Jump to content
House Price Crash Forum
AvidFan

Stalled Auctions Herald 2011 House Price Falls

Recommended Posts

http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=521083

Stalled auctions herald 2011 house price falls

By Andrew Oxlade

12 January 2011

The prices of properties sold at auction slumped in December heralding falls for the wider market, according to a financial forecaster.

An index, due to be published later today, will show the discount between homes under the hammer and the wider market was 26% last month, widening sharply from 20% in November.

The Zoopla Auction Price Index is compiled with economic forecaster Fathom Consulting, and aims to forewarn of wider market moves by tracking activity at auctions.

Its accuracy in doing so has yet to be proved but it has made some correct calls in recent years, most notably plunging to 40% several months before the wider market hit rock bottom in March 2009.

Fathom now warns that the weak reading is close to when the collapse of the American investment bank Lehman Brothers sent financial markets into turmoil in September 2008.

'The sample size in December was unusually large, giving us a high degree of confidence in this new reading,' said Andrew Brigden, senior economist at Fathom Financial Consulting. 'We have not seen such a large discount, in a month where there was a good number of auction sales, since late 2008-early 2009, in the aftermath of the collapse of Lehmans.

'We expect to see bigger falls in house prices, as measured by the lenders' indices, as we move into the New Year. If the reading on the Fathom/Zoopla API remains close to its current level, then a double-digit fall in house prices through 2011 is on the cards.' Yesterday, an index published by Halifax, the UK's largest mortgage lender, revealed house prices fell 1.3% in December and were down 3.4% over the whole of 2010.

Meanwhile Capital Economics, which has been regularly warning of property busts since 2000, predicted a fall of 10% for 2011.

I wonder if there's a graph someone could post against annual HPI...?

Edited by AvidFan

Share this post


Link to post
Share on other sites

I posted this article this morning. Good news. they say that there index points to a 10% decline this year. Although looking at that graphs it doesn't seem much of a leading indicator.

Share this post


Link to post
Share on other sites

I posted this article this morning. Good news. they say that there index points to a 10% decline this year. Although looking at that graphs it doesn't seem much of a leading indicator.

Apologies. Post the link here or get it merged. Didn't see it in the forum for some reason.

Share this post


Link to post
Share on other sites

http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=521083

Stalled auctions herald 2011 house price falls

By Andrew Oxlade

12 January 2011

I wonder if there's a graph someone could post against annual HPI...?

I have to say i have never had so many emails from auction houses with auction date reminders as i have had in the last couple of weeks, and the catalogues are not even out at that.

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 309 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.