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House Prices Starting To Fall, Say Surveyors


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HOLA441

http://www.bbc.co.uk/news/business-10915210

House prices are starting to fall, the latest survey by the Royal Institution of Chartered Surveyors (Rics) has said.

It is the first time since July last year that its monthly survey has detected a downturn in prices.

Rics said this was because more homes were being put up for sale, while enquiries from potential new buyers had fallen for the second month in a row.

Buyers are still finding it hard to get a mortgage, while fear of unemployment is putting off others, Rics added.

"The fall in the Rics house price measure is broadly consistent with most other recent data that has been released," said Rics spokesman Ian Perry.

"Significantly, the forward-looking price expectations numbers suggest that this softer trend will continue through the second half of the year.

"However, agents are still generally optimistic about sales activity, which should benefit from more realistic pricing of properties," he added.

'Prices to fall'

The survey was based on questions to only 242 surveyors around the UK, who also work as estate agents, but the Rics report has traditionally had its finger on the pulse of the property market.

While 64% of those surveyed had not seen any change in local house prices during the preceding three months, those who had seen rises - 11% - were outnumbered by the 25% who had seen prices drop.

Recent surveys from both the Halifax and the Nationwide have also shown that the upturn in house prices, which started in the spring of 2009, has been cooling off.

That rise had been driven largely by a shortage of homes being put up for sale, but now the balance of supply and demand has reversed.

Rics said its members expect the downward pressure on prices to continue.

"Expectations for house price increases have also turned negative, with 28% more surveyors expecting prices to fall over the coming months," Rics said.

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HOLA442

http://www.independent.co.uk/news/business/news/property-prices-will-drop-for-the-next-two-years-surveyors-warn-2048043.html

Property prices will drop for the next two years, surveyors warn

A fall in house prices later this year and in 2011 is becoming increasingly likely, according to the latest survey of the property market from the Royal Institution of Chartered Surveyors.

The RICS's July poll of estate agents found more members saying that prices were falling than rising – the first time the index has turned negative since June last year. In contrast, last month saw 8 per cent more surveyors reporting improvements.

As a rule of thumb, the net negative reading of minus 8 the RICS publishes today is consistent with slippage in prices of about 2 or 3 per cent for the second half of this year, leaving prices up very slightly or flat on 2009.

............

The RICS survey also reveals a stark difference in fortunes across the UK. In London and Scotland the probability is for a small improvement in house values but in the rest of the country there are much more serious falls. The situation appears to be especially dire across the Midlands and Wales.

Full article at above link.

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HOLA445

Just thought I'd post something on-topic for a change..

Buyers are still finding it hard to get a mortgage, while fear of unemployment is putting off others, Rics added.

"The fall in the Rics house price measure is broadly consistent with most other recent data that has been released," said Rics spokesman Ian Perry.

"Significantly, the forward-looking price expectations numbers suggest that this softer trend will continue through the second half of the year.

"However, agents are still generally optimistic about sales activity, which should benefit from more realistic pricing of properties," he added.

MORE HERE BBC LINK

Edited by libspero
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HOLA446

Can't wait for the report to be released at 11am. Here's another article from the wail

http://www.dailymail.co.uk/news/article-1301740/House-price-fall-fuels-fears-double-dip-recession.html?ito=feeds-newsxml

Here's the best bit. Must be from the members comments section.

Jeremy Dell, of JJ Dell & Company, Oswestry, Shropshire, said: ‘For me the market is the worst it’s ever been. ‘The government’s determination to balance the books has undermined confidence.’

Edited by Pent Up
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HOLA449

Has anyone seen the report on BBC1?

It was so so confused. It acted almost like an advert for EAs, including a smug EA boasting about how he's actually managed to sell a place! The Presenters and Aaron seem a bit more negative thankfully!

Apartently they're going a bit about BTL at 0740ish

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HOLA4410

It still hurts to say that prices are falling though, doesn't it:

..still, it beats "increases are easing" heard previously.

