Pole Posted January 17, 2011 Share Posted January 17, 2011 (edited) http://uk.reuters.com/article/idUKTRE70G00320110117 A drop in the number of new homes coming onto the market helped property asking prices rise in January for the first time in three months, property website Rightmove said on Monday. However January's 0.3 percent rise was tiny in comparison with the declines seen in the final two months of last year. Asking prices fell 3.0 percent in the month of December and 3.2 percent in November. Moreover, the figures are not seasonally adjusted and January typically sees a bounce back in prices after falls in the run-up to Christmas, when few people want to move house. As such, the survey will do little to boost spirits in a market where mortgages are being rationed to only the safest of buyers. Year-on-year prices are up 0.4 percent, a rate of growth that is unchanged from December, and the number of properties coming to market is the lowest in two years. Rightmove said there was a sharp divergence between favoured areas, where there were plenty of mortgage-ready buyers, and less desirable ones. "With the number of new sellers at a two-year low, prices are being underpinned by muted new supply just managing to fight off the downsides of lender reticence," said Rightmove director Miles Shipside. "However, in less popular locations, the smokescreen of New Year price optimism is temporarily masking the collateral damage that the new era of tighter credit will continue to inflict." Rightmove's survey was based on the asking prices of 45,795 properties added to its website by estate agents between December 5 and January 8. Edited January 17, 2011 by Pole Quote Link to comment Share on other sites More sharing options...
exiges Posted January 17, 2011 Share Posted January 17, 2011 To put a negative spin on it, as it's not seasonally adjusted, last January saw a +0.4% rise.. so this January hasn't bounced back as strong. Quote Link to comment Share on other sites More sharing options...
Pole Posted January 17, 2011 Author Share Posted January 17, 2011 To put a negative spin on it, as it's not seasonally adjusted, last January saw a +0.4% rise.. so this January hasn't bounced back as strong. At the moment most sellers don't have to sell, and we know that those who don't have to sell can ask whatever prices they want... Quote Link to comment Share on other sites More sharing options...
Pole Posted January 17, 2011 Author Share Posted January 17, 2011 BTW, can't wait to see how Daily Express will interpret the rightmove report... Quote Link to comment Share on other sites More sharing options...
montesquieu Posted January 17, 2011 Share Posted January 17, 2011 More evidence of collective insanity. Quote Link to comment Share on other sites More sharing options...
Pole Posted January 17, 2011 Author Share Posted January 17, 2011 More evidence of collective insanity. And so it begins. New year - old propaganda: U.K. Home Asking Prices Rise as Property-Supply Shortage Props Up Values (BLOOMBERG LINK) U.K. home sellers raised asking prices in January as a shortage of properties for sale propped up values, Rightmove Plc said. Average asking prices in England and Wales rose 0.3 percent to 223,121 pounds ($354,400) from December, when they dropped 3 percent, the operator of Britain’s biggest property website said in a report published in London today. The number of properties put up for sale was at a two-year low in January. In London, prices rose 1.1 percent. While the Bank of England kept its benchmark interest rate at a record low last week, banks are still curbing lending, approving less than half as many mortgages as they did at the peak of the housing boom in 2007. Britons’ confidence has plunged as the government’s fiscal squeeze, including an increase in value-added sales tax, dents the economic outlook. “Prices are being underpinned by muted new supply just managing to fight off the downsides of lender reticence,” Miles Shipside, commercial director of Rightmove, said in the report. “But everyone now sees less money in their wallet as a result of the VAT increase and so stability in base rates for the majority of 2011 is very important.” Sellers’ prices across the U.K. rose the most in the West Midlands in December, increasing 7.4 percent. Prices in the North declined 5.9 percent. The lack of property coming to the market will help push up asking prices in the next three months, Rightmove said. Mortgage Lending Some reports still suggest the housing market is weakening ahead of the biggest spending cuts since World War II. Acadametrics Ltd. said on Jan. 14 that house prices fell in December as a lack of mortgage finance prevented buyers from making a purchase. Hometrack Ltd. said on Jan. 12 that banks won’t step up mortgage lending this year. Rightmove said average asking prices in London rose to 413,259 pounds in December, and will probably continue to increase more than in the rest of the U.K. “As London has an international audience who rely less on mortgage finance to buy, we predict it will outperform the rest of the country yet again in 2011,” Shipside said. Quote Link to comment Share on other sites More sharing options...
