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Outlook For Housing Transactions Is Brightest In 14 Years


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HOLA441

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10167211/Outlook-for-housing-transactions-is-brightest-in-14-years.html

June data from the Royal Institution of Chartered Surveyors, published today, is strongly positive across several measures, with a majority of Rics members reporting house price rises and increased buyer enquiries. But the most striking data concerned surveyors’ predictions of future activity. A net balance of 45pc of respondents, up from 36pc in May, said they expected sales to rise in the next three months. This was “the most positive reading in this series’ 14-year history”, Rics reported. A raft of house market statsitics from various sources have shown marked improvement over the past year, but Rics’ Housing Market Survey - which is the oldest and regarded as one of the most authoritative - has only turned positive on several key measures in recent months.

Peter Bolton King, global residential director at Rics, said “We are finally starting to see what looks like the beginning of a recovery”. This had come after what “seemed a very long wait,” he said, but cautioned: “It is important to remember that activity levels still remain depressed by historic standards, but the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.”

A net balance of 23pc of surveyors expected prices to rise, June’s report found, “fuelled by increasing numbers of prospective buyers returning to the markets.”

Rival data providers have also noted improved conditions, leading to increase forecasts for 2013 price growth. Rightmove, the property website which captures data from millions of properties advertised online, has doubled its predicted average price increase for this year from 2pc to 4pc, due largely to increased consumer confidence and low mortgage rates. Miles Shipside, Rightmove’s housing analyst, said: “Barring a raft of bad economic news, we expect these factors to continue to impact positively.”

Other organisations to revise house price forecasts upwards include the Centre for Economics and Business Research, which initially expected prices to rise by less than one per cent this year but now says the figure is nearer 2pc. Knight Frank, the upmarket estate agent, has also switched from predicting a small, overall fall in average prices to an increase of 3pc. Most site the positive effect of Funding for Lending on mortgage cost and availablilty, coupled with short supply. Mr Bolton King of Rics said: “It is absolutely critical that the Government continues to focus on its role in supporting the delivery of new homes.”

Hmm..

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HOLA442

Hmm indeed. It's BS.

The problem is that we see articles talking about 'availibility' of credit and 'expected' rises in activity, which is all a bit premature imo. Transactions remain at a low level, net lending remains at all time series lows (since 1987 in the BoE figs) and that is despite the various props we've had recently.

Plus what sales there are are currently skewed to newbuild. Fancy selling an existing home at the moment?

Edited by cheeznbreed
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HOLA445

Sorry, I just don't believe it. I'm in my late 20s and so few of my peers have bought or are thinking about buying

You can't take your bearings from the MSM. Too many still think ever rising house prices, wanting younger borrowers to overpay and service huge debt mortgage(s) inc Help-To-Buy, is a 'good thing', rather than leaving them any income to, you know, spend in the economy proper. They can't even grasp house prices are heavily dependent upon new borrowers taking credit. Let's hope you are right and the next crunch comes from lack of borrowers, not on the credit availability side as the crunch in late 2007, which Gov has taken over to push new debt.

All VI to the bankers, older owners, and developers + a whole host of other malinvestment continuation.

BBC's headline on this RICs latest report.

House prices to keep on rising, say Rics members

Surveyors are expecting house prices to keep rising as the UK housing market starts to record some momentum following a sluggish few years.

Members of the Royal Institution of Chartered Surveyors (Rics) expect prices to go up by 1.5% over the next 12 months, its latest survey found.

This comes after a prediction of static prices at the start of the year.

Over the next five years, they predict a 4% a year average increase in property values.

At the beginning of 2013, they said there would be a 2.5% rise.

http://www.bbc.co.uk/news/business-23231520

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HOLA446

Sorry, I just don't believe it. I'm in my late 20s and so few of my peers have bought or are thinking about buying

Overheard a colleague at work talking about having found a house they are thinking of making an offer on. That makes a total of 7 FTBs so far this year at my work place who are at various stages of buying.

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HOLA447

Overheard a colleague at work talking about having found a house they are thinking of making an offer on. That makes a total of 7 FTBs so far this year at my work place who are at various stages of buying.

From my peers one has just bought a house, one has just bought a flat and two are actively looking to go from renting to OO citing babies on the way as reasons.

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HOLA448

Overheard a colleague at work talking about having found a house they are thinking of making an offer on. That makes a total of 7 FTBs so far this year at my work place who are at various stages of buying.

From my peers one has just bought a house, one has just bought a flat and two are actively looking to go from renting to OO citing babies on the way as reasons.

Unless they first build a time machine and go back to 2009 and get themselves a whacking great self-cert IO mortgage, the mere desire to buy or even the act of buying is not enough to push up house prices. I'm very happy to see transactions. How can prices fall if there are no transactions, ;) .

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