Rightmove Hpi Out Early

[Pent Up]

This shouldn't have been released until Monday.

U.K. home sellers lowered asking prices in July for the first time this year as a mortgage squeeze deterred buyers, Rightmove Plc said.

Asking prices dropped 1.6 percent from the previous month, when they had gained 0.6 percent, the U.K.’s biggest property website said in an e-mailed statement today. Seven out of 10 properties listed in 2011 are still available for sale, which Rightmove described as a “sobering reflection” of the market.

“We expect further falls over the next few months as buyer momentum ebbs away due to a combination of seasonal factors and a continuing lack of both mortgage finance and buyer confidence,” Miles Shipside, commercial director of Rightmove, said in the statement.

Values are up 0.1 percent from a year earlier to an average 236,597 pounds ($382,000). The monthly decline is the first since December, when asking prices fell 3 percent.

Seven of 10 regions tracked by Rightmove showed declines in July from June, led by a 3.5 percent drop in East Anglia. Asking prices in London fell 1.4 percent to an average 432,641 pounds, though they are still up 2.5 percent on the year.

The capital “is a less price-sensitive location than other parts of the country,” Shipside said. Nevertheless, “many of its buyers still require finances and so are also susceptible to the tightening of mortgage lending, pressure on income and the rising cost of living.”

U.K. mortgage approvals have stayed below 51,000 in every month since the end of 2009, compared with 128,512 at the end of 2006, before the onset of the global credit squeeze, Bank of England data show. Banks approved 45,940 home loans in May.

The central bank left its benchmark interest rate at a record low of 0.5 percent this month to support the economic recovery through the biggest fiscal squeeze since World War II. Minutes of the decision will be published July 20.

http://www.bloomberg.com/news/2011-07-14/u-k-july-rightmove-house-prices-fall-for-first-time-this-year.html

I expect falls in this index for the rest of the summer, then a small bounce in Autumn before dropping until next year. The first halfs gains will be more than wiped out by December.

[winkie]

So asking prices are dropping 1% per month ~ 12% a year, actual prices paid must be a greater drop.....7 in 10 properties put onto the market this year not sold....lack of funds available for prospective buyers, cash buyers holding off or buying other things......doesn't bode well for the high price of uk housing....and London is not immune, susceptible to the tightening of mortgage lending...oh dear.

[ingermany]

or for the benefit of Daily Express readers:

YOU ARE LOSING £124 per DAY

[The Masked Tulip]

I have been pleased to see some significant price drops on RM this week in Swansea, plus loads of SOLD and SSTC turn back to available.

One EA office in Swansea West told me things have gone "worringly quiet" and they don't know where the next sale is coming from. They also told me that their competitors across the road are now "panicking" but, alas, asking prices, even with drops, are still nuts.

[timebandit]

Thanks Pent Up, Rightmove historically been very frustrating.

Seven out of 10 properties listed in 2011 are still available for sale, which Rightmove described as a “sobering reflection” of the market.

[Pent Up]

The reason rightmove has been rising so much this year is a combination of the lack of SA, so they will always rise in spring, and also agents are seeing such low offers coming in that they price higher to allow for the buyer to knock a large amount off asking and the seller still gets their price. Obviously in the real world it just means no offers rather than a few low ones.

[OnlyMe]

I have been pleased to see some significant price drops on RM this week in Swansea, plus loads of SOLD and SSTC turn back to available.

One EA office in Swansea West told me things have gone "worringly quiet" and they don't know where the next sale is coming from. They also told me that their competitors across the road are now "panicking" but, alas, asking prices, even with drops, are still nuts.

Still a shit load of gmablers/flippers in the market, they'll take one look at the falls and pull their purchases - this break the make an offer, delay a bit and ee what the market does bridgade in their steps.

Then the EA's are left with the rest of the market which is dysfunctional at current pricing, good luck to them, they'll need it. If ever there was a workforce their tightened a noose round their own necks it is this lot.

Edited July 15, 2011 by OnlyMe

[The Masked Tulip]

Still a shit load of gmablers/flippers in the market, they'll take one look at the falls and pull their purchases - this break the make an offer, delay a bit and ee what the market does bridgade in their steps.

Then the EA's are left with the rest of the market which is dysfunctional at current pricing, good luck to them, they'll need it. If ever there was a workforce their tightened a noose round their own necks it is this lot.

There are still idiots out there. Was in an EA office this week listening to a chap who had just "fianlly" sold his house on the Gower and was downsizing - he and his wife are lecturers in Swansea Uni.

He was spinning this bullsh*t story about knowing the market, not being prepared to pay the asking prices, happy renting, etc, and then he came out with a few offer prices that he might make on certain properties - all just a few K below asking price on 300K and 400K house. Berk!!!

So I told him that at best houses get, according to the land reg, about 90% of asking and that he was offering around 99% of asking.

Then I asked one of my tame EAs how much offers were coming in at and the reply was 30K to 50K below asking.

This buyer thought he was a sharp clued up person but he was just an idiot when it came to house prices! Alas, people like him at a BIG problem in Swansea and, I guess, across the UK.

[winkie]

There are still idiots out there. Was in an EA office this week listening to a chap who had just "fianlly" sold his house on the Gower and was downsizing - he and his wife are lecturers in Swansea Uni.

He was spinning this bullsh*t story about knowing the market, not being prepared to pay the asking prices, happy renting, etc, and then he came out with a few offer prices that he might make on certain properties - all just a few K below asking price on 300K and 400K house. Berk!!!

So I told him that at best houses get, according to the land reg, about 90% of asking and that he was offering around 99% of asking.

Then I asked one of my tame EAs how much offers were coming in at and the reply was 30K to 50K below asking.