shindigger Posted January 17, 2011 Share Posted January 17, 2011 Im keeping an eye out in south herts at the moment. EVERY FLAT ive taken remotley seriously has been cut by at least £5k in the last 3 months. these tweaks up are surely jst the result of an abramovich type doing a deal. In the real world prices are being cut. Some flats ive been following have been cut £15-20k since the summer. And lots of DO NOT USE TAPE over the loo and sink. Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted January 17, 2011 Share Posted January 17, 2011 Breaking News: As Titanic goes under, there is suddenly a glut of available seats in the first-class dining compartment. Anyone care to join me? Quote Link to comment Share on other sites More sharing options...
_w_ Posted January 17, 2011 Share Posted January 17, 2011 This is strange because I now go to rightmove twice a week to see price changes via property bee. I'd say in my experience over the last two months 99% of price changes are down. That's for a number of West London postcodes. Same for rents BTW. Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 17, 2011 Share Posted January 17, 2011 it's asking prices and not well mix adjusted AFAIK, meaningless drivel Quote Link to comment Share on other sites More sharing options...
Protect Rural England Posted January 17, 2011 Share Posted January 17, 2011 Im keeping an eye out in south herts at the moment. EVERY FLAT ive taken remotley seriously has been cut by at least £5k in the last 3 months. these tweaks up are surely jst the result of an abramovich type doing a deal. In the real world prices are being cut. Some flats ive been following have been cut £15-20k since the summer. And lots of DO NOT USE TAPE over the loo and sink. If you're looking in East Herts District Council territory of course prices are coming off. Stansted airport second runway 68 million passengers larger than Heathrow has never gone away Harlow North (in Herts) 32,000 units on land belonging to BP Pension Fund Ropemaker hasn't gone away Hopeless East - West Road network Shocking rail links to London Corrupt local authority May I politely urge you to look somewhere else? Don't get committed in this part of the world, it will end in tears and the area is blighted. Quote Link to comment Share on other sites More sharing options...
numpty Posted January 17, 2011 Share Posted January 17, 2011 As the market moves down it is common to hear that offers are made at an increasing discount to the asking price. So inevitably people increase the price they market a property knowing that they will get offers of less. On this basis the modest 0.3% movement upwards can be very easily explained. There is absolutly nothing on the horizen for the property market (aside from prime London Properties where Bonus money/Overseas buyers effect the market) that is going to make prices rise. If inflation roared away AND incomes rose as a result then there might be some property inflation otherwise its downhill slowly but surely for property prices. The fall will be arrested only when prices make the rental market work where a reasonable return is made based solely on rents and no property inflation. Quote Link to comment Share on other sites More sharing options...
mrpleasant Posted January 17, 2011 Share Posted January 17, 2011 My landlord: ASKED for £525k, GOT £415k. As we've frequently said, asking prices are largely a measure of delusion or desperation, depending on circumstances. Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted January 17, 2011 Share Posted January 17, 2011 We are still in the denial stage from what I can tell. Prices are still at stupid levels and the bottom end of the market is holding up well (too well), at least where I'm looking. Popcorn is still on standby Quote Link to comment Share on other sites More sharing options...
cool_hand Posted January 17, 2011 Share Posted January 17, 2011 Are we just going to get a repeat of what happened 2 years ago? My brother is an Estate Agent in Southampton and he said last week they've registered a very high number of new buyers in the past couple of weeks. Are people just mad? Quote Link to comment Share on other sites More sharing options...
xux42 Posted January 17, 2011 Share Posted January 17, 2011 Are we just going to get a repeat of what happened 2 years ago? My brother is an Estate Agent in Southampton and he said last week they've registered a very high number of new buyers in the past couple of weeks. Are people just mad? Some are. Your brother is an EA and therefore a hustler - would he ever describe a given no. of registrations as 'low' or 'typical'? Its not the end of Jan yet. This is a VI body referring to asking prices. Why are we even reacting to this? Slow news day? Quote Link to comment Share on other sites More sharing options...
