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benjamin

English Newspapers Push Up House Prices

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Because we believe that it is articles like this that are contribute to the Housing Bubble, way after proper analysis indicates that ‘the party’s over’. In particular it sites ‘experts’ without reference and then goes on to ask Estate Agents (realtors) for their view – a bit like asking a Butcher if meat is good for you.

Without these kinds of newspapers the boom and bust cycles would be less extreme and consequently less exciting. They just dig the trough a little deeper on the bust side which is a positive for the patient.

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Unfortunately a little handbag fight between Property Guru and Crash is under Way seems to have dragged the comments section down to playground name calling.

Quite funny! But totally inappropriate :angry:

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I'm sceptical as to whether a ramping newspaper article has any net effect on the price. True some naive individuals may splash out 50p on their daily tabloid and believe they will be £200K richer in ten years and go on a MEW fueled spending spree, however those more financially sophisticated may read this as 'last orders at the bar' for the current housing boom and promptly sell out to the first express reader that comes along. B)

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I'm sceptical as to whether a ramping newspaper article has any net effect on the price. True some naive individuals may splash out 50p on their daily tabloid and believe they will be £200K richer in ten years and go on a MEW fueled spending spree, however those more financially sophisticated may read this as 'last orders at the bar' for the current housing boom and promptly sell out to the first express reader that comes along. B)

How about the more subtle dailing prodding by low quality local rags (who I imagine depend on advertising income from EAs and the like more than the nationals). For instance, the article below was published today in the online Croydon Guardian , I am assuming that it will make its way into actual print as well).

Note that:

(1) The author of the piece, one Mr Kajumba, fails to state that the Rightmove figures are based on asking prices. Is this a mistake or deliberate?

(2) He backs up the Rightmove figure using the impressive Land Registry figure of 8% quarterly growth from Sept 05 to Dec 05. Why did Mr Kajumba use this figure rather than the more recent quarterly figure for Lambeth showing a rather less impressive 1.5% growth in the period Jan 06 to March 06. Was Mr Kajumba simply unaware that these figures exist?

(3) Story is backed up by local estate agents.

(4) Mr Kajumba blithely asserts that HPI is good news for the folks of Lambeth.

Unbiased reporting?

link

House prices soar as demand keeps growing

By Adrian Kajumba

The future looks bright for Lambeth's homeowners after a boom in property prices was recorded last month.

Figures released by property website rightmove.co.uk showed house prices jumped 5 per cent last month the third largest increase in London from £300,594 to £315,691.

And the good news did not end there. The average property price from July 2005 to July 2006 leapt 19 per cent, comfortably topping the 13.8 per cent average increase recorded for the entire capital.

The latest figures show the continued growth in the borough's property prices as figures published earlier this year by the Land Registry showed average house prices rose eight per cent for the period from October to December 2005.

Miles Shipside, Rightmove's commercial director, said: "The number of enquiries for London properties keeps increasing. This, combined with a shortage of supply, pushes prices up.

"It's a sign of a really strong market when the onset of the summer holidays fails to dent demand."

Though Rightmove's figures for Lambeth are not broken down by area, according to estate agents in Crystal Palace, Streatham and West Norwood, the borough-wide figure is being reflected in their patches.

Barney Eden, negotiator for Haart estate agents, Westow Hill, Upper Norwood, said: "According to our staff who were here a few years ago, prices in Crystal Palace are definitely rising.

"It is a desireable area with a village feel to it and people like the Triangle. There is Crystal Palace Park and the tube coming in 2009 will also see prices rise, so I don't think it has reached its peak yet."

Jo McCarthy, Trainee negotiator at Thompson Vales Estate Agents, Streatham High Road, said: "The rises are similar to what we are seeing in Streatham.

"There are a lot of first-time buyers in the area at the moment and we have got a number of homes on offer to the first people who see them, so there is pressure to meet the prices immediately."

Steve Barton, Director of Stephen James, Norwood Road, London, said: "It is very much a sellers market at the moment. There is demand for properties which will only do one thing."

4:06pm today

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Slightly more balanced but in a similar vein (this journo also works for the same organisation).

link

edit : 100th post. woo-hoo!

Edited by SpoonUnit

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Simple, do not buy the rags.

They are all pedling their bullss@t, just to sell copies to the believing public.

I mean if it is in print it must be true :lol:

The power of the media, they run this f@king country B)

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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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