This buyer thought he was a sharp clued up person but he was just an idiot when it came to house prices! Alas, people like him at a BIG problem in Swansea and, I guess, across the UK.

....easy come easy go........anyway are there many university lectures in South Wales?....I would imagine it quite rare to find two in one household.

[The Masked Tulip]

....easy come easy go........anyway are there many university lectures in South Wales?....I would imagine it quite rare to find two in one household.

Not in Swansea. I know numerous couples where both are lecturers in the local unis. I also know numerous reitred coupes who were both uni lecturers. The sense of entitlement and arrogance from many of them is incredible.

In fact, I would go so far to say that, outside of investment banks in the city, some of the most arrogant people I have met have been local uni lecturers.

[winkie]

Not in Swansea. I know numerous couples where both are lecturers in the local unis. I also know numerous reitred coupes who were both uni lecturers. The sense of entitlement and arrogance from many of them is incredible.

In fact, I would go so far to say that, outside of investment banks in the city, some of the most arrogant people I have met have been local uni lecturers.

Not nice.....so this is what we are up against.

[OnlyMe]

Not in Swansea. I know numerous couples where both are lecturers in the local unis. I also know numerous reitred coupes who were both uni lecturers. The sense of entitlement and arrogance from many of them is incredible.

In fact, I would go so far to say that, outside of investment banks in the city, some of the most arrogant people I have met have been local uni lecturers.

Two prong property disease - main protagonists being the financiers and a lot of their public sector, both overpaid and out of touch with reality.

[Bruce Banner]

Not in Swansea. I know numerous couples where both are lecturers in the local unis. I also know numerous reitred coupes who were both uni lecturers. The sense of entitlement and arrogance from many of them is incredible.

In fact, I would go so far to say that, outside of investment banks in the city, some of the most arrogant people I have met have been local uni lecturers.

Those who can, do; those who can't, teach .

[The Masked Tulip]

Those who can, do; those who can't, teach .

Yes, a stupid comment that put me off going into teaching 20 years ago. I would be a lot better off now if I had done so.

[moonriver]

Looks like supply levels going up and up then.

edit.. was repeating OP link..think I am still asleep

Edited July 15, 2011 by moonriver

[The Masked Tulip]

I love your little South Wales anecdotes. I'm beginning to feel like a local, like I belong there. The familiarity of one's home. I might move. What are prices like again?

Don't say that - it will give EAs reading this the opportunity to raise asking prices on 3 bed semis by 100K.

[moonriver]

A quick question...

these asking prices...

are they just asking prices for properties NEW to market, as opposed to the huge amount of properties I am now seeing reducing their prices, after initially marketing them at a higher price?

[The Masked Tulip]

A quick question...

these asking prices...

are they just asking prices for properties NEW to market, as opposed to the huge amount of properties I am now seeing reducing their prices, after initially marketing them at a higher price?

I read on here that RM reports are just for initial aking prices and never include reductions. I imagine it would be difficult for them to keep track of reductions.

[Tired of Waiting]

This shouldn't have been released until Monday.

http://www.bloomberg.com/news/2011-07-14/u-k-july-rightmove-house-prices-fall-for-first-time-this-year.html

I expect falls in this index for the rest of the summer, then a small bounce in Autumn before dropping until next year. The first halfs gains will be more than wiped out by December.

Great news. Thanks for that PU Pent Up. (Your abbreviation sounds ... a bit odd. )

So buyers expectations are finally going down. Fecking finally! FGS!

<sigh>

But I think RM will keep going down from now onwards, at least until the next "hopeful season" = next spring.

or for the benefit of Daily Express readers:

YOU ARE LOSING £124 per DAY

[Tired of Waiting]

The reason rightmove has been rising so much this year is a combination of the lack of SA, so they will always rise in spring, and also agents are seeing such low offers coming in that they price higher to allow for the buyer to knock a large amount off asking and the seller still gets their price. Obviously in the real world it just means no offers rather than a few low ones.

I keep forgetting it, this index is of initial asking prices, right? New listings only? And not the average asking prices across their whole site?

[Pent Up]

Great news. Thanks for that PU Pent Up. (Your abbreviation sounds ... a bit odd. )

So buyers expectations are finally going down. Fecking finally! FGS!

<sigh>

But I think RM will keep going down from now onwards, at least until the next "hopeful season" = next spring.

Maybe just call me Pent or just P.

I think there will be a short 1 or 2 months bounce in the autumn but there will be some large falls before and after that.

[moonriver]

I imagine it would be difficult for them to keep track of reductions.

Yes I reckon you are right there.

If so, I think with all the reductions coming thick and fast now, asking prices in general really are a lot less on average than Rightmove's official figures for original asking price figures are.

I too enjoy the anecdotes, keep 'em coming.

[The Masked Tulip]

I keep forgetting it, this index is of initial asking prices, right? New listings only? And not the average asking prices across their whole site?

Yes.

[Si1]

Yes, a stupid comment that put me off going into teaching 20 years ago. I would be a lot better off now if I had done so.

teachers earn a lot more than uni lecturers for the most part, much to the latters' annoyance (the young ones anyway)

as to arrogance - I've noticed in a few unis I've had dealings with, that academic and research staff have to compete constantly with each others' opinions - it's the nature of academia - so as a competitive tactic they simply have to have self belief even if they have little grounds, it is professionally essential, hence the arrogance of lecturers; they're not as clever as their position implies, you see, but their professional position requires that they are, and to maintain their authority over their students and each other, they blag, without knowing it

as for teachers, they just got far too well paid over the last 10 years.

[Tired of Waiting]

I read on here that RM reports are just for initial aking prices and never include reductions. I imagine it would be difficult for them to keep track of reductions.

They wouldn't have to "keep track of reductions" per se, Just do the the price average across the site. No? It should be easy for a computer to do that, I guess?