Thursday, Dec 14, 2006

NAEA: Asking prices fall nearly 7% in Oct

The National Association of Estate Agents: SEASONAL PRE CHRISTMAS SLOWDOWN IN HOUSING MARKET

AVERAGE ASKING PRICE NOVEMBER 2006 211,401
AVERAGE ASKING PRICE OCTOBER 2006 226,768

Members of the National Association of Estate Agents (NAEA) noted a seasonal downturn in activity in the property market during November, as buyers and sellers concentrate on the festive period, rather than home moves. The number of buyers on estate agents books decreased, as did the number of properties available for sale.

Posted by jason @ 07:55 AM (555 views)
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16 Comments

1. jason said...

Opps, this is for Novemeber not October.

Thursday, December 14, 2006 07:56AM Report Comment
 

2. Forever Blowing Bubbles said...

funny how estate agents always talk up prices. Alot of sources give average house price around 180k and hear estate agents are saying average prices of 211k hmmmmmmm.

Be it 180 or 211 it is all over priced

Thursday, December 14, 2006 08:43AM Report Comment
 

3. paul said...

It doesn't seem especially relevant (just in my opinion).

What's far more interesting is the retail figures for the Xmas season, which will say far more about the state of the housing-dependent economy than this temporary lull in EA activity.

Thursday, December 14, 2006 09:46AM Report Comment
 

4. Surfgatinho said...

Numbers of properties decreased - Asking prices decreased. Bang goes the supply and demand theory then!!

Thursday, December 14, 2006 10:19AM Report Comment
 

5. cyril said...

and inflation (both RPI and CPI) which have gone up again.

Thursday, December 14, 2006 11:12AM Report Comment
 

6. Cstanhope707 said...

Paul

Excellent point and if the retail figures are good you bet the BEEB, DE and other VI spin will start, but all this would mean is that people have not maxed out their credit cards yet.

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

7. bidin'matime said...

"The average number of times a house was viewed before it was sold fell from 11 in October to 10 in November. This is to be expected, as a depleted housing stock offers buyers less choice and less properties to view. "

So if there were more people viewing houses, would they call that a bad sign?? Might it be that it in fact ties in with the fall in asking prices, ie people discounting for an early sale?

Funny how in a bubble, all news is good news.

Thursday, December 14, 2006 01:31PM Report Comment
 

8. paul said...

Indeed bidin'.

Christmas - a good time to bury bad news perhaps ... ?

Thursday, December 14, 2006 05:07PM Report Comment
 

9. p. o. o. r said...

I had an estate agent phone me this afternoon, as I had shown interest earlier this year about buying - I was told the market is very quiet at the moment, with few sellers and even less buyers meaning those wanting to sell will consider offers. It will be interesting to see if things pick up in the New Year - I have a feeling not. The shops in my town are also very quiet, with many of them discounting heavily, and my local pub says it is the worst December he can remember. If interest rates go up in Jan / Feb then that will put further pressure on the market, and reduce spending even further. Maybe though i am just wishful thinking in hoping that house prices will become affordable again... :-)

Thursday, December 14, 2006 05:27PM Report Comment
 

10. inflation is eating my savings said...

I have a feeling this is just the normal seasonal effect. However, in our area, the end of year supply seems to be much higher than last year, where there was nothing at all available.
This hopefully will inhibit the usual spring bounce (which was very big last year). Chinese whispers from certain agents here suggests the market has been overpriced and has come down slightly- sellers are telling you what they want rather than being smug and silent and waiting for a bidding war (I'm in Scotland). As expected, they are always being very greedy. What is perhaps more frightening is that if you approach a solicitor wishing to put a low offer in (to establish a opening bargaining position) they more often than not refuse, or charge you. With this sort of racket in Scotland, there will not be a crash, but a slow slide.

Actually, we put an lower offer in for a place a few weeks ago. The deal fell through after the price was accepted because the place was falling apart, charming though it was. The only reason I could get a low offer (10% under the fixed price) put in in the first place was because my boss is on the same rotary club as the solicitor. This unfortunately is how the world works. I feel we should be using this forum more for exhanging ideas about how to pull a price down on a particular property. This is how reality will begin. The surveyors/solicitors/agents are not going to bring reality for us. Neither can we rely on the mass media to accurately portray any strong negative sentiment.

Has anyone though about wearing out estate agents in your local area by putting in stupidly low offers on every property available? I've thought about mass leaflet campaigns in the area you want to live in to frighten people into selling, thus flooding the market. Distinctly unethical- but is it any more unethical that the pretending that prices never fall?

Thursday, December 14, 2006 05:47PM Report Comment
 

11. paul said...

After rejectding a local foxtons appointment to see a one bedroom flat, he said he has over 20 people interested in this new instruction 260K one bedroom property. I replied telling him "well that's great in the current climate, but no thanks". I emailed a link from another EA website showing the comparison for a two bedroom property for 230K.

"Do appreciate what you are saying though", he added.

Use the Internet, luke.

Thursday, December 14, 2006 06:04PM Report Comment
 

12. p. o. o. r said...

I should have said in my earlier posting that I live in the home counties. I sold in December last year, with it taking only days to be offered full asking price - looking at the property I sold one year ago I would be very surprised if it went for more today as similar properties are still on the market for about the same price. Even one property still on the market which was put up for sale about 18 months ago. I will talk with the estate agents in the new year, and see if things start to move again. This afternoon I looked in several estate agent windows, and there is most definately very little on the market.

Thursday, December 14, 2006 07:03PM Report Comment
 

13. Nohpc said...

Paul please give exact details on the 230 and 260 properties you are comparing. Foxton's often overprice things. Howerver, in saying that when it came to renting my flat I had 3 agents come and look at it. The first two said I could get 280 maybe 290 at a push a week. I told them Foxton's were coming too and they both said Foxton's will say 325 pounds a week. When foxton's came they did indeed say 325 a week and I smirked and said fine you can put it on at that and a couple of weeks later after 3 viewings I got offered that price!

Thursday, December 14, 2006 10:19PM Report Comment
 

14. monty said...

Don't get too excited. If you have a look at any seasonally UNadjusted figures you'll see declines in both volume and price over this period. That's why they are adjusted in the first place.

Thursday, December 14, 2006 10:26PM Report Comment
 

15. C'mon Correction said...

I'm seeing the same pattern as other posters, here in South Wales. There are a lot of new builds available because of the huge development work going on here at the moment, but very few nice 'non-box style' houses. However there must be even fewer buyers because a lot of houses are still on the market after 6 months or more. They are simply too expensive for the wages here - period.

However asking prices have fallen approx 5-8% in the last few weeks - it will be interesting if rates go up again in Feb as we get to the tipping point of 5.5% (in my opinion - relating to North, Midlands and south west of england, Wales, parts of Scotland and parts of Northern Ireland).

I do think the public looks at the nationial massaged price inflation figures published by Nationwide and Halifax (which have been skewed by London recently) and apply it to all areas. This will still have a boosting factor to sentiment over the next year and maybe up to the Olympics?

Friday, December 15, 2006 09:08AM Report Comment
 

16. Dohousescrashinthewoods said...

How des it compare to previous years at this time? Proportionally bigger/smaller/about the same?

Friday, December 15, 2006 12:53PM Report Comment
 

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