Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Housing Market Stalled At The Beginning Of The Year

Recommended Posts

http://uk.biz.yahoo.com//060130/214/g2hou.html

Spin decreases:

Monday January 30, 01:00 PM
January house prices inch higher
LONDON (ShareCast) - Activity in the housing market stalled at the beginning of the year, according to the latest survey as buyers wait for anticipated interest rate cuts.
Property research firm Hometrack said prices in England and Wales were barely changed in January, up just 0.1% as
activity levels fell almost 14% and prices remained static in 85% of postcode areas
.
The survey did have a positive slant though as
9% of estate agents recorded a rise in prices
compared with 6% reporting falls.
Hometrack is generally perceived to be more conservative than other surveys showing a 1.6% fall in 2005 prices compared with Halifax's 5% rise.
The slight rise in prices pushed property prices up to £161,100, though still down about 1.04% a year earlier. Last month was the first rise in prices reported by Hometrack for 18 months.

What about all those VI stories about buyers lining up at EA doors to get in after Christmas that we have been reading lately? How does that fit with a 14% DECREASE in activity?

Hometrack are not so much more "conservative" than Halifax as more in touch with reality! :lol:

And only 9% EAs reporting price rises which means a huge 91% must be pessimistic!

The tide is turning very rapidly it seems. HPC 2006.

Edited by Realistbear

Share this post


Link to post
Share on other sites
Guest Riser
Activity in the housing market stalled at the beginning of the year, according to the latest survey as buyers wait for anticipated interest rate cuts

They are not waiting for anticipated interest rate cuts the are waiting for prices to come down.

Despite signs of increased activity here in the North West the last two people I have talked to about house prices have been more bearish than last year, one mentioned the record low number of first time buyers, and the other said they had seen a report in the express that houses were 20% over valued, neither expected prices to go any higher but were reluctant to consider falling prices resorting to the usual mantra "House prices may stall but they never come down" :rolleyes:

Share this post


Link to post
Share on other sites

I thought interest rates were more likely to head up right now?

With the Fed about to go up to 4.5% on a parity with us , I would now say it's a foregone conclusion that our rates will go up.

Does anyone know the last time we had parity of interest rates with the US?

Share this post


Link to post
Share on other sites

With the Fed about to go up to 4.5% on a parity with us , I would now say it's a foregone conclusion that our rates will go up.

Does anyone know the last time we had parity of interest rates with the US?

About time too, need a slight boost on my savings.

Share this post


Link to post
Share on other sites

...neither expected prices to go any higher but were reluctant to consider falling prices resorting to the usual mantra "House prices may stall but they never come down" :rolleyes:

Hey. I thought the usual mantra was "house prices only ever go up". Further to the 5 stages of grief theory as applied to the housing market (exchange grief for monetary loss):

do I spy the 3rd stage starting to kick in with punters - Bargaining?

Share this post


Link to post
Share on other sites

5% here we come.

Interesting. An article in last week's Investor's Chronicle was attempting to link IRs to the money supply. If this relationship holds firm, IRs will reach at least 6.75% by 2008.

Though I've been worrying about deflation, I now reckon inflation will rear its head and interst rates will rise. The gold market certainly thinks so.

Share this post


Link to post
Share on other sites

Now as I recall, back on 16 January Rightmove were telling us that the first week of the year was a king tide and that the rest of the year would follow:

Rightmove Says Houses Went Up 2k In 1st Week Of Year

Now we are being told that is not quite the case. What are they relying on? A short memory? Even though I thought it was crap at the time it did get me a little bit down. Only illustrating the problem with responding to daily outpourings of spin at the expense of broader analysis.

Share this post


Link to post
Share on other sites

You sell TVs.

Soon you only sell 50% of the TVs you did the year before.

You are happy because the average price of a TV is still what it was last year.

You see no reason to cut prices even as the unsold pile of TVs goes stale and new models keep being released onto the market.

No need to cut prices.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.