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Jason

Rightmove February +2.7% Mom, +4.0% Yoy

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Info From: http://business.timesonline.co.uk/article/...2048260,00.html

Full report will eventually be here: http://www.rightmove.co.uk/pdf/p/hpi/House...ebruary2006.pdf

Miles Shipside:

"People can see that prices are going up and they need to get on the ladder. Estate agents are saying that, for this time of year, it's the liveliest they have seen for some time."

I knew this report would be positive, but I would have never expected that increase. For me this raises doubts over the accuracy of it's index. I bet they have changed there methodology and included some of the £1billion houses being advertised.

Watch out for the spin tomorrow...

My guess on the headlines:

BBC "Average House Price now more than £200k"

Edited by Jason

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Guest The_Oldie
HOUSE PRICES have risen at their fastest for two years in the past month, a property website claims today, in surprisingly strong figures that raise questions over forecasts of a quiet year in the property market.

Hmmmm....

Rightmove figures are based on asking prices..........asking prices are set by estate agents.............estate agents own Rightmove............Rightmove is floating on the Stock Exchange in a month or so...........

http://www.housepricecrash.co.uk/forum/ind...showtopic=24519

Rightmove.co.uk was launched in spring 2000 and is jointly owned by four of the UK's biggest estate agency chains - Halifax, Countrywide Assured, Royal & Sun Alliance and Connells.

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Hmmmm....

Rightmove figures are based on asking prices..........asking prices are set by estate agents.............estate agents own Rightmove............Rightmove is floating on the Stock Exchange in a month or so......

I'm quite happy with the asking prices rising while the selling prices are falling - it just means people higher and higher up the 'ladder' are starting to spot something might be amiss and starting to sell their BTLs / think about downsizing. It's clear to us at the sharp end, it just takes a while to filter through to those who have genuinely made some money on property in the last few years (I don't deny there are some).

Remember, outstanding mortgages of £967 bn against home values of £3400 bn - independent article - means the stock simply cannot change hands to the next generation at these prices.

Looking at it as a system, the only the way the stock could move on at these prices would be for mortgages for the next generation to be 3.5 times higher than they have been for the last generation (think 12 * annual salary), which a mortgage calculator at 5% tells me is 85% of take home pay. No, hang on, wait, I forgot tax. It's MORE than take home pay. It just doesn't work. And that's if the whole system 'stagnates'.

comments welcome

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Good lord the BBC will have a field day on this one :(

Et voila!

http://news.bbc.co.uk/1/hi/business/4724858.stm

And so the BBC begin to report Rightmove on the very month that it shows an upturn. Quelle coincidence!

Sorry about my French :blink:

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here's an example

my ex's house was valued 18 mths ago at £210k

house prices in the area fell 2% last year according to the Halifax and Land Registry

she has put it up for sale at £240k

it seems that the price of many houses is pushing towards the £250k stamp duty threshold - i have also seen many houses for sale around £270k with 'seller pays proportion of stamp duty' marked on them, obviously expecting near asking price

on the plus side, this will do wonders for interest rates

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Rightmove have changed there methodology:

February 2005 release:

http://www.rightmove.co.uk/pdf/p/hpi/House...ebruary2005.pdf

"To calculate average asking prices for a given week or month, Rightmove.co.uk takes the

initial asking price for all new instructions on the site during the period, but excluding

any properties that are atypical*.

* in practice this means unusually expensive properties that are likely to distort the data

Does it say that in their latest release? NO.

I bet Rightmove are including Million pound houses and all those houses that are listed will silly prices!!!

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If this is true it is terrible news for UK.

The Bank of England will soon be forced to push up interest rates, which will have a negative effect on all the productive parts of the economy.

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Guest Riser

However, Rightmove's figures do not reflect the prices at which properties actually sell.

Edited by Riser

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I've also seen a rise in average asking prices from my own stats from EA websites the last 4 months. Looking more closely, the reason has been that the price of new property coming on the market has been much higher than that leaving the market. In other words, mostly the cheap stuff is selling, pushing up the average asking price of the remaining properties.

My increase is +2.0% for Jan/Feb (Durham, NE). Time on market

has also fallen (first time in a year!) coincident with rightmove, but by only a measly day to 263 days.

Edit: Just noticed Miles Shipside's comment "Buyers are back, particularly at the bottom end of the market", though he doesn't

relate this to why his index went up of course.

Pent

Edited by Pent Vaer

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Good point Pent Vaer... There are a heck of alot of new builds flooding the market - somewhere around 100% more expensive than a comparable re-sell home. Dont forget many builders were geared up to producing 100s of aprtments in antipation of Sipps this spring which isnt going to happen now .

