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Asking Prices Continue To Soar - Rm Oct Index

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Price of property coming to market up by 2.6% (+£6,784) this month, though annual rate drops from 7.9% to 7.6% as pace of rises slows

South East (+10.0%) overtakes London (+9.6%) as highest annual riser

Buyers seeking better affordability and value out of London town

Upwards price pressure fuelled by shortage of home owners willing to sell

Largest ever data-driven analysis predicts South East will be fastest rising region in next five years, up 37%

Forecast cites Southampton, Luton and Brighton as the countrys best property bets

With time to sell and property supply both increasing is the traditional autumn price flurry sustainable? New seller numbers up 10% compared to October 2013 giving buyers more choice and negotiating power

Edit to add - there is currently no mention of this on the BBC... Edited by rantnrave

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In my search area I am frequently seeing new places come on the market at 20% more than identical houses in the same road, in many cases, well above 2007 peak.

I wonder if any of these idiots even glance at Rightmove before they pluck a figure out of their arses?

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Different take on the data:

Asking prices up, but can vendors justify them?

Rightmove doesn’t appear to have read the script when it comes to the market - while many agents are reporting gentle price falls this autumn, the portal’s asking price index shows an increase in asking prices of 2.6 per cent over the past month.
This is the lowest rise at this time of year since 2008 but the portal warns that sellers may still find that their asking prices are too optimistic in parts of the country where the supply exceeds buyer demand.

New seller numbers are up by an average of 10 per cent compared to October 2013, giving buyers in some locations more fresh choice and negotiating power according to Rightmove.

Yet the average price of property coming to market increased in every region this month.

One reason for this is that there is still less property on the market due to the increased number of transactions, though with demand showing some signs of slowing in pace, and with buyer numbers traditionally more subdued during the winter, the portal suggests this price increase may prove to be too optimistic.

Rightmove’s national ‘time to sell’ index is up from 65.8 days to 67.8 days this month.

There appear to be few signs of a slowing market in the south east, which is now the strongest performing region in the country over the last 12 months. New seller asking prices in the south east are 10 per cent higher than a year ago, and higher than London’s current annual rate of 9.6 per cent.

“Demand has been on the up in most locations so far this year, but agents in many parts of the country report a slowing in that pace with an initial post-summer pick-up failing to gain momentum” says Rightmove’s Miles Shipside.

“There are more sellers giving it a go with newly-marketed listings on the up, and it seems that they recognise there is a window to sell now. However, to sell their property more quickly they should make it the most attractive in terms of price and preferably presentation if they are serious about selling within weeks rather than months.”

http://www.estateagenttoday.co.uk/1479-asking-prices-up-but-can-vendors-justify-them#itemCommentsAnchor

Edited by rantnrave

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Live in Luton , can confirm asking prices here have gone crazy in last 6 months.1 beds cluster home sold for 106 k / 110 k last year now on market for 125k.All due to London as Luton itself got nothing going for it in terms of well paid employment.

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A house came to market 10 or so days ago, and a friend was shocked at the asking price the EA had put it on for.

He sent the EA a message via RM's 'Request More Details' system, setting out his surprise at the asking price, and how the EA would get more sales at more realistic prices.

Next day the EA upped the asking price by £60,000 lol. Still on at just under £400,000. The EA must have taken it personally instead of logically.

He has sent a few message to EAs lately for some listings.

Wake us up at asking price £320Kish. We're lined up to buy in ----------, so are many of our friends in their 30s. Blocked by silly prices. Lower prices = more sales = higher profits for YOU. Do elderly owner-sellers rly need to hold out for £100ks+ greedy pound profits for houses bought dirt cheap ages ago?
---
The Times 17 October 2014
Your price has got to be realistic.

Savills' country department snippets: 'Balance of buyers changing in the North' - 'market remains price sensitive' - 'buyers motivated by value' - 'Sellers have to be honest with themselves and clued up.' - 'Reducing price a positive move designed to generate interest and complete a sale.'

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Im sure EAs up the price on rightmove the moment they have a prospect enquiring.

I KNOW they overprice to get the instruction over their competitors.

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From the "Is Prime London Crashing?" thread:

RM does not measure/include the price reductions. Only the initial asking price ... silly it is ...

Don't forget this. The Rightmove index is a joke.

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A few years ago, I put in an offer for a place that hadn't properly come to market yet (it had a sign up outside , but EA hadn't taken photos, done floorplan etc), so I got to see it early as I was on their books. After I went to view it with partner, we loved the place, and put in an offer exactly at the asking price, as we had been messed around before and just wanted piece of mind. We were chain free, decent desposit, and had MIP....the damn estate agent responded after a few days by saying it's below asking price, by upping the original price by £15k, and the vendor wants to wait it out to get best price.

