House Prices Fall By Over £4,500 In February

[Guest wrongmove]

House prices fall by over £4,500 in February - NAEA

"The National Association of Estate Agents (NAEA) has released figures from its latest housing market survey, revealing that the residential housing market has begun to feel the full effects of the interest rate rises seen in the past few months.

* AVERAGE ASKING PRICE FEBRUARY 2007 £213,259

* AVERAGE ASKING PRICE JANUARY 2007 £217,955

Both registered buyers and the number of sellers on estate agent's books decreased in February, with housing stock being significantly down from the same period last year.

However, on a positive note the time taken from instruction to completion decreased on average by a week from the same time last year and the number of completed sales remained steady from January 07 and February 06, showing solidity in the market.

Buyers and sellers discouraged by increasing costs

As increasing interest rates start to have bearing on the residential housing market it is apparent that many consumers have decided to remain in situ, rather than embrace spiralling costs of climbing up the home ownership ladder. The number of people looking to buy a home in February decreased by 6% from January with agents reporting an average of 345 registered in comparison to the 367 noted just a month previously.

Housing stock also depreciated further, to a mere 57 properties per agent, down by 13.6% from January and 11% from February 06, when 66 and 64 were the figures respectively reported.

Sales remain steady

Despite the decrease in people looking to move, the number of sales reported per agent remained level from January and February 06 with 13 houses being sold each month. This is a firm indication of a solid market that is continuing to perform well in many parts of the UK.........."

[Guest The_Oldie]

NAEA President, Charles Smailes, comments:

"It is extremely encouraging to see that sales have held pace, despite the decrease of both buyers and sellers, this however is unlikely to continue. I hope this report serves as a warning to the Bank of England that their rate rises have started to take affect, and have for the time being gone far enough.

"The average household budget has been tightened significantly in the last few months with higher council tax, utility bills and mortgage repayments acting as a deterrent to people who would have otherwise looked to take the next step up the ladder.

"I continue to have grave concerns about the lack of first time buyers in the market and would like to take this opportunity to encourage the Chancellor to address the issue of stamp duty thresholds in his imminent budget announcement."

Please, please don't raise the interest rate.

[othello]

That's a huge drop in one month -especially in a month when prices traditionally rise!

Also how come 'sales remain steady' if the Telegraph says the market is 'gridlocked'. They can't both be right!

[adamUK]

That's a huge drop in one month -especially in a month when prices traditionally rise!

Also how come 'sales remain steady' if the Telegraph says the market is 'gridlocked'. They can't both be right!

What happens during the 'spring bounce' will be the key indicator. give it a month or 2...

[Monopoly]

Prices here are on the up!!

[grey shark]

The National Association of Estate Agents (NAEA) has released figures from its latest housing market survey, revealing that the residential housing market has begun to feel the full effects of the interest rate rises seen in the past few months.

* AVERAGE ASKING PRICE FEBRUARY 2007 £213,259

* AVERAGE ASKING PRICE JANUARY 2007 £217,955

Realist Bear , is going to be creaming himself when he reads this

Edited March 17, 2007 by grey shark

[Guest The_Oldie]

I wonder if it will make the front page of the Express?

[dog]

Both registered buyers and the number of sellers on estate agent's books decreased in February, with housing stock being significantly down from the same period last year.

Aha! More evidence of the Telegraph 'Gridlock' story. But a very different spin on the reasons. Come on Foxtons, we need another sound bite to stop any panic.

[grey shark]

House prices fall by over £4,500 in February - NAEA

However, on a positive note the time taken from instruction to completion decreased on average by a week from the same time last year

Main reason why transactions are probably being pushed through quicker is that they don't want people to change there minds in the middle of transactions as more bearish news seeps out like this NAEA report .

[FedupTeddiBear]

However, on a positive note the time taken from instruction to completion decreased on average by a week from the same time last year and the number of completed sales remained steady from January 07 and February 06, showing solidity in the market.

