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Guardian: House Prices Surge In April -- But Mostly In The South

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'House prices surge in April -- but mostly in the south':

http://money.guardian.co.uk/houseprices/st...1765101,00.html

House prices rose at their fastest rate for nearly two years during April, but forecasters said the bounce-back is nearly wholly confined to London and is likely to fizzle out soon.

Property website Hometrack said the average cost of a property rose by 0.6% in April to £163,500, with prices ahead by 1.5% over the past three months. But it warned that house prices remained unchanged across 60% of the country in April and that "there are some early signs that levels of market activity may start to slow in the run-up to the summer".

Last week Nationwide building society reported that the mini-surge in house prices recorded in February and March is already petering out. It said the average house price rose 0.1% in April after a 1.1% jump the month before.

[...snip...]

The Hometrack figures are based on reports from 3,500 estate agents covering 2,200 postcode districts. They also highlighted how the average time to sell a property has fallen to only 4.2 weeks in London, compared to nearly nine weeks in the east Midlands and north-west and seven weeks for England and Wales. Home sellers in London are typically achieving close to 95% of their asking price, compared to a national average of 93%.

[...snip...]

The rise in house prices nationally has given homeowners a typical £40,000 in available assets they could unlock. But there is a big north-south divide in the amount people are worth, according to the data analysts KDB, with households in London having amassed an average of £81,732 in equity, savings and shares, while those in Scotland have only £29,724.

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" Average prices in the capital went up by £800 a week, with the typical property sold for £270,800 compared with £267,588 the month before."

God, if only I hadn't bought that £119 iPod 6 months ago! :rolleyes:

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For me these reports simply elicit a profound sense of 'deja vu'.

They are scarily reminiscent of the stuff pumped out between 1989 and 1992. The only thing we learn from history is that we learn nothing from history. The 20 and 30 somethings who churn out this bilge are simply too young to remember the carnage caused by the last property crash.

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House prices rose at their fastest rate for nearly two years during April, but forecasters said the bounce-back is nearly wholly confined to London and is likely to fizzle out soon.

read as "please don't put up the rates !"

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full report

http://www.hometrack.co.uk/press/National%...pril%202006.pdf

So- you could have bought at there national price last month at £162500 – and now one month later at £163500 – anyone waiting has just lost a grand – not exactly a crash – I personally expect next month to be much the same – anyone else got a grand to spare

Edited by look to the past

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read as "please don't put up the rates !"

Yes - the VIs have been playing a very clever game this past 6 months.. on the one hand their monthly house price reports have celebrated an increase in prices as they see it - but at the same time then playing it down, so the BoE doesn't give it too much attention.

The VIs are utterly pathetic.

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This is the best bit......are they getting us ready for something ???????

Whilst house prices have moved higher over April there has been a slowdown in the proportion of the postcodes registering price rises. Given the affordability pressures across the market and limited impetus for house growth in the regions away from London we expect levels of market activity and growth to slow in the run up to the summer World Cup

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Before we get too despondent / excited about these figures let us pause for breath and remember that:

· This is less than 1% Y.O.Y

· This rise is mostly confined to London – where the market is distorted by *ankers bonuses ( now mostly spent).

· Money in a deposit account has been paying 5%

· Inflation is at least 2.5%

· In real terms this is still a fall.

· Hometracks figures only went positive about 2-3 months ago, prior to that they were showing falls Y.O.Y – by my reckoning they are still about 4% down from summer 2004.

· Hometrack, RICS and N.Wide all reckon this latest ( much hyped) surge is running out of steam and is unsustainable.

· This is the height of the buying season.

· Sentiment on interest rates is beginning to turn.

· The money markets are forcing long term rates up regardless of what the BOE does.

· Global interest rates are rising and excess liquidity is being drained.

· It seems that the global financial imbalances are just beginning to unwind.

· The situation in Iran seems to be going only one way and with it the price of oil – the implications of which are rising inflation and interest rates.

· All asset classes are currently overvalued.

Keep smiling – the fat lady is having a final gargle before making her entrance.

So just keep in mind the bigger picture and hold your nerve.

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I am of the view interest rate rises are the only thing that can stop this boom, unfortunately there is no political will whatsoever to do so. Savers and the sensible are screwed under Labour.

Edited by simon99

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Especially for the Bank Holiday, muppets.

http://channels.aolsvc.co.uk/news/article....n&p=news&c=news

I am of the view interest rate rises are the only thing that can stop this boom, unfortunately there is no political will whatsoever to do so. Savers and the sensible are screwed under Labour.

Not so. I think the market will collapse under its own weight regardless of interest rates. If they increase, it will simply add to the pressure.

Edited by Buffer Bear

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Guest Baffled_by_it_all

full report

http://www.hometrack.co.uk/press/National%...pril%202006.pdf

So- you could have bought at there national price last month at £162500 – and now one month later at £163500 – anyone waiting has just lost a grand – not exactly a crash – I personally expect next month to be much the same – anyone else got a grand to spare

I take it you're being ironic. If not, I suggest you take your car out for a drive a let it run out of petrol. It'll give few sputters before the engine finally dies - a nice simple practical example for you.

Either that or look at the wiki from last time...

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I think the most extraordinary thing about the Hometrack figures is the differences across London boroughs.

The growth is not a London surge - it is an inner London surge obviously boosted by city bonuses (and most Londoners live in outer London!).

Prices in the 2012 Olympic boroughs - Newham - +0.1%, Greenwich - no change and Waltham Forest +0.3% - which ought to be seeing the biggest gains given the supposed long term prospects are barely moving at all.

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Guest Fiddlesticks

I think the most extraordinary thing about the Hometrack figures is the differences across London boroughs.

The growth is not a London surge - it is an inner London surge obviously boosted by city bonuses (and most Londoners live in outer London!).

Prices in the 2012 Olympic boroughs - Newham - +0.1%, Greenwich - no change and Waltham Forest +0.3% - which ought to be seeing the biggest gains given the supposed long term prospects are barely moving at all.

I'm glad to see this - I do think the London market is being badly distorted by the bonus effect. Even within inner London I would say the 'smarter' places are selling easily, but stuff which the bankers might not think good enough seems to be sticking (from my casual level of observation).

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



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