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First UK Annual Fall in Asking Prices For Seven Years

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New asking prices decline annually across UK for the first time in seven years

https://www.propertyindustryeye.com/new-asking-prices-decline-annually-across-uk-for-the-first-time-in-seven-years/

Asking prices have fallen annually across the UK for the first time in seven years, Rightmove has revealed.

Data from the portal shows new listings this month were priced at £302,023, down 0.2% annually, the first such fall since November 2011.

The figure was also down 1.7% on a monthly basis, the steepest fall for November since 2012.

All regions saw a monthly fall in the price of property coming to the market.

The largest monthly decline was in the south-east with an average 2.1% fall, while new seller asking prices in London dropped by 1.7% and as much as 6.9% on the high-end properties in the centre of the capital.

Average time to sell was flat at 61 days, while average stock per agent was also level at 52.

The report also showed that the number of sales agreed was up just 1% annually in October.

Miles Shipside, housing market analyst for Rightmove, said: “New sellers and their agents are reacting to market forces and lowering their pricing aspirations by more, and sooner than usual.

“Stretched buyer affordability and the cooling markets in the south and in upper price brackets have combined with the ongoing political uncertainty to change pricing optimism into pricing realism.”

Commenting on the report, Brian Murphy, head of lending at the Mortgage Advice Bureau, said: “Given current political and economic headwinds, this may be the result of estate agents providing their clients with pragmatic advice that vendors are taking on board, particularly if they are motivated to move in the short term.”

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1 minute ago, rantnrave said:

New asking prices decline annually across UK for the first time in seven years

https://www.propertyindustryeye.com/new-asking-prices-decline-annually-across-uk-for-the-first-time-in-seven-years/

Asking prices have fallen annually across the UK for the first time in seven years, Rightmove has revealed.

Data from the portal shows new listings this month were priced at £302,023, down 0.2% annually, the first such fall since November 2011.

The figure was also down 1.7% on a monthly basis, the steepest fall for November since 2012.

All regions saw a monthly fall in the price of property coming to the market.

The largest monthly decline was in the south-east with an average 2.1% fall, while new seller asking prices in London dropped by 1.7% and as much as 6.9% on the high-end properties in the centre of the capital.

Average time to sell was flat at 61 days, while average stock per agent was also level at 52.

The report also showed that the number of sales agreed was up just 1% annually in October.

Miles Shipside, housing market analyst for Rightmove, said: “New sellers and their agents are reacting to market forces and lowering their pricing aspirations by more, and sooner than usual.

“Stretched buyer affordability and the cooling markets in the south and in upper price brackets have combined with the ongoing political uncertainty to change pricing optimism into pricing realism.”

Commenting on the report, Brian Murphy, head of lending at the Mortgage Advice Bureau, said: “Given current political and economic headwinds, this may be the result of estate agents providing their clients with pragmatic advice that vendors are taking on board, particularly if they are motivated to move in the short term.”

sums up the property "market"

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Can I congratulate Ros, who oversees PropertyIndustryEye, for providing the only coverage of this report that isn't directly linking the fall to Brexit...

Edited by rantnrave

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More details from  EAToday...

Asking prices fall over £5,200 in largest November drop since 2012

https://www.estateagenttoday.co.uk/breaking-news/2018/11/asking-prices-fall-over-5-200-in-largest-november-drop-since-2012

Rightmove is this morning reporting that the asking price of property coming to market has fallen 1.7 per cent in the past month - that’s a dramatic drop of £5,222 on average, and much more in high-value locations such as London. 

And the portal says that while it’s not unusual for new seller asking prices to fall at this time of year, this is the largest November drop since 2012.

Rightmove believes that the backdrop of continuing political uncertainty, cooling markets in the south of the country and in the upper price sector, have all combined to persuade new sellers to drop asking prices earlier and more deeply than usual. 

“This is a welcome effort by sellers to minimise the usual pre-Christmas market slowdown. Some new-to-the-market sellers and their agents have acted early to try to improve the buying mood and avoid the traditional ‘buyer humbug’ dislike of Christmas housing activity” according to Miles Shipside, Rightmove director and housing market analyst.

He says all regions see a monthly fall in the price of property coming to market, with most of the largest falls in the south. 

The largest monthly faller is the South East with an average 2.1 per cent drop (equal to £8,647 on average. London new seller asking prices drop too by 1.7 per cent.

Shipside observes: “Seven years ago price rises started rippling out from the capital into the commuter belt in the South East. That ripple effect has now been reversed, with some of the London market price re-adjustment reverberating out into the commuter belt. New sellers of property now coming to market in this region have belatedly lowered their price sights. Higher end former hot-spot towns are now among the biggest annual fallers with Rickmansworth (down 7.1 per cent), Esher (falling 6.4 per cent) and Gerrards Cross (a drop of 6.0 per cent) now cold spots following price rises of nearly 40 per cent over the seven preceding years.”

These factors have contributed to the first national year-on-year price fall since November 2011, with the price of newly-marketed property now 0.2 per cent or £607 cheaper than 12 months ago. 

Rightmove claims that with the supply of new-build houses remaining tight, a low interest rate environment combined with near record employment, and average wage increases now rising faster than both CPI inflation and average property prices, the underlying fundamentals for a stable property market remain sound. 

To prove the point, the number of sales agreed by estate agents was up in October 2018 compared to October 2017, albeit by a modest 1.0 per cent.