:angry:

Will house price falls EVER be reported as good news - it is for many of us!

[Woot]

House prices fall by over £4,500 in February - NAEA

* AVERAGE ASKING PRICE FEBRUARY 2007 £213,259

* AVERAGE ASKING PRICE JANUARY 2007 £217,955

"

Sorry - I know this should be exciting, but after years of 'house prices doubled again!' type headlines, it's going to take more than a meagre 4.5K to light my fire. Maybe four months of this with significant increases in the drop...

Housing stock also depreciated further, to a mere 57 properties per agent, down by 13.6% from January and 11% from February 06

Is this good or bad news for a HPC? Do we want supply to dry up so prices drop to shift property, or do we want to see the market flooded as people try to unload??!!

Actually all I want is a bit of certainty, and sadly that never appears until after the event!

TD

Edited March 17, 2007 by The Dragon

[Guest grumpy-old-man]

Sorry - I know this should be exciting, but after years of 'house prices doubled again!' type headlines, it's going to take more than a meagre 4.5K to light my fire. Maybe four months of this with significant increases in the drop...

Is this good or bad news for a HPC? Do we want supply to dry up so prices drop to shift property, or do we want to see the market flooded as people try to unload??!!

Actually all I want is a bit of certainty, and sadly that never appears until after the event!

TD

don't worry, every month will get progressively worse, trust me.

[Converted Lurker]

Strange how it flew under the radar yesterday Don't like that image, changed to dead fish now, seemed as though with the excitement of the sub prime 'stuff' some thought it was a good day to bury bad news yesterday. IMHO the NAEA are a trusted source, look at their figures on FTBs, spot on That is a huge fall in asking prices, given that stock is supposed to be low you'd expect a lot trying to take the pi55. Somethings have definitely changed over the past few weeks re: sentiment, since Jan I reckon all aspects of the industy have been flat

Edited March 17, 2007 by Converted Lurker

[ImA20SomethingGetMeOutOfHere]

Sorry - I know this should be exciting, but after years of 'house prices doubled again!' type headlines, it's going to take more than a meagre 4.5K to light my fire. Maybe four months of this with significant increases in the drop...

Is this good or bad news for a HPC? Do we want supply to dry up so prices drop to shift property, or do we want to see the market flooded as people try to unload??!!

Actually all I want is a bit of certainty, and sadly that never appears until after the event!

TD

Perhaps it's worth pointing out that 12 months of £4,500 falls every month would wipe £54,000 off of the average asking price.

[Woot]

Perhaps it's worth pointing out that 12 months of £4,500 falls every month would wipe £54,000 off of the average asking price.

Now that would be good news...

TD

[tother]

being the cynic I am...could it be an early release to try and convince the BoE that recent IR rises have already started to have some effect?

hope not ! !

[Guest The_Oldie]

Full NAEA report is here...

http://www.naea.co.uk/about/latest_news_de...19&PageNo=1

Including regional comments from members.

You can download the report, including graphs, in Word format (although it says pdf).

“Transactions and instructions in Devon increased markedly in February. But prices are still sensitive and there is little of the ‘boom’ that some in the media still think is the norm. “People are beginning to enquire about Home Information Packs, but virtually no one seems to realise that they will be unable to place their houses up for sale without a pack; when they are told the news it is usually met with incredulity.”

[Oliver Sutton]

Somethings have definitely changed over the past few weeks re: sentiment, since Jan I reckon all aspects of the industy have been flat

This is purely anecdotal but just dropped my keys off at the estate agent in Reading and asked how the market was. She seemed a lot more subdued than when i put the house on the market just before xmas.

Then it was all - "it's mental round here", "sealed bids" etc,etc.

[Wonga Wallah]

This is purely anecdotal but just dropped my keys off at the estate agent in Reading and asked how the market was. She seemed a lot more subdued than when i put the house on the market just before xmas.

Then it was all - "it's mental round here", "sealed bids" etc,etc.

