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rantnrave

Rightmove Asking Prices Feb - Up (Of Course!)

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+2.1% MoM, although this index is never seasonally adjusted, so compare this to up 3.6% last Feb

+6.6% YoY (down from +8.2%)

Decades of inadequate provision of homes to satisfy demand are having an increasing effect, with a tight-stock market resulting in a shortage of quality property to trade up to:

Average price of property coming to market up by over £5,000 this month (+£5,729/+2.1%), with all regions reporting uplifts

Increase in demand for property continues with busiest ever January site traffic on Rightmove

31% increase in housing transactions in last two years in England and Wales, outstripping 11% rise in number of properties coming to market in same period

Some agents reporting lowest ever stock of quality property for sale, as lower owner-occupation, buy-to-let investors not selling, and owners reluctance to sell before you find contribute to a 4% fall in new seller numbers compared to same period in 2014

Different tactics required for a successful move in a tight-stock market

http://www.rightmove.co.uk/news/files/2015/02/february-2015.pdf Edited by rantnrave

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Lower owner-occupation levels, down from a peak of 71% in 2003 to 65% in the latest figures, mean that this shrinking sector has less ability to meet the housing needs of those looking to get onto or trade up and down the property ladder. This is exacerbated by the massive growth of the buy-to-let investor sector, up by 2.6 million homes since 1996. Buy-to-let investors’ long-term investment strategy means they typically do not sell as frequently as owner-occupiers, resulting in reduced supply and choice for owner-occupier buyers in lower price sectors.

Shipside observes: “More property could be effectively removed from the market when the buy-to-let sector sees a further boost from April, as agents are already reporting preliminary enquiries from retirees planning to cash in their pension pots and invest in buy-to-let properties to secure a steady inflation-proof retirement income. Agents also report a reluctance amongst owner-occupiers to put their property up for sale, as they can see little suitable to buy, though in truth selling first (subject to contract) puts you in the best position to secure your next home. Given that this is the likely shape of the market now and in the future, home-owners need to get their tactics right for a successful tight-stock market move if those are the conditions in the area where they wish to buy.”

Of course, if BTL is hoovering up and hogging all the housing stock, then we need less EAs - unless they can find a way to get the priced out generation back into the market... Edited by rantnrave

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Im seeing absolutely nothing coming onto the market in my price range and can believe asking prices are up.

Kite flying after speaking to relatives at Xmas seems to be the way forward.

A house i looked atin 2011 that was sold for 200K is STC for 260K, if prices had continued slowly going down i'd have bought something similar by now for such folk to drop the price will take either a long time or a serious financial shock ... and as the banks can print money i think serious shocks are unlikely.

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Was reading about it in The Times, Telegraph and, slightly more balanced story in the Guardian.

Low supply = the new norm, according to some in MSM. It's true around here supply is a joke; and of those on market, so many rubbish houses; the lowest quality stock - in price range I would interested in anyway, if they ever came towards value.

And time and time again, house sells and goes on rental market. Oh well, no doubt someone will have a breakdown of excuses that housing VI might, one day, one year, see values correct a little bit, despite year upon year upon year of HPI.

Housing shortage blamed after biggest price rise in almost a year
February 16 2015

The chronic lack of properties coming on to the market has pushed up average house prices by nearly £6,000 this month and experts are warning that the shortage is the new norm.

The average asking price for a home in England and Wales rose by 2.1 per cent to £279,004, with all regions recording increases. This was the joint highest monthly rise since April last year. On an annual basis prices were 6.6 per cent higher.

The average asking prices for first-time buyers jumped 2.4 per cent from £163,251 in January to £167,107 this month, according to Rightmove.

article continues into paywall http://www.thetimes.co.uk/tto/news/uk/article4355170.ece

http://www.telegraph.co.uk/finance/property/house-prices/11414643/House-asking-prices-on-rise-as-supply-dries-up-reveals-Rightmove.html

http://www.theguardian.com/money/blog/2015/feb/16/conflicting-uk-house-price-data-two-tier-market-london

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We need to remember RM is a pack of lies. Only shows INITIAL AP which the Is London Crashing? thread shows is nonsense and more often than not gets reduced.

Also see this AP is a massively out of line with sale prices

Edited by Killer Bunny

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Im seeing absolutely nothing coming onto the market in my price range and can believe asking prices are up.

It was like that around here last year, followed by a steady build up over easter and the summer. By late October there were quite a few reductions and a bit of value. That's when we made the offer on our to be house and got a reasonable deal.

IMO it's not worth looking between now and after summer unless you want to overpay. The VI driven media will be out in force shortly to scare everyone with stories of immigrants, supply shortage, low interest rates, pensioners etc. You name it they will turn it into a property ramping story.

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Also worth stating that RM are trumpeting their viewer numbers at the moment because several new property search sites have come online since the new year (this message about visitor numbers is for EAs - encouraging them not to switch who they currently advertise properties for sale with).

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Also worth stating that RM are trumpeting their viewer numbers at the moment because several new property search sites have come online since the new year (this message about visitor numbers is for EAs - encouraging them not to switch who they currently advertise properties for sale with).

Also RM upping their fees, it seems. Rightmove is faster to type than Onthemarket which I searched on for the first time a few days ago. They should have chosen a better name.

Twitter

secret agent @theagentsdiary · Feb 8

As @rightmove signal increase in charges http://www.propertyindustryeye.com/rightmove-defends-latest-subscription-hikes-agents/… some industry insiders rhyme right move with s***e move.

A run of comments left by EAs/Property VI on that story, but found it difficult to understand.

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The pdf shows average number of properties per agent dropping to 58 from 64 in 2014 and they report some agents have lowest stock ever of qquality properties. This also ties up with the Land Registry repossession statistics that are trending lower. Interesting time to sell is increasing month on month but might just be a seasonal thing as year on year it is inline at 87 days versus 89 in Jan'14.

I don't think this is great news for agents as they themselves suggest they don't have much to sell. It also doesn't tally up with Office for Budget responsibility forecasts for both increasing house prices and transaction volumes. I suppose a plus might be lenders chasing demand so maybe we'll see even lower mortgage rate products.

Edited by Ash4781

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Dunno why anyone gives these estate agent generqated stats any air time.

The list properties then drop them 10% the next day. I'd say it was fraudulent/misleading advertising if anything.

They should stop publishing them before someone twigs and reports them to trading standards or the police.

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How come (asking) prices have gone up 2.1% in February when February is only half-way through. And presuming RM didn't compile these figures this morning, I wonder how much of February they've actually analysed in order to come up with that conclusion.

They never let a small technicality get in the way of a HPI positive story

Look on the bright side summer is two weeks closer now

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