Monday, Jul 17, 2006

Asking prices defy concerns of sustainability

TimesOnline: South East leads property price rises

According to Rightmove asking prices in England and Wales jumped by 6137 in the month to the first week of July.
The largest rise was in the South East where prices rose by more than 12000 during the month. Asking prices in two of the ten regions fell.

Posted by denzil @ 09:24 AM (568 views)
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3 Comments

1. inbreda said...

Apart from the fact that asking prices are not necessarily anything like selling prices, there is this comment from an expert:

"The report said that such strong increases were unusual for this time of year. However, it pointed to increasing numbers of buyers and a shortage of good housing stock as the main factors in driving up asking prices. "

Personally I suspect that the asking price increases are caused by lots of amateur property developers who bought 6 months / a year ago, and think they can sell a property for what they paid for it + what they spent on it + 150,000 for all the hard work they've done in the last 9 weeks.

There could also be a lot of BTLers who have decided to sell once they have realised that they are subsidising their tenants, who have had their property for a year or so and beleive it to be worth twice what they paid.

Nobody is reporting on any change in the disparity between asking and selling price. I seem to remember some time ago that it had grown by a very large amount.

Monday, July 17, 2006 12:13PM Report Comment
 

2. kpjcomp said...

Well from were we live (North-East), I'm not sure were rightmove is getting its data. We've been searching for a property for the past 4 month, using rightmove. And houses that were showing 250K area, now appear at the 235K area.

Monday, July 17, 2006 01:45PM Report Comment
 

3. Sloth said...

inbreda,

I believe my landlord is selling for exactly that reason.

Monday, July 17, 2006 02:26PM Report Comment
 

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