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Rics: Surveyors See House Price Falls In September

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Surveyors see house price falls

House prices are continuing to turn down, says the Royal Institution of Chartered Surveyors (Rics).

Its latest survey says UK house prices in September generally fell again, with more of its members reporting a fall in prices locally than an increase.

It said enquiries from new buyers had fallen for the tenth month in a row.

Rics blamed the downward trend on a combination of factors, such as higher interest rates and lenders tightening their lending criteria.

"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.

"The combination of rising interest rates, the introduction of home information packs (Hips) and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers," he added.

Most commentators now agree that the property market is now responding to the five rate rises imposed by the Bank of England since the summer of 2006.

This week the Council of Mortgage lenders (CML) said that the burden of repaying the interest on mortgages was at its worst in 16 years for first-time-buyers, and at its worst in 15 years for people moving house.

It predicted the situation would get worse in the coming months.

"As lenders move to price for the risk they are taking on, mortgages are set to become more expensive for customers who have poorer credit histories," said the CML's director general Michael Coogan.

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/7037962.stm

Published: 2007/10/10 23:00:52 GMT

© BBC MMVII

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Rics are becoming very bearish recently. Do you think their members are starting to find work drying up? :lol:

I am sure they have a vested interest in vendors dropping prices to get transactions moving.

There must of been a rise in the amount of surveyors over the last 10 years that are now fighting over dwindling instructions.

Edited by equitystasher

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Records are always exciting, especially in relation to house price falls.

http://uk.biz.yahoo.com/10102007/323/uk-se...ggest-fall.html

UK Sept house price balance -14.6 pct, biggest fall since Sept 2005 - RICS
LONDON (Thomson Financial) - House prices in the UK are falling at their fastest rate in two years, a leading industry group said today.
In its monthly survey of the housing market, the Royal Institution of Chartered Surveyors said (Advertisement)
14.6 pct more of its members reported a fall than a rise in house prices.

As Del Boy's Great great great etc. grandfather would have said: Lovlius Jubblicus.

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"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.

errr... didn't Darling downgrade growth forecasts for next year to 2.25% and isn't this below trend?

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errr... didn't Darling downgrade growth forecasts for next year to 2.25% and isn't this below trend?

Jeeesus I'm getting more confused by the day :blink::blink:

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RICS story no longer main item on BBC home page and business page - quickly downgraded to support status. :(

Yet if prices had been rising it would have been up there taking star billing for 24 hours. :angry:

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RICS story no longer main item on BBC home page and business page - quickly downgraded to support status. :(

Yet if prices had been rising it would have been up there taking star billing for 24 hours. :angry:

<yawn>

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The short version from the early press reports, RICS Sept – clear drop in the surveyor balance but the sales-to-stock is still holding up.

Surveyor balance: -14.6% SA (-3.3% Aug, revised down)

Sales-to-stock ratio: 38.4% (37.7% Aug)

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Don't worry... this will be headline news today. Shock therapy to the sheeple and to the markets (the most deluded sheeple).

And now we wait... not for a downturn in the market... but for the bottom and a good time to buy...

To be honest the housing market is rather predictable and boring at the moment.

Time to think about profitable investments in this downturn while fools wait for the three month recession to end...

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RICS story no longer main item on BBC home page and business page - quickly downgraded to support status. :(

Yet if prices had been rising it would have been up there taking star billing for 24 hours. :angry:

I love the fact that the person who wrote the article uses the phrase house prices are continuing "to turn down" instead of just giving it to us straight! Would he or she write house prices are continuing "to turn up" if they were rising?

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Press association http://ukpress.google.com/article/ALeqM5hT...qHWoKFicOFLb6zg

RICS spokesman Jeremy Leaf said: "Although house prices continue to fall, the underlying economy remains strong. A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant.".

BBC http://news.bbc.co.uk/1/hi/business/7037962.stm

"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.

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We are now entering a crucial stage. To get a fastpaced crash, we will need some kind of economic shock imo. This can of course be an economic downturn that may or may not happen next year (most bets are that it will, although we dont know at this stage by how much). Or it could happen within the belly of the beast itself: the SP resets that begin in earnest in q1 08, or the new debt paradigm that has tightened lending criteria and that has helped blow the wheels off the MEW-wagon.

we shall see.....

--------------------------

http://news.bbc.co.uk/1/hi/business/7037962.stm

Surveyors see house price falls

For Sale signs

The property market reached a turning point over the summer

House prices are continuing to turn down, says the Royal Institution of Chartered Surveyors (Rics).

Its latest survey says UK house prices in September generally fell again, with more of its members reporting a fall in prices locally than an increase.

It said enquiries from new buyers had fallen for the tenth month in a row.

Rics blamed the downward trend on a combination of factors, such as higher interest rates and lenders tightening their lending criteria.

"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.

"The combination of rising interest rates, the introduction of home information packs (Hips) and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers," he added.

Most commentators now agree that the property market is now responding to the five rate rises imposed by the Bank of England since the summer of 2006.

