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Telegraph Says House Prices To Rise (today)


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House prices to rise despite rate move

By Caroline Muspratt

Last Updated: 1:10pm GMT 22/01/2007

UK property website Rightmove is sticking to its forecast that house prices will increase 6pc across the country in 2007, despite the shock increase in interest rates this month.

The amount of properties up for sale is at its lowest for three years and 18pc down on the level of January 2006, helping to lift average prices 0.5pc so far this month, the website said today. The comments from Rightmove echo that of some mortgage lenders and homebuilders who expect a general shortage of housing to more than compensate for higher interest rates.

Miles Shipside, Rightmove’s commercial director, said: “Where there are shortages of property, prices will keep increasing and properties will keep selling, in spite of the latest interest rate rise.”

The Bank of England earlier this month moved rates up to 5.25pc and expressed concerns that inflation will accelerate. The Bank’s fears were confirmed last week, when a report revealed that inflation hit 3pc in December, the highest level for at least a decade.

The minutes of the meeting at which the Bank’s policy makers made its decision will be released on Wednesday and closely watched for any signs that rates may go up again. Rightmove said that increases in London helped lead a 13.5pc increase in the cost of an average home in the last 12 months.

The average price rose to £222,859 in January. In London, the average asking price of a property rose 22.4pc over the past year to £356,192, a record level.

Rightmove said: “House price rises in London are outperforming the rest of the country to such an extent that the average increase in 2006 alone in London’s top five performing boroughs now exceeds the total value of an average property for sale in England and Wales.”

The biggest increase was seen in Kensington and Chelsea, where the average price rose 61.8pc to £1.15m over the past year. Mr Shipside did warn that further rapid increases in interest rates is “a high risk strategy for the economy given the possibility of rates going too high.”

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Hardly surprising is it? You guys go on about a price crash, i tell you how caqn prices crash when demand is so high for houses?

Even with rate rises, prices are up.

My advice to you lot is get yourself a house if you can afford it. Dont wait around for a crash, as it wont happen.

I know i'm gona get abuse from the usual lot, but you know, i see prices rising all the time. You are just pricing yourselves out further and futher.

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Hardly surprising is it? You guys go on about a price crash, i tell you how caqn prices crash when demand is so high for houses?

Even with rate rises, prices are up.

My advice to you lot is get yourself a house if you can afford it. Dont wait around for a crash, as it wont happen.

I know i'm gona get abuse from the usual lot, but you know, i see prices rising all the time. You are just pricing yourselves out further and futher.

Here's 2 of the headlines from 1988 just a few months before the crash:

28 jun 1998 - The Times - BUILDERS APPEAL FOR MORE LAND AS HOUSE PRICES SOAR AGAIN.

17 sep 1988 - The Times - COUNTRY HOUSE PRICES TO RISE FURTHER (country house prices in Britain have risen by 33% SO FAR this year) :lol:

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This year is probably going to be a strange one. There will likely be a glut of property on the market before June (and HIPs), followed by a dry patch. Not many people will be willing to test the water if they have to pay up front for a HIP. Squeeze on supply usually means higher prices.

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Here's 2 of the headlines from 1988 just a few months before the crash:

28 jun 1998 - The Times - BUILDERS APPEAL FOR MORE LAND AS HOUSE PRICES SOAR AGAIN.

17 sep 1988 - The Times - COUNTRY HOUSE PRICES TO RISE FURTHER (country house prices in Britain have risen by 33% SO FAR this year) :lol:

dog box

thats 1988.

this is 2007.

Market condiitons are very very different. Demand for housing is VERY high. Supply is short.

Price crash?

No chance mate.

You guys look into charts and graphs far too much.

just look at today, now, and see the truth.

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dog box

thats 1988.

this is 2007.

Market condiitons are very very different. Demand for housing is VERY high. Supply is short.

Price crash?

No chance mate.

You guys look into charts and graphs far too much.

just look at today, now, and see the truth.

dogbox is usually on the bullish side of the ''neither camp''so he is definitely not one of the bears as you have wrongly inferred.This is not the usual dogbox post,but at least it shows he is perhaps neutral after all.

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dog box

thats 1988.

this is 2007.

Market condiitons are very very different. Demand for housing is VERY high. Supply is short.

Price crash?

No chance mate.

You guys look into charts and graphs far too much.

just look at today, now, and see the truth.

dogbox is usually on the bullish side of the ''neither camp''so he is definitely not one of the bears as you have wrongly inferred.This is not the usual dogbox post,but at least it shows he is perhaps neutral after all.

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dogbox is usually on the bullish side of the ''neither camp''so he is definitely not one of the bears as you have wrongly inferred.This is not the usual dogbox post,but at least it shows he is perhaps neutral after all.

Cans of Coca Cola and Vimto were 15p back in 1988. Does he mean cans of drink will also crash in price? How about walkers crisps which were about 7p back than??

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Hardly surprising is it? You guys go on about a price crash, i tell you how caqn prices crash when demand is so high for houses?

Even with rate rises, prices are up.

My advice to you lot is get yourself a house if you can afford it. Dont wait around for a crash, as it wont happen.

I know i'm gona get abuse from the usual lot, but you know, i see prices rising all the time. You are just pricing yourselves out further and futher.

You should buy some more BTLs before they are all gone!

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Cans of Coca Cola and Vimto were 15p back in 1988. Does he mean cans of drink will also crash in price? How about walkers crisps which were about 7p back than??

Get yourself down your local supermarket.

Ironcially the price of pepsi cola has crashed recently. Bad press etc etc.

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dog box

thats 1988.

this is 2007.

Market condiitons are very very different. Demand for housing is VERY high. Supply is short.

Price crash?

No chance mate.

You guys look into charts and graphs far too much.

just look at today, now, and see the truth.

I have to nominate this post today's most jejune comment. Particularly breathtaking was the opening:

thats 1988.

this is 2007

Will come up with any more brilliant observations?

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This year is probably going to be a strange one. There will likely be a glut of property on the market before June (and HIPs), followed by a dry patch. Not many people will be willing to test the water if they have to pay up front for a HIP. Squeeze on supply usually means higher prices.

Usually yes, but not in this market. Here you see properties being sold by people with no need to sell, just speculating. Fishing if you like, with inexhaustible patience. They can ask 400k for a 200k house. If they don't get it they don't mind. If they do they are happy. Remove these daft numbers from the ads and the sales then you will start to see a correction. Why is it that only the buyers at the moment make a financial commitment to the deal (surveys etc)? Once the sellers commit financially to the sale, then it should be all over.

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13% rise nationwide

22% rise in London.

Crash is coming!!

I've said it before. We've just had an abnormally high 198,000 mortgage approvals cited by the Bank Of England at the end of last year. There isn't going to be no house buying this year.

However, things do look very 1988, abnormally high number of transactions taking place in a rising interest rate environment.

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