Thursday, Sep 14, 2006

And still they rise.....

The Guardian: 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 (554 views)
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6 Comments

1. Ontheotherhand said...

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.

Thursday, September 14, 2006 09:54AM Report Comment
 

2. Magnifico said...

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.

Thursday, September 14, 2006 10:16AM Report Comment
 

3. talking rot said...

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 Ill be able to afford that matchbox under the embankment Ive always dreamed of!

Thursday, September 14, 2006 10:30AM Report Comment
 

4. the bald man said...

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).

Thursday, September 14, 2006 12:49PM Report Comment
 

5. autopilotengage said...

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

Thursday, September 14, 2006 12:56PM Report Comment
 

6. markd said...

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.

Thursday, September 14, 2006 01:20PM Report Comment
 

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