Friday, Aug 11, 2006

House Prices feeling the Heat House Prices Feel The Heat

After three consecutive months of minor rises, asking prices in England and Wales were knocked back by 0.6%, according to the latest Asking Price Index report from Such price cutting behaviour underlines the highly price sensitive nature of the current housing market. Buyer affordability constraints are again creating sufficient downward pressure on prices to force sellers to discount their asking prices.

Posted by tinecu @ 01:50 PM (557 views)
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1. markd said...

"Bad news for sellers perhaps, but the changing nature of the market offers a glimmer of hope to aspirant first time buyers."

Well certainly a glimmer but it will need a major fall for prices to acheive a realistic level for FTBs. Overall a very encouraging article-at odds seemingly with others posted recently, but the Land Registry figures discussed below represent actual sales.i.e transactions finalised many weeks or months before the sale takes place, whereas Home are looking at recent asking prices so hopefully this does present us with an accurate picture of what is happening now.

Friday, August 11, 2006 02:18PM Report Comment

2. sirgoogle said...

Interesting how different this is to other indexes

This is most probably beacuse the index excludes properties above 1m and below 20k. This means that the effect of the boom in expensive larger property in London has been removed.

Give that the sample size is around 500,000 properties - I will start to pay more attention to this index.

Friday, August 11, 2006 02:30PM Report Comment

3. uncle chris said...

Hold onto your hats, it's going to be a bumpy ride :-)

Friday, August 11, 2006 02:53PM Report Comment

4. talking rot said...

I like to think a degree of sense is returning to the UK economy and the UK housing market. However, I have watched many leanred people on this site posting to say 2005 would be an interest year - and it wasn't. I hope 2006 is interesting - the start of 30% over 3 years interesting.

Friday, August 11, 2006 04:01PM Report Comment

5. Rosy said...

As far as I can remember, the Home index includes all asking prices no matter when the property was first listed (apart from those in the top and bottom price brackets). The other indices use recent data only. For instance, Rightmove only uses data from new listings that month, so doesn't record any declines in asking prices that might happen when a property doesn't sell. Obviously at the moment, the longer properties are on the market the more likely the seller is to reduce the asking price. The Home index probably gives a better picture of asking prices across the board whereas Rightmove gives a picture of the early-days optimism of sellers dipping their toes in the water for the first time.

Friday, August 11, 2006 04:16PM Report Comment

6. inbreda said...

Exactly rosy - the rightmove index is not measuring house prices, it is merely measuring the unrealistic expectations of BTL property developer morons, which as we all now is on a planet far far away.

Saturday, August 12, 2006 12:20PM Report Comment

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