Pent Up Posted January 17, 2011 Share Posted January 17, 2011 It's a lower number than I was expecting considering November and December showed -6%! Quote Link to comment Share on other sites More sharing options...
m4nclad Posted January 17, 2011 Share Posted January 17, 2011 In some respects, I'm not totally shocked. The market I am monitoring (and hoping to buy in), is the north-west. Whilst there are vast amounts of properties that have been on the market for some time (alot been 1-2 years) and are finally being significantly reduced, this seem to have escaped the notice of people who are newly listing their properties. Since xmas I have seen a whole host of properties hit the market at circa 2007 prices. We all know (and suspect the EAs must know), that they haven't a hope of selling anywhere near the prices that are being listed...from my experience of this market, these properties are valued around 25% above what they will realistically be able to sell for. It seems many sellers are still in a 2007 dreamland and as a hopeful buyer, it's going to be a long slog before realism becomes common place. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted January 17, 2011 Share Posted January 17, 2011 A house I've been watching in the south east was removed from sale November. Came back on Saturday having dropped the OIEO but same price. But I'm seeing an awful lot more properties coming on again since Christmas so I don't think there will be shortage like 2009. In fact as I keep saying this winter had more properties for sale than last spring/early summer even though meny were removed from sale. And it's on the up again Quote Link to comment Share on other sites More sharing options...
the flying pig Posted January 17, 2011 Share Posted January 17, 2011 BTW, can't wait to see how Daily Express will interpret the rightmove report... HOUSE PRICE JOY Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 17, 2011 Share Posted January 17, 2011 (edited) On the ground the story is often different. I am tracking properties in my area (Coastal East Sussex--5 mi E of Brighton) and have found 301 properties within a 5 mi radius for sale on RM priced between £200-£250k. I am also seeing 5 figure drops that have occured over the last couple of months as properties listed in late summer fail to find buyers. The bottom line: a lot to chose from and big drops underway. I have not seen a SINGLE price increase anywhere and the EAs I speak to all agree 2011 is going to be a good year for byuyers. As far as sellers remaining stubborn--the job cuts are just now filtering through in my area (wealthy, prosperous, resilient SE near the biggest boom city in the world--Brighton where 12:1 P/E ratio existed) with several people I know personally on notice that their job is history in April. RM may be heavily slanted to Lndon where £7,000,000,000.00 in bankster bonuses is being divved up with the blessing of Dave. Edited January 17, 2011 by Realistbear Quote Link to comment Share on other sites More sharing options...
