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Home Sellers Lower Asking Prices

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http://www.in2perspective.com/nr/2006/08/h...king-prices.jsp

Home sellers lower asking prices

By Laurie Osborne, Editor
Published 11th Aug 2006, (a Friday) at 12:00PM
After three consecutive months of minor rises, asking prices in England and Wales were knocked back by 0.6%, according to the latest Asking Price Index report from Home.co.uk.
Such price cutting behaviour underlines the highly price sensitive nature of the current housing market. Buyer affordability constraints are again creating sufficient downward pressure on prices to force sellers to discount their asking prices.
Bad news for sellers perhaps
, but the changing nature of the market offers a glimmer of hope to aspirant first time buyers. For several years now, many thousands have been unable to get on the first rung of the property ladder and could only look on as prices soared out of reach. Finally the tide is turning, albeit slowly, as house prices in most regions are now moving in the right direction for those that represent the ‘life-blood’ of the market, nominally and in real terms.
Indeed, asking price inflation, in the formerly strong northern regions, is entering negative territory.
The report from Home.co.uk reveals that, over the past six months, asking prices in the North, North West and Yorkshire & Humber were hit by falls of 2.8%, 1.9% and 2.1%, respectively.
Greater London faired no better, registering a 2.7% drop over the same period. Even Scottish asking prices are under pressure, registering the first significant drop (3.4%) in the last eighteen months, suggesting the long run of rising house prices has peaked north of the border.
Whilst eight out of England’s nine regions showed a fall,
over the last six months, asking prices moved ahead in the South West and Wales by 1.6% and 4.3% respectively. These regions’ prices are likely to be buoyed by the seasonal holiday home market, underpinned by the traditional influx of summer visitors.
Perhaps the most alarming news, from Home.co.uk, is that asking prices have fallen even further behind the rate of inflation. In real terms, asking prices are going backwards at an annual rate of 4.7% relative to the Consumer Price Index (CPI). Historically, periods of high inflation spell disaster for house prices, since the main weapon in inflation fire fighting is interest rate rises.

With asking prices falling behind the rate of inflation property becomes a bad investment. Time to get out while you can :o

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http://www.in2perspective.com/nr/2006/08/h...king-prices.jsp

Home sellers lower asking prices

By Laurie Osborne, Editor
Published 11th Aug 2006, (a Friday) at 12:00PM
After three consecutive months of minor rises, asking prices in England and Wales were knocked back by 0.6%, according to the latest Asking Price Index report from Home.co.uk.
Such price cutting behaviour underlines the highly price sensitive nature of the current housing market. Buyer affordability constraints are again creating sufficient downward pressure on prices to force sellers to discount their asking prices.
Bad news for sellers perhaps
, but the changing nature of the market offers a glimmer of hope to aspirant first time buyers. For several years now, many thousands have been unable to get on the first rung of the property ladder and could only look on as prices soared out of reach. Finally the tide is turning, albeit slowly, as house prices in most regions are now moving in the right direction for those that represent the ‘life-blood’ of the market, nominally and in real terms.
Indeed, asking price inflation, in the formerly strong northern regions, is entering negative territory.
The report from Home.co.uk reveals that, over the past six months, asking prices in the North, North West and Yorkshire & Humber were hit by falls of 2.8%, 1.9% and 2.1%, respectively.
Greater London faired no better, registering a 2.7% drop over the same period. Even Scottish asking prices are under pressure, registering the first significant drop (3.4%) in the last eighteen months, suggesting the long run of rising house prices has peaked north of the border.
Whilst eight out of England’s nine regions showed a fall,
over the last six months, asking prices moved ahead in the South West and Wales by 1.6% and 4.3% respectively. These regions’ prices are likely to be buoyed by the seasonal holiday home market, underpinned by the traditional influx of summer visitors.
Perhaps the most alarming news, from Home.co.uk, is that asking prices have fallen even further behind the rate of inflation. In real terms, asking prices are going backwards at an annual rate of 4.7% relative to the Consumer Price Index (CPI). Historically, periods of high inflation spell disaster for house prices, since the main weapon in inflation fire fighting is interest rate rises.

With asking prices falling behind the rate of inflation property becomes a bad investment. Time to get out while you can :o

I think houses may drop back to the rate they were before the IR cut last year on my post with the link "houses selling well here" i notice some reductions. A house opposite mine has been reduced by £5,000. Before the IR cut last year they were approx 105,000 they were asking 124,950 last week for the house its now on at 119,950. Could be due to the rise in stamp duty buyers trying take advantage perhaps also the rise in IR and some uncertainty perhaps. :ph34r:

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Market sentiment has certained changed alot.

The bubble is making a 'hissing' sound....will it pop or slowly deflate?

:huh:

There's one area where I must de-couple from my fellow bears - that of asking prices. I'm with Rightmove in that asking prices are a good lead indicator of prices whereas LR figures, though cast iron are looking into the past.

So when I see that ASKING prices are falling, it pleases me no end as it should do all of us.

Bubbles always hiss-deflate and then, right at the end, go POP.

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  • 332 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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