Turns out the vendor was a builder that just does this all the time: Buy older property and do it up. And also, the fact there was no actual documentation out from the EA, meant that they seemed to be just hoping for idiots like me to put in bids to set a real base price.

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Rightmove and their sodding asking prices.sold prices are the only ones that should be reported, the news will spin this as rises, it will cause panic for buyers and increase greed in sellers.

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I know of a house being sold where the sellers are (I think) under a bit of pressure not so far from me; the price has dropped a touch over 10% in a couple of months since listed (and it was originally priced to undercut similar houses nearby) and it seems they are motivated to get rid. The place is now empty as the sellers have bought and upsized (from a 4 bed detached) and without knowing their circumstances too well (judging books by covers it seems they spend way beyond their apparent means) it looks like they will have to cut more if they want to shift it anytime soon as it still represents some 13 times local earnings. Reckon the extra borrowing as a result of having this place is costing the sellers £1k a month, give or take. Would not be surprised to see it offered for rent before long.

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I seem to remember when the methodology for calculating the shitemove index has been discussed here, it does not include for price reductions and is essentially simply the mean average for "new listings" in a given month.

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Surprised no-one's posted the regional MoM figures from http://www.rightmove.co.uk/news/files/2014/10/october-2014.pdf:

North: -0.8%

Yorks/Humber: -0.3%

North West: +1%

East Mids: +2.3%

West Mids: +2.1%

East Anglia: -1.4%

Wales: +0.6%

Greater London: +7% (seriously, but let's not forget August was -5.9%)

South East: +2.2%

South West: +2.7%

The London borough data is very mixed, but ultra-prime Kensington and Chelsea is now down 9.3% YoY. I thought that would've made an interesting headline, but no-one seems to be running with it.

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Surprised no-one's posted the regional MoM figures from http://www.rightmove.co.uk/news/files/2014/10/october-2014.pdf:

North: -0.8%

Yorks/Humber: -0.3%

North West: +1%

East Mids: +2.3%

West Mids: +2.1%

East Anglia: -1.4%

Wales: +0.6%

Greater London: +7% (seriously, but let's not forget August was -5.9%)

South East: +2.2%

South West: +2.7%

The London borough data is very mixed, but ultra-prime Kensington and Chelsea is now down 9.3% YoY. I thought that would've made an interesting headline, but no-one seems to be running with it.

People don't like reality in the housing Market.

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A house came to market 10 or so days ago, and a friend was shocked at the asking price the EA had put it on for.

He sent the EA a message via RM's 'Request More Details' system, setting out his surprise at the asking price, and how the EA would get more sales at more realistic prices.

Next day the EA upped the asking price by £60,000 lol. Still on at just under £400,000. The EA must have taken it personally instead of logically.

He has sent a few message to EAs lately for some listings.

Wake us up at asking price £320Kish. We're lined up to buy in ----------, so are many of our friends in their 30s. Blocked by silly prices. Lower prices = more sales = higher profits for YOU. Do elderly owner-sellers rly need to hold out for £100ks+ greedy pound profits for houses bought dirt cheap ages ago?

---

The Times 17 October 2014

Your price has got to be realistic.

Savills' country department snippets: 'Balance of buyers changing in the North' - 'market remains price sensitive' - 'buyers motivated by value' - 'Sellers have to be honest with themselves and clued up.' - 'Reducing price a positive move designed to generate interest and complete a sale.'

That particular message above was sent to this EA for this house.. probably just coincidence but just reduced by £25,000 to £399,950.

http://www.rightmove.co.uk/property-for-sale/property-31878453.html

Other houses in postcode, admittedly with superior layouts (eg moden kitchen layouts, double-garages, perhaps larger gardens) all been selling quite a bit above £400K in recent years, but I will accept this as one of the first signs I've seen of market tilting the right way (becoming less expensive).

http://www.rightmove.co.uk/house-prices/SK9-2DQ.html

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I should add they wouldn't buy it at £320,000 either, but they just wanted to nudge the EA on logic from the madness VI owners think their homes are worth.

Duel income couple, both working like fury in demanding senior employment positions; him on £60K and forced to travel quite a lot, one eye on how secure his job is. Her on £40K having held onto her position in finance. They want money to raise their kids, eye on mortgage rate finance becoming more expensive, to have a life.. other than borrowing huge sum to reward some elderly owners.

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