Thursday, September 14, 2006
And still they rise…..
House prices soaring
Houses prices rose at their fastest pace in more than two years in August with a hike in interest rates failing to deter buyers, a survey has shown. The Royal Institute of Chartered Surveyors (RICS) said 35% more of its members reported a price rise rather than a fall during the month - up from 30% in July.
Posted by little professor @ 09:42 AM (615 views)
6 thoughts on “And still they rise…..”
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Ontheotherhand says:
Is this just smoke and mirrors with percentages? When they say 35% more reported a rise presumably that mean for every 135 who say prices rose, 100 reported a fall. In other words 57% of RICS members reported a rise and 43% reported a fall. That’s not nearly such a good headline though.
Magnifico says:
Inflation up, consumer spending still above affordability and a fighting fit housing market…
Who will now be able to oppose an Interest Rates hike next month? Is half of a percent such a preposterous figure?
You can’t nurse a bubble, it’s a questios of osmosis a bubble exist only when the air pressure inside it is the same as the atmospheric pressure. Any little variation will produce not a gentle collapse, but a pop.
talking rot says:
rich
Thank you for your comment on “MoneyWeek: Why one more itnerest rate may not be enough.” I am not disputing the validity of the article. My concern [and frustration] stems from seeing a large number of articles within many quality publications which have predicted a House Price Crash on the basis of risks. Risks are things which MAY or MAY NOT happen. As a result many quality publications like MoneyWeek and The Economist, have rightly pointed out economic risks that MAY cause a House Price Crash.
The thing is, there is no sign of a House Price Crash in their area where I rent (Hampshire) or the area where I am looking to buy in a few years (North Yorkshire). Quality publications have made predictions on the basis of things [risks] occurring when there is no certainty that they will occur. As a result these predictions have not come true. We can only debate the likelihood of these risks occurring and what the outcome on House Prices MIGHT be.
I recall some learned economist stating “When the facts change, I’ll change my mind” or something similar. It is a fact that there is no House Price Crash today. There are economic risks which MAY or MAY NOT cause one tomorrow. When the risks cease being a possible future event and become an actual current event, then the facts will have changed.
… And I’ll be able to afford that matchbox under the embankment I’ve always dreamed of!
the bald man says:
Talking Rot: I believe that historically all markets that dramatically rise above a historic trend against underlying fundamentals all fall back to trend. It is just picking the right time when this will happen. Just look at the dot com boom.
Also look at what happened to real estate in Japan and what is happening in the US.
There is no reason why houses have risen to this level other than the availability of easy credit. This can not last for ever (IMHO). There are already signs of the cracks in the UK economy that Gordan can no longer plaster over (debt mountains, excess government spend).
autopilotengage says:
Had to share this guys, came through my (rented) door yesterday. It’s a leaflet dropped by Bryant Homes for their new development “daisy nook gardens” a few miles away from where i live. The incentives they are offering to shift their new homes at inflated prices are bordering on the farcical; i don’t know how they are allowed to get away with it and still claim that their houses are selling for asking price. This is pretty close to the “free swimming pools” being offered in the states!!
This following text is lifted directly:
Reserve one of our homes now, legally complete by the 15th December 2006 and we’ll include:
5% deposit paid
fitted carpets
stamp duty paid
£500 towards you legal fees
markd says:
Interesting Auto…so on the, I assume, fairly safe assumption that some of these properties would be around the £249,950 mark that totals approx £16,500 off the asking price, allowing say £1,000 for carpets (because they are bound to be cheap rubbish), £12,500 “deposit”, £2,500 almost for SD and the legal costs as stated.