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Rightmove Asking Price - May 2015: -0.1%

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Nice to see a fall on what is usually an uberbullish index.

Other main points:

Brakes removed from housing market as pre-election uncertainty is lifted

Pre-election drop of 0.1% (-£242) on price of property coming to market, the first fall in May since the last general election in 2010 and a big contrast with May 2014s +2.1% increase

Majority government means some of the brakes now off for prospective buyers and sellers:

- New seller numbers jumped 17% after the 2010 general election and we anticipate another surge now, giving fresh choice to stock-starved buyers

- Buyer affordability aided by lowest annual increase for over two years, down to just +2.5%

- Removal of threat of mansion tax stimulates prime market sector

- Price rise momentum may be tempered by stricter lending criteria and forthcoming uncertainty of Euro-referendum

http://www.rightmove.co.uk/news/files/2015/05/may-2015.pdf

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Odd, early this morning I heard a report on BBC Fivelive that Rightmove were showing that the brakes - their words - had been taken off the housing market since the election.

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Nice to see a fall on what is usually an uberbullish index.

Other main points:

http://www.rightmove.co.uk/news/files/2015/05/may-2015.pdf

Nice bit of logic there. Seller numbers up 17% = brakes off market = higher prices.

Not saying prices won't rise, just that their statement is about as useful as Esperanto at a UKIP conference.

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Nice bit of logic there. Seller numbers up 17% = brakes off market = higher prices.

Not saying prices won't rise, just that their statement is about as useful as Esperanto at a UKIP conference.

Well of course it could mean the opposite of what you are interpreting it as?

After all, it is only if you "take the brakes off" that the locomotive can actually go ahead and crash! :lol:

Which of course is what they (Rightmove) will later claim IF that is indeed what happens. Sometimes reports can be written in such a way, with words carefully chosen to be interpreted in multiple ways, that they are akin to horoscopes - you read into them what you want to read into them.

Edited by anonguest

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Pointlress index until they advertise actual current asking prices, which must be well below initial asking prices.

Move along, nothing to see here

While I agree, I do think the index has a use as a barometer of seller sentiment.

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While I agree, I do think the index has a use as a barometer of seller sentiment.

Yes, I agree, or maybe better stiil as a measure how much estate agents lie.

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Just in my area at them moment new houses coming on everyday, crazy amounts of houses for sale, 2 or 3 for sale boards on every street often more. Yes I know it probably doesn't match "official stats" but I wont buy a house with official stats I only care about where I want to live and I can tell you there is NO shortage of housing in yorkshire. The market is starting to flood.

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Just in my area at them moment new houses coming on everyday, crazy amounts of houses for sale, 2 or 3 for sale boards on every street often more. Yes I know it probably doesn't match "official stats" but I wont buy a house with official stats I only care about where I want to live and I can tell you there is NO shortage of housing in yorkshire. The market is starting to flood.

Good, the sooner it all collapses the better.

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Good, the sooner it all collapses the better.

Good, the sooner it all collapses the bette

I have no doubt the collapse has started here. Prices are slowly coming down and nothing is moving. Panic hasn't set in yet but its coming. Even the missus who takes no interest in such things was commenting on how many for sale signs there are, she even asked why are so many people trying to sell there houses?

I thought about posting some pics of just my route to work it has to be seen to be believed. It is starting here regardless of that the BBC or rightmove tells me.

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Maybe it's people who thought Labour would win and tax/borrow and spend. Gulled by the Conservative austerity story. Maybe public sector workers?

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well it is Yorkshire and you can tell by the vans in the drive what they do, certainly not international financiers or CEOs from what I hear anecdotally it is two things, old people looking to get out usually because there house is too much for them now and they have disabilities etc. The other thing I am hearing is people are loaded up with debt and getting into job troubles where they aren't earning like they used too or have lost there job so are looking to downsize.

There are three sites full of new builds offering HTB in the same area too, that's really gonna hurt anyone trying to sell too.

definitely no foreign investors or hedge funds :)

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It's not clear but assuming the £17,790 figure is for England and Wales and not just for England or just London.

According to the Land Registry link below average England and Wales house prices are about £178,007.

According to the ONS links below average UK house prices are about £268,000. The average for England and Wales average is likely a bit higher as the UK figure includes Northern Ireland which has lower house prices on average.

According to the Rightmove link below average England and Wales house prices are about £285,891 (asking prices).

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424293/HPIReport20150428.pdf

http://www.ons.gov.uk/ons/rel/hpi/house-price-index/february-2015/stb-february-2015.html#tab-Average-house-prices-in-countries-and-regions

http://www.ons.gov.uk/ons/rel/hpi/house-price-index/february-2015/stb-february-2015.html#tab-House-price-index-UK-summary

http://www.rightmove.co.uk/news/house-price-index/may-2015-2

So using the percentage difference figures in the chart above the average sale figure should be something like

ONS: £285,891 x 6% = £17,153 difference (compared to Henry Pryor's £17,790 difference). So that would be £268,738 and that roughly ties in with the ONS average house price of £268,000.

Land Registry: £285,891 x 38% = £108,639 difference . So that would be £177,252 and that roughly ties in with the Land Registry average house price of £178,007.

So maybe rather than the Henry Pryor (estate agent and bbc property pundit) remark of:


Gap between average asking price & average sale price is £17,790. Worth remembering when out house-hunting

Why not - it's worth remembering when out house hunting that the gap between average asking price and average sale price is £108,639.

(why the massive discrepancy with the Land Registry figures - which figures are true)

Edited by billybong

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Ah, the good old Delusion Index :)

I'm confused (easily done).

Shouldn't any distinction between this Rightmove Index and the sold indices highlight the difference between initial asking prices and sold ones? Do we have any aggregate data of average asking prices and not just the initial AP figures RM churn out each month?

Incidentally, this is as good a place as any to highlight that Rightmove was originally going to be called Doorknobs (http://www.telegraph.co.uk/finance/property/11494364/Youll-never-guess-whos-more-popular-than-One-Direction.html). Personally I think they should have merged the two and called themselves Rightknobs.

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Digsby started a thread a few months ago - 1/3 of properties withdrawn without selling. I suspect these are the extreme kite fliers, but rightmove obviously happy to include them.

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The links below give the Halifax and Nationwide figures

http://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/halifax/2015/housepriceindexapril2015.pdf

http://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price-index/Apr_2015.pdf

Halifax (April) = £193,048

Nationwide (Q1 2015) = £188,566

So you pays your money and you takes your choice - but the ONS figures seem to be miles out.

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