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

Reuters: Property Transactions Worst For 5 Months

Recommended Posts

http://investing.reuters.co.uk/news/newsAr...IN-PROPERTY.xml

LONDON (Reuters) -
The number of property transactions in England and Wales slipped to its lowest in five months in January, tax authority data showed on Tuesday
.

How quickly the doom and gloom spread by Rightmove's theoretical "asking price" data is dispelled!

Share this post


Link to post
Share on other sites

http://investing.reuters.co.uk/news/newsAr...IN-PROPERTY.xml

LONDON (Reuters) -
The number of property transactions in England and Wales slipped to its lowest in five months in January, tax authority data showed on Tuesday
.

How quickly the doom and gloom spread by Rightmove's theoretical "asking price" data is dispelled!

Just look out your window. It's so obvious to see despite the spin from Rightmove et al. that properties are not moving.

Share this post


Link to post
Share on other sites

http://investing.reuters.co.uk/news/newsAr...IN-PROPERTY.xml

LONDON (Reuters) -
The number of property transactions in England and Wales slipped to its lowest in five months in January, tax authority data showed on Tuesday
.

How quickly the doom and gloom spread by Rightmove's theoretical "asking price" data is dispelled!

People put off purchases during the Summer because of holidays etc and during Winter there is xmas and new year.

This means property transactions often dip to low points during the Summer and during the Winter so what's your point?

However the point I'd like to make is that number of property transactions is UP NEARLY 30% ON THIS TIME LAST YEAR.

Share this post


Link to post
Share on other sites

People put off purchases during the Summer because of holidays etc and during Winter there is xmas and new year.

This means property transactions often dip to low points during the Summer and during the Winter so what's your point?

However the point I'd like to make is that number of property transactions is UP NEARLY 30% ON THIS TIME LAST YEAR.

"HM Revenue and Customs said the number of property transactions fell to 133,000 in January in seasonally-adjusted terms from 154,000 in December, revised from an originally reported 153,000."

The January 2005 baseline was extremely low.

Share this post


Link to post
Share on other sites

Just to keep it clear...

Seasonally-adjusted figures for England and Wales showed a similar trend. On

this basis, there were 133,000 transactions in January, down from 154,000 in

December but much higher than the 103,000 recorded in January 2005.

Share this post


Link to post
Share on other sites

Could the increase in transactions be due to vendors dropping their prices?

My guess is that December is traditionally a very slow time for house sales due to Christmas etc. You often see a New Year pick up and as the figures show a New Year slow-down there is evidence that the market is, in fact, slowing down! Lower prices might help but most FTBs are in "wait and see" mode. The longer they wait the more they will see.

Share this post


Link to post
Share on other sites

RB: I was thinking more re the YOY change. Although the rate cut might also have produced a suckers rally I guess.

I am not sure but weren't the January 2005 figures dismal? That would make even a good size increase less meaningful? The best part is the fact that January was worse than December indicating that the New Year bounce did not happen.

Share this post


Link to post
Share on other sites

I just checked the BBC website--they appear to be ignoring this news. Perhaps they are reluctant to refer to it after the Rightmove story yesterday. The government statistics might confuse the Sheeple.

Share this post


Link to post
Share on other sites

I am not sure but weren't the January 2005 figures dismal? That would make even a good size increase less meaningful? The best part is the fact that January was worse than December indicating that the New Year bounce did not happen.

Hi,

Also, rising house transactions do not mean rising prices in a falling market. Check the land registry transactions records for between around 1991-1994. The market was in sharp decline but house transactions were moderately increasing. As prices fall to newer lows, new buyers are tempted back in until equilibrium in wages-prices is approached, accompanied by gazundering. A lot of stats contradicted themselves during the last crash, one of the reasons it took so many people by surprise. But then it wouldn't be a crash if it was that easy to read, right?

Boomer

Share this post


Link to post
Share on other sites

The market can't correct without transactions. As the falls gather pace transactions should increase. In general terms I'd exect you could spot the central stagnation point as transactions slow to stagnation and then increase as the market falls away from stagnation.

Of course ill advised rate cuts / lenging / fools rally's etc will muddy the picture a bit.

Share this post


Link to post
Share on other sites

This can't be true! It goes directly against what Miles Slipshot from Rightmove was saying yesterday :-

"Prices have surged as the number of properties on the market has fallen - leading to a fierce bidding war among desperate buyers"

"'Buyers are back, particularly at the lower end of the market as first-time buyers are finding it can actually be cheaper to pay a mortgage than to pay rent"

You mean it's all bull$shit, would they lie to us? :lol:

Edited by BuyingBear

Share this post


Link to post
Share on other sites

Hi,

It's all there, printed in black and white in the land registry. I posted here a while back as well an article from a few years back, by the BoE - I think it's still on their site in the archives - all about Gazundering and the role of downward pressure excerted by buyers in a falling market that also confirmed nicely that rising transactions are common in a falling market and often signal breakdowns to a new, lower price level, in much the same way as guzumping drives a rising market.

Share this post


Link to post
Share on other sites

Just checked BBC website--still no mention of this news! You would think that official government figures showing no resurgance in house prices contrary to Rightmove's claims would be public interest? Maybe BBC just forgot? Do you think?

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.

  • 302 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.