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Largest Ever Monthly Drop In Asking Prices

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Time for some more Government "schemes" to subsidise prices then.

I'm still waiting for my prediction to come true:

Student debt and a mortgage rolled into one at a socialised cost.

You won't be compelled to go to University, of course.

However, if you don't buy a university education (creating debt), you'll never be able to buy a home.

I'm amazed they haven't introduced this yet.

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The knock-on effects of oil shock is unfolding. And the next few months before election, along with the new Greek-driven European crisis will be interesting to watch.

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Shortage of property for sale in popular locations: While the number of resale properties coming to market in 2014 is up by 8% on 2013, HMRC transaction numbers for completed sales are currently 18% higher than the same period last year*, leading to some supply shortages, especially in popular locations. While buyer demand has tailed off during the second half of the year, there are now signs of fewer sellers coming to market too. In the last four weeks, 76,823 new sellers have come to market, down 4% on the same period a year ago and the second consecutive month that there has been a year-on-year fall. There are factors that could see this trend continue into 2015, exerting some modest further upwards price pressure. Stricter lending criteria may prevent some home-owners from being able to fund the trade up to the next bracket, while the usual pre-election jitters will deter others. In some especially buoyant parts of the country the lack of properties available gives limited purchase choice for prospective sellers who are planning to trade up, dissuading some home-owners from coming to market.

Need a buyer strike at these prices for FTBs and second steppers. BTLers and other investors need to have less reason to buy, perhaps with their portfolio values in stock markets down. Something event in other markets to make a lot more mid-higher end owners concerned that if they don't come to market to sell, they may get much lower price in future. Supply on market is so poor.

Good roads.. hundreds of them.. very rare for even houses to even come on market... same in 2008-09. Got to be pent up demand to sell eventually.

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Can't see/find any main Rightmove PDF style report they sometimes do. It must be around somewhere, from these reports; although just asking prices of new properties to market; not so many at all around my way, coming to market in November.

London House Prices Drop as Market Loses Froth: Rightmove
By Jennifer Ryan Dec 15, 2014

Asking prices in the capital fell 5.1 percent from November, it said in the last of its monthly property reports for 2014. It forecast a 2015 gain of 1 percent to 3 percent after an 11 percent surge this year. The weakness in December wasn’t confined to London, with a record 3.3 percent monthly drop recorded nationally.

[..]Nine of 10 regions tracked by Rightmove showed losses from November, led by a 5.7 percent drop in East Anglia. In London, all of the city’s boroughs recorded declines on the month.

BOE measures introduced earlier this year to limit risky mortgages, along with new lending rules, have cooled the market for residential property.

http://www.bloomberg.com/news/2014-12-15/london-house-prices-drop-as-market-loses-froth-rightmove.html

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Largest ever monthly drop in asking prices – but 2015 rise still forecast The headline ending predicts a RISE ...Ah ah, the first few months of the New Year are going to be MARVELOUS - by year end 2015 will resemble THE 1990 BUST ...NICE!

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If this is a sign of the "oil shock", then it is clear that certain parties were raking it in far too much when oil was priced "fairly".

The shock is that when the value is fair to everybody else, it becomes a bit of a shock.

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If this is a sign of the "oil shock", then it is clear that certain parties were raking it in far too much when oil was priced "fairly".

The shock is that when the value is fair to everybody else, it becomes a bit of a shock.

Oil shock!?

Pah!

When gas went over $3.50 a gallon in the US it crashed the economy. Low oil prices arent going to hurt the UK economy or house prices...maybe one or two less sales to rich arabs and russians, but thats about it.

Nope. Prices are losing momentum because theyve been bid up by over the 20% from HtB, and now must have more money shoved into bigger HtB schemes to keep moving.

House prices are no longer even remotely in the realm of economics now...its all politics.

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Oil shock!?

Pah!

When gas went over $3.50 a gallon in the US it crashed the economy. Low oil prices arent going to hurt the UK economy or house prices...maybe one or two less sales to rich arabs and russians, but thats about it.

Nope. Prices are losing momentum because theyve been bid up by over the 20% from HtB, and now must have more money shoved into bigger HtB schemes to keep moving.

House prices are no longer even remotely in the realm of economics now...its all politics.

people need a scapegoat...oil shock is perfect...its public, its ongoing, and its contemporaneous.

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Don't worry folks - nothing to see here. Gidiot pre-empted all this - the Stamp Duty changes are now in effect and the pensioners are circling en masse for their BTL orgy in April. As you were then. Move along...

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Right now - no pun intended - Fivelive are taking about this Rightmove drop and their reporter, and his guest, are both emphasising that a drop in asking prices does not necessary mean a drop in selling prices and not to panic.

Sersiously, this is a must listen to when it is up on iplayer a bit later on.

For years they have gleefully reported the Rightmove asking prices as price increases and how the house market prices are rising.... but now they do this!!!

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Don't worry folks - nothing to see here. Gidiot pre-empted all this - the Stamp Duty changes are now in effect and the pensioners are circling en masse for their BTL orgy in April. As you were then. Move along...

you do know the size of the average pension pot is absolute peanuts, dont you.

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You beat me to it, from memory about £17K.

Yep not going to far with those amounts, i expect there will be the pension pot amalgamation schemes were people will lose large percentage of their pot as soon as they join in commission.

Edited by awaytogo

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Won't take many pensioners to encash their pension pots (many have 00s of 000) to take up any slack, come April.

This could very well be a strong positive for transaction numbers.

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I thought this drop was because the index is not seasonally adjusted. From memory the index hit 2007 peaks earlier in year.

or mix adjusted.

Neal Hudson @resi_analyst 2h2 hours ago

Here's recent Rightmove London index in context of longer time series Monthly fluctuations should really be ignored.

B44ilxMCEAAST-0.png

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Time for some more Government "schemes" to subsidise prices then.

I'm still waiting for my prediction to come true:

Student debt and a mortgage rolled into one at a socialised cost.

You won't be compelled to go to University, of course.

However, if you don't buy a university education (creating debt), you'll never be able to buy a home.

I'm amazed they haven't introduced this yet.

Perhaps a scheme to add your student debt to a mortgage will appear, as it's all funny money anyway , and most will never be paid back :rolleyes:

Uni-Ninja loan Sir ? or perhaps your parents would like to act as guarantor by swapping their pension for a student mortgage debt combi derivative bond ?

Edited by Saving For a Space Ship

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