Jump to content
House Price Crash Forum

Recommended Posts

Sky News

PROPERTY PRICES SLIDE

Property prices fell again last month.

That makes it the fifth consecutive monthly fall, according to the National Association of Estate Agents.

But the number of buyers rose slightly as househunters tested the market for bargains, UK estate agents said.

The findings support Thursday's projections from the Bank of England's quarterly inflation report that there will be "some modest adjustment" in house prices for a period of time.

House prices are now on average 6.05% higher than they were this time last year - the lowest annual rate of change seen since the property boom began, the NAEA said.

All indicators showed that there were slightly more buyers than last month, but still a lower number than in the summer months or earlier in the year, it reported.

In addition, the number of transactions remained low, showing that although buyers are starting to enter the market again as prices fall, many will not commit.

Estate agents across the country were also reporting that only houses with a reasonable asking price are selling.

The average discount from asking price remains relatively high level at about 5%.

There was a slight increase in the number of first time buyers than in the previous two months, but it was still historically a low proportion of 11.43%.

The relationship between a falling sales market and a rising rental market was illustrated with strong figures from lettings agents indicating fewer vacant properties.

Average rents were up 0.67% in the last month and 3.2% over the last year as potential buyers decide to rent instead.

Link to post
Share on other sites

I love this fantasy:

"Buyers are returning, and although there are not as many sales going through at the moment, once they realize there will not be any further significant falls, the market will pick up," Richard Hair, President of the NAEA said.

I see nothing in the release to support his prediction there won't be further significant falls.

Link to post
Share on other sites
I love this fantasy:

    "Buyers are returning, and although there are not as many sales going through at the moment, once they realize there will not be any further significant falls, the market will pick up," Richard Hair, President of the NAEA said.

I see nothing in the release to support his prediction there won't be further significant falls.

Probably covered before/elsewhere, but are there any recorded stats. which show a price fall for say 9 months ( July '04 to March '05) followed by rising prices? This would seem to be the bull's logic.

Link to post
Share on other sites

No. For the majority of FTBs the market would need to drop 30%+ for them even to be ABLE to buy, never mind WILLING to sign up for financial suicide. Even if they did return they would not stabilise the market. The bottom rung properties which FTBs generally go for would not crash, but what would hold up the rest of the market?? Plus FTBs would have to be stupid to buy while prices are still falling, "never catch a falling knife" etc.

Link to post
Share on other sites
No. For the majority of FTBs the market would need to drop 30%+ for them even to be ABLE to buy, never mind WILLING to sign up for financial suicide.

true m8, but as the NAEA said, that buyers seem to be returning to the market again, would this not be reverse cycle of them returning gradually though, hence slowing the market down from falling further?

Link to post
Share on other sites

The key really is the BTL'ers. There is no property market or property ladder as we know it without sufficient demand for "lower" priced property.

With FTB's low it needs considerable input from BTL, or very large numbers of downsizers willing to buy the cr&ppy end of the ladder - which they generally don't.

Nope, the EA's destroyed their own market when they decided to punt unaffordable property to BTL, having outpriced the natural market. Tough, better get used to it. :angry:

Link to post
Share on other sites

5 months of falling prices in no blip. It marks the starts of a long bear market. According to KoN on TMF(http://boards.fool.co.uk/Message.asp?mid=8912898), prices have fallen £9,321 since the end of July - that is more than the average take home wage, so people have effectively been losing more money on their houses than they are bringing home in their paypackets. That is a sobering thought.

Link to post
Share on other sites

Thanks, I had seen that, I was trying to find a full report as like others I would love to know how the minus 1.6% is broken down regionaly. I also seem to recall detailed reports in the past (not sure if NAEA or RICS) where there were sentiment comments from EA's around the country, and details of supply/demand status.

Maybe things are so bad that they can only give the headlines!

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...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • 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.