Well last week, the sun's been out and Easter is round the corner. If this doesn't create a spring bounce, then the market is definitely tanking big-time.

Edited March 17, 2007 by Wonga Wallah

[Guest AuntJess]

Well I don't think that the little 'flurry' of house buying that went on a few weeks ago, is anything to get bent out of shape about. I think that was down to vendors wanting to get rid before they have to produce Gordy's home owner pack thingy in June, and buyers panicking about the 'rises' that were being spouted off in the tabloids.

Once buyers realise that things are slowing... and then dropping, they will sit back and wait for the vendors to drop their prices... I hope. You gotta wait till you 'see the whites of their eyes' and not give in to nerves.

This will be vary widely, IMO, ranging from those desperate to sell to move due to work etc. and those who have inherited granny's house, fondly imagining they can sit back and wait for the market to 'recover', thus keeping the price sky-high.

Oh to be a fly on the wall when they realise their wait has cost them...more.

Edited March 17, 2007 by AuntJess

[skhudy]

Sorry for stating the obvious, but these are drops in asking prices not selling prices? Estate agents have been pricing property too high for a while.

Average selling prices were set to break 200k weren't they, so the asking figures touted ~215k are just showing estate agents are becoming more realistic when marketing property, this isn't showing a crash

[Nick..]

I'm so fed up renting, I looked into buying again recently. I care not about potential investments and short term drops in price, as I just want somewhere to live

The advisor said "we can get you 5 times you salary, x percent fixed, blah blah", 5x salary too much obviously, but thought I'd have a look round at what I could get for that 225 price range around here, faceless new build flats, or scabby 1 bed starter homes, or even worse 2 bed semis in shitholes

It only takes one day of looking into the situation to realise how ******ing ridiculous it all is. I'm not saying I should be entitled to anything other than a 2 bed new build, hell I'd jump at the oppurtunity, but for 5 times my salary and over half of my 2500 take home pay?

Looks like more sitting on the sidelines

[Guest AuntJess]

Transactions and instructions in Devon increased markedly in February. But prices are still sensitive and there is little of the ‘boom’ that some in the media still think is the norm. “People are beginning to enquire about Home Information Packs, but virtually no one seems to realise that they will be unable to place their houses up for sale without a pack; when they are told the news it is usually met with incredulity.”

Devonians do tend to think they can ride out any housing storm as I was told by an EA that down here the houses hold their price well in any sales 'dip'.. However I have noted a fair few coming back onto the market after having been 'under offer' and 'SSTC'. I know this is not exactly a rare occurence, but I could not but wonder whether buyers are dropping them like hot cakes at the prospect of a HPC, or whether indeed the buyers for THEIR houses are feeling the pinch... credit-wise.

Time WILL tell.

[deano]

Transactions and instructions in Devon increased markedly in February. But prices are still sensitive and there is little of the ‘boom’ that some in the media still think is the norm. “People are beginning to enquire about Home Information Packs, but virtually no one seems to realise that they will be unable to place their houses up for sale without a pack; when they are told the news it is usually met with incredulity.â€

Reply-

It fundamentally changes the nature of selling. HIPS mean you need money up front to sell and so many only have equity they are put off selling. Anyway HIPS has been reduced too an energy efficiency report [£100], what's the problem.

Devonians do tend to think they can ride out any housing storm as I was told by an EA that down here the houses hold their price well in any sales 'dip'.. However I have noted a fair few coming back onto the market after having been 'under offer' and 'SSTC'. I know this is not exactly a rare occurence, but I could not but wonder whether buyers are dropping them like hot cakes at the prospect of a HPC, or whether indeed the buyers for THEIR houses are feeling the pinch... credit-wise.

Reply-

60% of sales fall through due to the collapse of chains, this was the case 2 years ago and may well be worse now.

Time WILL tell.

Edited March 17, 2007 by deano

[dog]

Estate agents have been pricing property too high for a while.

Six years?