This week the Council of Mortgage lenders (CML) said that the burden of repaying the interest on mortgages was at its worst in 16 years for first-time-buyers, and at its worst in 15 years for people moving house.

It predicted the situation would get worse in the coming months.

"As lenders move to price for the risk they are taking on, mortgages are set to become more expensive for customers who have poorer credit histories," said the CML's director general Michael Coogan.

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People here have predicted many "turning points" in the UK housing market before. I heard this article on BBC Breakfast news this morning and something makes me feel that this really is a big turning point. To hear that house prices are falling, said by a newsreader on BBC1 at breakfast time must finally start to effect the thinking of the sheeple.

All we need now is Haliwide to report house price falls (although I`m sure they continue to somehow keep prices rising*).

* Seasonally/ VI adjusted figures).

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Dermott and Kate are having to read this out from the Breakfast sofa.

Homes Live, which reviews the papers in its 2nd piece every morning ~10:00 -> 10:15 should make for interesting viewing, as they struggle to push the tired "property as investment line".

Nice to see that Declan Curry won a Financial Journalism Award which he was showing off this a.m. ... but he managed to avoid talking about this story. :blink:

Meanwhile the Beeb has picked up on the collapse in volumes as their bull spin. They are explaining this as a lack of "forced sales, something that has been responsible for falling prices in the past."

Doh! Crash called off again then, according to the beeb. :blink: ( :lol: )

Edited by Sledgehead

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Dermott and Kate are having to read this out from the Breakfast sofa.

Homes Live, which reviews th epapers in its 2nd piece every morning ~10:00 -> 10:15 should make for interesting viewing, as they struggle to push the tired "property as investment line".

Nice to see that Declan Curry won a Financial Journalism Award which he was showing off this a.m. ... but he managed to avoid talking about this story. :blink:

did my ears deceive me, or was the second headline in on 8am BBC NEWS (yes, BBC NEWS) 'House prices fall for the second month in a row' ??!!

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Yes it's all good news but then they go on to say that the number of properties being put on the market has declined and apparantly goes to prove that few people are being forced to sell like last time so in effect they are telling the sheeple that all will be fine.

what a load of crap !

if as they say property has only just turned then why would we exspect to see so many people being forced to sell so soon.

Did any of you see the advert in one of the estate agents window where it looked like a ex council semi with a price of 725k and ten years ago i bet it would have come in at a mere 75k.

Our time has arrived but it's always best to cook dinner before you eat it.

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"A major correction in the market seems unlikely while

economic growth is above trend and employment conditions remain buoyant"

RICS spokesman Jeremy Leaf

... the beeb are also running a story on "Momiji gari". For those of you unfamiliar with the term, it refers to the time of year when Japanese traditionally go out into the parks and country to view the colours of Autumn, specifically the time when leaves turn red. Presumably with embarassment.

Edited by Sledgehead

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Yes it's all good news but then they go on to say that the number of properties being put on the market has declined and apparantly goes to prove that few people are being forced to sell like last time so in effect they are telling the sheeple that all will be fine.

Gosh really? Didn't they watch their own Panorama...

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Meanwhile the Beeb has picked up on the collapse in volumes as their bull spin. They are explaining this as a lack of "forced sales, something that has been responsible for falling prices in the past."

So - they are explaining drying up of supply as a reason for falling prices?

Isn't their usual line the exact opposite?

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did my ears deceive me, or was the second headline in on 8am BBC NEWS (yes, BBC NEWS) 'House prices fall for the second month in a row' ??!!

No they didnt this was exactly how it was told on Radio 4 news at 8am

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Hello verybody, I have been follwing this site for the lat 3 years on a daily basis and have fiannlly decided to register myself :rolleyes:

I thionk we are fiannly at a stage where sentiment has turned now.. i have had to put up for 4 years of bulls in the office telling me to buy as house prices only go up.. but now its time for me to put them straight.. :lol::lol:

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Hello verybody, I have been follwing this site for the lat 3 years on a daily basis and have fiannlly decided to register myself :rolleyes:

I thionk we are fiannly at a stage where sentiment has turned now.. i have had to put up for 4 years of bulls in the office telling me to buy as house prices only go up.. but now its time for me to put them straight.. :lol::lol:

Oh welcome Brother EastMidlandBear.

The Guardian's running with the ball now... http://money.guardian.co.uk/houseprices/st...2188331,00.html

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So - they are explaining drying up of supply as a reason for falling prices?

Isn't their usual line the exact opposite?

No, that is not what they said, or me for that matter. I did put a comma in there, but yes, it still remained ambiguous, granted.

But honestly, you could have read between the lines. It's not as if I txted it or wrote it in leet, which is not at all uncommon on fora nowadays.

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Yes it's all good news but then they go on to say that the number of properties being put on the market has declined and apparantly goes to prove that few people are being forced to sell like last time so in effect they are telling the sheeple that all will be fine.

It says nothing about houses sitting around and not selling, mind.

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