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Reuters: Property Transactions Worst For 5 Months


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HOLA441

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!

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HOLA442

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.

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HOLA443

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.

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HOLA444

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.

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HOLA445
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HOLA447

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.

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HOLA4410

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.

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HOLA4411
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HOLA4412
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HOLA4413

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

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HOLA4414

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.

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HOLA4415

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
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HOLA4416

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.

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