Monday, May 15, 2006

Asking Prices rise again...according to Rightmove!

TimesOnline: Mini-boom sees house prices surge

According to rightmove asking prices for properties rose 2% over the last month. Rightmove stated that the figures "exceeded all expectations" Is this the start of a new boom or speculative sellers "chancing their luck". Will this add weight to next months MPC meeting and force a pre-emptive rate rise.

Posted by denzil @ 09:32 AM (618 views)
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8 Comments

1. Bfskinner said...

this is a bit dubious journalism "Mini-boom sees house prices surge" is not exactly borne out by the info in the story. What this story says is that according to Rightmove (who set or at least advise asking price) asking prices have actually increased by 2%. Therefore Rightmove are reporting that they have increased their own prices, and the Times are simply reporting that Rightmove are rporting this. Jez! what a polava!

Of couse, in spite of all that, the key words in the article is "ASKING PRICES" not SOLD FOR prices. It is somewhat interesting that newpapers dont point this out. Not do they point out the huge descrepancies in the house price reports. 7 or 8 surveys showing growth from under 1% to 8%, with the London market reportes ranging from 0.5% growth to ovwer 5% drop. You would think that such variability in reports would suggest something really fishy was afoot. Perhaps asking that the financial journos grow some balls and tackle the bigger picture is just to much.

However, one benefit of the Righmove report is that it might finally prompt the MPC to raise the base rate, heres hoping

BFS

Monday, May 15, 2006 10:51AM Report Comment
 

2. Inbreda said...

"According to Rightmove..."

Say no more.

Monday, May 15, 2006 11:24AM Report Comment
 

3. talking rot said...

I do not buy the argue that house prices MUST be high due to insufficient land or buildings. If this is the case, please could some one tell me why house prices in Japan have been falling? Japan has a population of approx. 80 millions and is highly mountainous so there is less space to build then in UK.

House prices are high because there are the economic conditions and owner-occupiers' sentiment to make them high. RightMove add to the latter. A better piece of journalism would have included some down-side risks.

Thing is though, economic conditions remain benign and while that is a fact, there will be no House Price Crash.

Monday, May 15, 2006 01:19PM Report Comment
 

4. Inbreda said...

Has this excess demand and lack of supply all come about in the last 4 years? I didn't realise that all of a sudden thousands of people were sleeping under railway arches waiting for someone to build a house so they could spend their half-million savings on it.

Insufficient buildings implies more people than property. In actual fact it probably means more thick BTLers than property.

That kind of demand can disappear in an instant.

Monday, May 15, 2006 02:05PM Report Comment
 

5. uncle chris said...

Speaking of BTL's, I overheard a lady in a local estate agents over the weekend complaining that her TWO flats had been empty for 3 months and asking what kind of price she could expect if she sold (didn't hear the price mind). It's amazing what you can overhear in EAs.

Monday, May 15, 2006 05:50PM Report Comment
 

6. Ohyesitwill said...

How many mini-booms is that now?

Monday, May 15, 2006 07:15PM Report Comment
 

7. Coops said...

I agree, one of the main causes of insufficient supply is the increase in BTL investors. It seems amazing that given the problems that high house prices are causing, that the givernment appears to be doing nothing to stop this. BTL investors do very little to add value or provide employment in comparison with other industries. Two steps the government could take are to tax BTL investors more heavily, to discourage the trend, and build more houses to increase supply in order to provide people with an altrernative to being forced to line the pockets of the BTL investors.

Monday, May 15, 2006 08:12PM Report Comment
 

8. talking rot said...

uncle chris

Normally I am skeptical about this whole House Price Crash thing as there has not been a sign of it yet - merely possible economic risks on the horizon that may (or may not) occur.

Your post could be the first and I'll drink to that.

The thing that worries me most, though, is ... how often do you hang-around EAs?

Monday, May 15, 2006 08:29PM Report Comment
 

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