The link is entitled "House prices fall" and begins "House prices are starting to fall"

I had to check the website address to make sure it did say BBC. RICS will be fuming at the BBC for using the F word instead of soft, easing or not rising as much.

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HOLA4411

......a bit like announcing Spring as Autumn approaches....these guys are on the ball..... :rolleyes:

Breakfast is running the piece with that 'happy' Australian jollying about interviewing an agent who showed him a house that not long ago would have been £20k more and unsurprising the house had generated interest and had an offer they were considering but things a slowing down. It was a BBC classic of it is down but it is up piece.

It was followed by another piece with a representative from RICS who said prices are flat, then falling, then flat, then falling but it does not matter they always go up on the long term.

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HOLA4413

And in typical BBC fashion...

The survey was based on questions to only 242 surveyors around the UK, who also work as estate agents, but the Rics report has traditionally had its finger on the pulse of the property market.

(so don't read too much into it because 242 is a very small sample isn't it? Although RICS is usually right so at least bear it in mind...)

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HOLA4414

Has anyone seen the report on BBC1?

It was so so confused. It acted almost like an advert for EAs, including a smug EA boasting about how he's actually managed to sell a place! The Presenters and Aaron seem a bit more negative thankfully!

Apartently they're going a bit about BTL at 0740ish

Thanks for the tip. I'm going to grab myself some cereal and pretend it's popcorn.

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HOLA4416

Has anyone seen the report on BBC1?

It was so so confused. It acted almost like an advert for EAs, including a smug EA boasting about how he's actually managed to sell a place! The Presenters and Aaron seem a bit more negative thankfully!

Apartently they're going a bit about BTL at 0740ish

On now!

http://www.bbc.co.uk/bbcone/watchlive/

Edit: But they're on a street that's "bucking the trend" and talking to a group of VIs. Good ol' BBC.

Edited by GordonBrownSpentMyFuture
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HOLA4417

It's the lead on the front page of The Times today:

'Housing market stalls as economy stutters'.

1st and 2nd paras; 'New properties flooded on to the housing market last month at the second fastest rate in a decade while the number of house hunters waned.

Estate agents said that property values would be hit by the toxic combination of a surge in sellers scrambling to cash in on recent price rises and a scarcity of buyers as new extrants struggle to find mortgage finance.'

And inside there's another virtually full page article, 'Glut will hit prices, homeowners warned.'

+ it was an item on R4 Today at around 7.30.

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HOLA4421

And in typical BBC fashion...

(so don't read too much into it because 242 is a very small sample isn't it? Although RICS is usually right so at least bear it in mind...)

You know, I used to think the bbc bias thing was a bit tinfoil hat...but come on, have they EVER mentioned sample size when its going the other way?

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HOLA4424

Can't wait for the report to be released at 11am. Here's another article from the wail

http://www.dailymail.co.uk/news/article-1301740/House-price-fall-fuels-fears-double-dip-recession.html?ito=feeds-newsxml

Here's the best bit. Must be from the members comments section.

Martin from Bristol has the right idea. He seems to think that interest rates are, uh, a tax, with government keeping the proceeds from higher rates at the expense of hard working debt monkeys...

Why is it that when the government/banks want some money ''TRADITIONALLY'' interest rates rise on mortgages to drum up cash ??? ( of course we are told that it is to keep inflation down. '''Uumm eerrr that old chestnut eh !!! )

Why should someone who buys a house have to prop up the economy ???

Mortgage interest rates should be KEPT low for ever to encourage people to buy rather than expect the government to supply housing.

If cash is needed why can't we have a sliding VAT rate to drum up cash, this way EVERYONE will be contributing AND have sliding RENTS on COUNCIL/SOCIAL HOUSES.

It is about time that the whole mortgage prosses was re-assest for the better. I don't see why anyone with a mortgage should be held accountable for the economy.

Read more: http://www.dailymail.co.uk/news/article-1301740/House-price-fall-fuels-fears-double-dip-recession.html?ito=feeds-newsxml#ixzz0wBZzrCNz

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