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House sellers fear weakening economy, RICS reveals

nice and gloomy this one :)

A growing number of homeowners pulled their home sales in September amid fears that Britain's ailing economy will force them to drop their prices, according to a poll by the Royal Institution of Chartered Surveyors (Rics).

Estate agents reported a fall in new instructions during September

Rics said its members reported that fragile consumer confidence and continuing fears over the economy are causing many to think twice before putting their properties up for sale.

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The Bloomberg report on the RICS survey has an attempt not to sound too gloomy, by telling us "the property market is failing to gain momentum.", but still finish the article admitting "underlying conditions remain weak".

http://www.bloomberg.com/news/2011-10-10/u-k-house-price-index-was-unchanged-in-september-rics-says.html

U.K. House Prices Unchanged as Gloomy Economic Outlook Weighs on Sentiment

A U.K. house-price index was unchanged last month as weak consumer sentiment and uncertainty about the economic outlook caused potential sellers to defer putting their homes on the market, the Royal Institution of Chartered Surveyors said.

The gauge by London-based RICS remained at minus 23 in September, it said in a statement today. A separate report from the British Retail Consortium showed that while U.K. retail sales rose last month, demand for big-ticket items was hurt by “the weak housing market.”

The property market is failing to gain momentum as first- time buyers struggle to afford a mortgage and inflation outpaces wage growth. Britons’ median income is expected to fall by about 7 percent in real terms in the three years through March 2013, the biggest three-year drop for 35 years, the Institute for Fiscal Studies said today.

“Falling supply of fresh stock is indicative of general fears overhanging the economy, with many potential sellers preferring to stay put for now,” RICS spokesman Michael Newey said in a statement. “As a result, the U.K. housing market remains pretty flat.”

The weaker economic outlook prompted the Bank of England to expand stimulus last week, raising its bond-purchase ceiling to 275 billion pounds ($431 billion) from 200 billion pounds.

“Although it is hard to see what will give the market a lift in the near term, the announcement of a further raft of quantitative easing from the Bank of England will help to at least keep mortgage rates down,” Newey said. “This, if nothing else, should ease the pressure on existing homeowners and limit the risk of a material pick-up in repossessions.”

Price Outlook

RICS said its measure of new buyer enquiries, an indicator of demand, rose 5 points to 3 last month from August, while an index of new vendor instructions, a gauge of supply, fell to minus 5 from minus 1. Price expectations were unchanged, with a net 23 percent of respondents saying they expected house prices to decline over the next three months, the report showed.

Of the 11 regions RICS tracks, London was the only area to record an increase in prices over the past three months.

The BRC’s report showed sales at stores open at least 12 months, measured by value, increased 0.3 percent in September from a year earlier. Sales of food gained 2.1 percent, spurred by unusually hot weather, while demand for clothes and shoes fell, it said.

“In these harsh times, we have to be thankful for this minor improvement in growth,” BRC Director General Stephen Robertson said in the report. “But underlying conditions remain weak.”

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So less kite fliers and proportionally more forced...sorry l mean motivated sellers. Can only mean one thing for asking prices - and ultimately sale prices.

Edited by DabHand

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So less kite fliers and proportionally more forced...sorry l mean motivated sellers. Can only mean one thing for asking prices - and ultimately sale prices.

Good point - it will remove the kite flyers.

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Here's the RICS press relase

The house price balance remained unchanged during September, with 23 per cent more surveyors still reporting prices fell rather than rose. Price expectations also remained unmoved from August; with a net balance of 23 per cent anticipating prices will decline rather than rise over the next three months. Every part of the UK, including London, recorded some degree of negative price expectations during September.

So 23 per cent more surveyors reported falling prices than rises, and this is reported in the general media as a house price index remaining unchanged. That's like RPI inflation remaining at 6% on two consecutive months and being reported as the index being unchanged. It's the same kind of deception willfully practiced regarding deficit [change] and debt [magnitude]. How do they get away with it? :angry:

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The Bloomberg report on the RICS survey has an attempt not to sound too gloomy, by telling us "the property market is failing to gain momentum.", but still finish the article admitting "underlying conditions remain weak".

We need it to gain momentum.

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Here's the RICS press relase

So 23 per cent more surveyors reported falling prices than rises, and this is reported in the general media as a house price index remaining unchanged. That's like RPI inflation remaining at 6% on two consecutive months and being reported as the index being unchanged. It's the same kind of deception willfully practiced regarding deficit [change] and debt [magnitude]. How do they get away with it? :angry:

I think it's more incompetence rather than intentional deceit tbh

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I think it's more incompetence rather than intentional deceit tbh

Politicians can be forgiven for painting things in a rosy light because they are idiots, i expect the media the report the difference between up and down when the numbers are on a screen in front of them.

There is positive spin, negative spin and spinning out of control....

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  • 277 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%



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