jonboy2010 Posted January 17, 2011 Share Posted January 17, 2011 http://uk.reuters.com/article/idUKTRE70G00320110117 A drop in the number of new homes coming onto the market helped property asking prices rise in January for the first time in three months, property website Rightmove said on Monday. However January's 0.3 percent rise was tiny in comparison with the declines seen in the final two months of last year. Asking prices fell 3.0 percent in the month of December and 3.2 percent in November. Moreover, the figures are not seasonally adjusted and January typically sees a bounce back in prices after falls in the run-up to Christmas, when few people want to move house. As such, the survey will do little to boost spirits in a market where mortgages are being rationed to only the safest of buyers. Year-on-year prices are up 0.4 percent, a rate of growth that is unchanged from December, and the number of properties coming to market is the lowest in two years. Rightmove said there was a sharp divergence between favoured areas, where there were plenty of mortgage-ready buyers, and less desirable ones. "With the number of new sellers at a two-year low, prices are being underpinned by muted new supply just managing to fight off the downsides of lender reticence," said Rightmove director Miles Shipside. "However, in less popular locations, the smokescreen of New Year price optimism is temporarily masking the collateral damage that the new era of tighter credit will continue to inflict." Rightmove's survey was based on the asking prices of 45,795 properties added to its website by estate agents between December 5 and January 8. What a load of ****** all i am seeing is reductions in my area. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted January 17, 2011 Share Posted January 17, 2011 What a load of ****** all i am seeing is reductions in my area. Rightmove only tracks newly listed properties. Price reductions are not included. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 17, 2011 Share Posted January 17, 2011 (edited) http://www.zoopla.co.uk/for-sale/details/12501208?search_identifier=92034fdc79537910922450652c890b8d Saltdean, Brighton, East Sussex £250,000 - 3 bedroom detached house for sale Asking price changes £267,500 ↓ 2.7% Reduced on: 27th Nov 2010 £250,000 ↓ 6.5% Reduced on: 10th Jan 2011 http://www.zoopla.co.uk/for-sale/details/12501250?search_identifier=8e24b96be93481d42b3e239af7e24376 First listed on Zoopla £279,000 on 9th Sep 2010 Asking price changes £250,000 ↓ 10.4% Reduced on: 14th Jan 2011 http://www.zoopla.co.uk/for-sale/details/13734566?search_identifier=8da904b79955b865b732d758ca6b1272 First listed on Zoopla £250,000 on 10th Dec 2010 Asking price changes £230,000 ↓ 8.0% Reduced on: 12th Jan 2011 http://www.zoopla.co.uk/for-sale/details/11900848?search_identifier=ecb1649d5cbfb9d1ec68f061127d110b First listed on Zoopla £349,950 on 17th Aug 2010 Asking price changes £339,950 ↓2.9% Reduced on: 17th Sep 2010 £337,950 ↓0.6% Reduced on: 29th Sep 2010 £335,950 ↓0.6% Reduced on: 30th Sep 2010 £300,000 ↓ 10.7% Reduced on: 6th Dec 2010 http://www.zoopla.co.uk/for-sale/details/12501164?search_identifier=3bbbf970f3ddadb316b114fb5ef83f9e First listed on Zoopla £330,000 on 9th Sep 2010 Asking price changes £290,000 ↓ 12.1% Reduced on: 18th Oct 2010 http://www.zoopla.co.uk/for-sale/details/12501181?search_identifier=db908fa98fa7e662af59bad6e169b7d9 First listed on Zoopla £289,950 on 9th Sep 2010 Asking price changes £279,950 ↓3.4% Reduced on: 28th Sep 2010 £250,000 ↓ 10.7% Reduced on: 6th Dec 2010 Typical of what is going on East of Brghton. The "resilient" SE. No wonder the EAs want to tell everyone prices are rising and its best to get in quick. Edited January 17, 2011 by Realistbear Quote Link to comment Share on other sites More sharing options...
m4nclad Posted January 17, 2011 Share Posted January 17, 2011 On the ground the story is often different. I am tracking properties in my area (Coastal East Sussex--5 mi E of Brighton) and have found 301 properties within a 5 mi radius for sale on RM priced between £200-£250k. I am also seeing 5 figure drops that have occured over the last couple of months as properties listed in late summer fail to find buyers. The bottom line: a lot to chose from and big drops underway. I have not seen a SINGLE price increase anywhere and the EAs I speak to all agree 2011 is going to be a good year for byuyers. As far as sellers remaining stubborn--the job cuts are just now filtering through in my area (wealthy, prosperous, resilient SE near the biggest boom city in the world--Brighton where 12:1 P/E ratio existed) with several people I know personally on notice that their job is history in April. RM may be heavily slanted to Lndon where £7,000,000,000.00 in bankster bonuses is being divved up with the blessing of Dave. RB - I am seeing big drops where I am too, especially with property's that have been on the market for 6m+...the problem is I am also seeing new properties hit the market that are totally oblivious to what is happening and are pricing at 2007 levels. Isn't this where these so called "rises" in RM figures are coming from? Quote Link to comment Share on other sites More sharing options...
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