Jump to content
House Price Crash Forum
Sign in to follow this  
Dave Beans

Housing Market "subdued"

Recommended Posts

http://www.independent.co.uk/life-style/house-and-home/property/housing-market-subdued-2112727.html

The housing market remained subdued during September with falls in both sales levels and mortgage approvals for people buying a home, figures showed today.

The number of homes changing hands fell for the second month in a row as potential buyers continued to stay away from the market.

Around 78,000 properties worth more than £40,000 were sold during September, well down on pre-credit crunch levels for the month of more than 120,000, according to HM Revenue & Customs.

Activity in the housing market looks set to remain muted going forward, with lenders reporting a further drop in the number of mortgages that were approved for house purchase during September.

The Bank of England's Trends in Lending report showed that mortgage approvals for house purchases by the major lenders had fallen back to a 17-month low of 44,000 in September, down from 45,000 in August.

Lenders blamed the fall on a "weakening in confidence" among potential buyers, due to expectations that house prices may fall again, as well as uncertainty about the impact of government spending cuts.

Going forward, most major lenders expect activity in the market to remain subdued, with approvals for house purchase likely to remain broadly unchanged, or even fall further.

The housing market has failed to benefit from its traditional summer bounce this year, as potential buyers have adopted a "wait and see" approach.

But sellers have continued to return to the market, creating a mismatch between supply and demand, leading to downward pressure on prices.

Halifax reported that house prices fell by a record 3.6% during September, and some economists have predicted that property will lose 10% of its value between now and the end of 2011.

But most lenders expect house prices to remain broadly unchanged or decline only slightly during the coming year.

Howard Archer, chief UK and European economist at IHS Global Insight, said: "This is yet further evidence of very weak housing market activity and reinforces our suspicion that house prices are likely to trend down over the final months of 2010 and in 2011 to lose around 10% in value."

He said the economic fundamentals remained unfavourable, while there was also low consumer confidence and persistent tight credit conditions.

He added that the balance of supply and demand had now moved in favour of buyers.

Share this post


Link to post
Share on other sites

Thursday, October 21, 2010 Previous editions

Ireland:Most places will have a fine and dry day with sunny spells. Most places will have a fine and dry day »

Share

National price of houses hits 2002 levels

By Conall O Fátharta

Thursday, October 21, 2010

AVERAGE national house prices are at 2002 levels, falling by a further 1.3% in the third quarter of 2010.

a d v e r t i s e m e n t

Click here to find out more!

The latest permanent tsb/ESRI house price index shows that house prices have fallen 36% since the peak at the end of 2006.

Last quarter’s fall of 1.3% is the lowest quarterly reduction since the second quarter of 2008 (April-June inclusive) and compares to a reduction in the second quarter of this year of 1.7%.

The fall in average national house prices in the first nine months of this year was 7.6%. This compares with a fall of 11.7% in the first nine months of last year.

The year-on-year decline (quarter three 2009 to quarter three 2010) was 14.8% and compares to a reduction of 17% year-on-year to the second quarter of 2010.

The average price for a house nationally in the third quarter of this year has fallen below €200,000 to €198,689, compared with €233,137 in the third quarter of last year and €311,078 at their peak.

Commenting on the figures, general manager with Permanent tsb Niall O’Grady said it might be too early to say house prices had reached the bottom.

"This is the second successive quarter indicating that the pace of decline in house prices is easing. However, as the market remains very quiet, it may be premature to conclude that we have reached the bottom of the cycle just yet," he said.

Dublin house prices fell by 1.2% in the third quarter of 2010. This compares with a reduction in the second quarter of 3.5% and a reduction of 10.3% in the first quarter of this year.

The reduction in the first nine months of 2010 was 14.6%, and compares with 17.2% in the same period 2009. The year-on-year decline in Dublin (quarter three 2009 to quarter three 2010) was 21% and compares with a reduction of 24.6% year-on-year to the second quarter of this year. The average price for a Dublin house in the third quarter of 2010 was €238,986, compared with €242,000 in the second quarter

House prices outside Dublin fell by 1.2% in the third quarter of this year. This compares to a reduction in the second quarter of 0.8% and a reduction of 3.5% in the first quarter of 2010.

The reduction in the first nine months of 2010 was 5.4%, and compares with 10% in the same period 2009. The year on year decline Outside Dublin (quarter three 2009 to quarter three 2010) was 11.2% and compares with a reduction of 14% year-on-year to the second quarter of 2010.

This story appeared in the printed version of the Irish Examiner Thursday, October 21, 2010

Read more: http://www.examiner.ie/ireland/national-price-of-houses-hits-2002-levels-134092.html#ixzz12zbVsOQ8

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.