“While many thought that the down-to-the-wire Brexit deal uncertainty would hold people back from buying, more buyers have actually jumped in. Some buyers see this pre-Christmas price lull as a gift to their negotiations. It proves that people need to get on with their lives and will continue to buy homes if the underlying economic fundamentals remain strong” concludes Shipside.

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Excellent news and a fantastic indicator that mainstream sentiment is definitely changing :)

Very interesting that the EAToday piece mentions the "ripple effect" too.

Edited by ftb_fml

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28 minutes ago, simon2 said:

Wonder if this will make an appearance on the BBC today,.

BBC Business News reporters today are Bill Wilson and Jill Treanor. The latter name is more searchable, and assuming the pictures of her online aren't completely up to date, I would say she is late 40s early 50s. Bill Wilson is too common a name to find a portrait image, but I don't know many under 40s who call themselves Bill. Muck Rack lists him as having worked for several media organisations already, so I doubt he's a spring chicken.

Edited by rantnrave

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On the Count's recent thread asking if the crash had started I said yes.

I know these are asking prices but we've clearly passed the peak. The question is how far and how fast will they fall. 2019 is going to be very interesting.

Also, love the cut and paste bit at the end of the report about lack of supply, full employment,etc., therefore prices will be supported. In which month will such reports no longer be able to contain that without looking totally ridiculous?

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2 hours ago, Dražen Petrović said:

Tempts me even more to try to get numbers of Guardian articles that include Brexit in the link/URL itself even when the story is about something else.

OK, so this one is about house prices and Brexit (only because the journalist made it so, not because the link is as hard as the article claims).

Still don't need that in the URL though.

You wouldn't normally embed a key word for the cause of an event in the news article covering an event.

"uk-farmers-market-best-yet-bumpercrop" - umm no.

Even if Rightmove focusseed only on Brexit as the cause (and they clearly don't) then surely the URL should have been ordered differently 'uk-house-prices-fall-5000-rightmove-november-brexit' ... but no, SEO and Brexit-bonusses-for-editors ... shoddy journalism.

Tis the Guardian, sorry - I don't know what I was expecting.

 

Edited by Aidan Ap Word
Spelling.

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3 hours ago, Voice of Doom said:

Also, love the cut and paste bit at the end of the report about lack of supply, full employment,etc., therefore prices will be supported. In which month will such reports no longer be able to contain that without looking totally ridiculous? 

...don't scare the horses..!  The price of housing increases and if threatened will be supported...your wealth is safe and all is well in the world. 

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Under any other circumstances wouldn't we already have some government props for the market by now? The continuing Brexit débâcle seems to have have paralysed the government and pulled their focus from everything else, including housing.

My feeling is that they'd have to get any props in before sentiment shifts, otherwise they'll have no effect. Is it already too late for props and if not, will Brexit continue to occupy all government activity?

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4 hours ago, ftb_fml said:

Excellent news and a fantastic indicator that mainstream sentiment is definitely changing :)

Good news indeed, but............ it is only good if people take the opportunity to buy at the right time.  This is where so many went wrong last time.  When prices showed signs of stabilising and then increasing they waited thinking  there would be another big drop which did not happen.  

2 hours ago, Aidan Ap Word said:

Tempts me even more to try to get numbers of Guardian articles that include Brexit in the link/URL itself even when the story is about something else.

OMG the guardian is insane on Brexit.  It will be whining about Brexit in 50 years time.  

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1 hour ago, Saving For a Space Ship said:

edit: nothing on 1pm news just now 

Now 2pm and, as far as I can see, not a mention of this news at all anywhere on the BBC news website - not even the Business section.

Now THAT really is beyond a joke.  Fair and impartial indeed.  When prices were rising, no matter how small, it got reported religiously and very quickly. But if they actually fall......

It's almost as if the mindset of the editorial staff in the newsrooms is one of "if we dont talk about it....it wont be real".

Edited by anonguest

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23 minutes ago, Goodafterbad said:

Under any other circumstances wouldn't we already have some government props for the market by now?

Apart from the £750,000,000,000 pledged to banks by Mark Carney during the Mansion House speech earlier this year. Those funds are available without the need for any nod from the government, should banks find themselves in any undefined difficulties.

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3 hours ago, Aidan Ap Word said:

Tempts me even more to try to get numbers of Guardian articles that include Brexit in the link/URL itself even when the story is about something else.

OK, so this one is about house prices and Brexit (only because the journalist made it so, not because the link is as hard as the article claims).

Still don't need that in the URL though.

You wouldn't normally embed a key word for the cause of an event in the news article covering an event.

"uk-farmers-market-best-yet-bumpercrop" - umm no.

Even if Rightmove focusseed only on Brexit as the cause (and they clearly don't) then surely the URL should have been ordered differently 'uk-house-prices-fall-5000-rightmove-november-brexit' ... but no, SEO and Brexit-bonusses-for-editors ... shoddy journalism.

Tis the Guardian, sorry - I don't know what I was expecting.

I see your point and you are right.

 

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2 hours ago, happyguy said:

Good news indeed, but............ it is only good if people take the opportunity to buy at the right time.  This is where so many went wrong last time.  When prices showed signs of stabilising and then increasing they waited thinking  there would be another big drop which did not happen.  

OMG the guardian is insane on Brexit.  It will be whining about Brexit in 50 years time.  

Now fatcher's dead I suppose they need another bogeyman

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  • 244 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%



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