Even a move from selling to renting or vice versa is neutral: RM benefits from both. When he talks prices [somewhere], there's a strong chance it's a leading indicator for EA sentiment.

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How come house prices either 'soar' or 'collapse'?

0.6 is welcome, but can hardly be described as a collapse!

Because it has to be sensationalist. 'House prices drop slightly' won't bring in the readers. We slate them for their blatant spin, but now it's out turn to reap the rewards of shoddy reporting and ridiculous headlines

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This is the news I've been expecting - but only just the start. RM only publishes stats on new instructions and doesn't account for price reductions.

After seeing asking prices of houses stuck on the market since March/April being reduced10-15%, the estate agents are beginning getting the message through to new sellers. They still have a long way to go to catch up with the reality that sellers who have been on the market for 3-4 months are feeling.

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I see the Daily Mail didn't bother to check rightmove's wrong figures.....they printed that the average house price is £23,300, and will fall by £14,000 BY THE END OF THE YEAR.............Fill yer boots!

SHocking journalism from the WAIL......

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full report

· New sellers drop asking prices for the first time this year, down by 0.6% (£1,435)

· Over 30,000 properties coming to market a week, up by 45% compared to July last year

· Latest Rightmove Consumer Confidence Survey indicates faltering home-mover sentiment

· Number of unsold homes per agent jumps by almost 25% in the first half of the year as new

sellers outnumber new mortgage approvals by 5:2

· Rightmove forecasts that sellers’ average first half price gains of 7% will disappear by year-end

I know Rightmove is a flawed survey, but this is still good bear food.

Edited by Constable
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Rightmove is asking prices so doesn't mean much, it only mean sellers are slightly reducing their completely unrealistic prices to slightly less unrealistic prices.

I agree. Its going to be a case of creeping reality for the sellers. Denial, anger and then acceptance.

I am seeing it now in my area where houses formerly on for the mid to high 200's and dropping below the stamp tax threshold--and still sticking.

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I see the Daily Mail didn't bother to check rightmove's wrong figures.....they printed that the average house price is £23,300, and will fall by £14,000 BY THE END OF THE YEAR.............Fill yer boots!

SHocking journalism from the WAIL......

In my part of the world those silly figures could become reality!

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Historically the Rightmove HPI(C?) graph is all over the place.

Would love to read more into this but I'm not sure it counts for so much.

Agreed, this is just noise.

It is however very bearish noise, to add to the rest of the bearish news currently emanating from the MSM.

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In my part of the world those silly figures could become reality!

even then..MOST people couldnt pay cash and many would need a mortgage over 2 times salary.

Edited by Bloo Loo
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