100s of apartments and houses are due for completion this spring where i am.

Edited by notanewmember

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Hmmmm....

Rightmove figures are based on asking prices..........asking prices are set by estate agents.............estate agents own Rightmove............Rightmove is floating on the Stock Exchange in a month or so...........

http://www.housepricecrash.co.uk/forum/ind...showtopic=24519

This is the key - asking prices are VERY different to completed sale prices. My friend has dropped his asking price from 825K to 650K and still no interest. It never ceases to amaze me how people claim to have houses 'worth' 800 grand when there's no-one out there prepared to pay even 650 for it!

These (Hometrack) figures suggest to me another desperate push by vendors and their EAs to get a decent price with a discount 'built in'... ie: asking prices now assume an automatic discount of 10% or so.

It's a sucker's rally. <_<

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I think the VIs are taking a very large shotgun, lifting up their foot and blasting it to pieces. When will they realise that they will not 'kick start' the market but talking prices UP! They quickly need to get prices to more realistic levels then their commissions will start flowing in. The longer they leave it the more sentiment will change and the market is likely to stagnate.

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Not all the agents seem to use rightmove so quite a few properties are missing. Very few of the "posh" agents seem to use it (Knight Frank, Savills, etc). Also, how do they take account of a property which is on with more than one agent?

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Et voila!

http://news.bbc.co.uk/1/hi/business/4724858.stm

And so the BBC begin to report Rightmove on the very month that it shows an upturn. Quelle coincidence!

Sorry about my French :blink:

I also heard him Radio 4 this morning saying "FTBs are coming back to the market, perhaps because they are realising that buying is cheaper than renting!"

I'm furious that he got away with saying that. A house on my street recently sold for £210K. I'm paying £750 pcm rent on the same type of house. The interest payments alone on a £200K mortgage are £833 and that's calculated at 5% interest.

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I also heard him Radio 4 this morning saying "FTBs are coming back to the market, perhaps because they are realising that buying is cheaper than renting!"

I'm furious that he got away with saying that. A house on my street recently sold for £210K. I'm paying £750 pcm rent on the same type of house. The interest payments alone on a £200K mortgage are £833 and that's calculated at 5% interest.

I had financial advice last friday, over £1000 for a 25 year repayment mortgage on my rented house or £730 for an interest only mortgage. Current rent is £625..That guy is off his ******ing trolly!!

Edited by sllabres

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Guest The_Oldie

This is the key - asking prices are VERY different to completed sale prices. My friend has dropped his asking price from 825K to 650K and still no interest. It never ceases to amaze me how people claim to have houses 'worth' 800 grand when there's no-one out there prepared to pay even 650 for it!

I believe that Rightmove figures are based on original asking price. If so, your friends house will show on their figures as 825K :rolleyes:.

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You might not like it, well you are all nearly choking on it, but I've been saying this for a fair few weeks now. It is very, very busy with EAs and asking prices are going up.

Every now and then I go see a few houses - went to go see one this week, the only time they could fit us in was 9.00am on Sunday morning. Now, this was a house thats been on the market over 6 months, so it wasn't a first time rush.

All, the business people I know say that business is booming, they are nearly working flat out, but it is very competitive. There is lots of money sloshing around as well.

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Guest Riser

You might not like it, well you are all nearly choking on it, but I've been saying this for a fair few weeks now. It is very, very busy with EAs and asking prices are going up.

Every now and then I go see a few houses - went to go see one this week, the only time they could fit us in was 9.00am on Sunday morning. Now, this was a house thats been on the market over 6 months, so it wasn't a first time rush.

All, the business people I know say that business is booming, they are nearly working flat out, but it is very competitive. There is lots of money sloshing around as well.

Good luck I really REALLY hope you manage to buy somehwere soon :)

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"It is very, very busy with EAs and asking prices are going up.............. Now, this was a house thats been on the market over 6 months, so it wasn't a first time rush."

Doesn't the above contradict itself slightly? The market busy with plenty of money sloshing around, but this house has been on the market for 6 months & hasn't sold.

It can't be that good then, can it?

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"Rightmove said houses were "flying off the shelves" with the time spent on the market falling from 94 days to 81 days."

http://uk.news.yahoo.com/20022006/344/average-house-costs-200-000.html

"Flying off the shelves?" 81 days......hmmmmm.

What is wrong with this picture? With a stock flotation coming up and the market turning negative what are they going to say? Propaganda will not reverse the economic cycle, never has, never will.

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



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