Monday, February 26, 2007

Hometrack survey shows prices up 0.7% in Feb

Supply shortages push house price growth to three-year high

The lack of supply compared to continuing high demand for property stock, particularly in the south, is the main factor keeping the property market strong. This is despite the MPC's IR rate rises at the end of 2006 and January 2007.

Posted by jellycaster @ 09:02 AM (487 views)
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12 thoughts on “Hometrack survey shows prices up 0.7% in Feb

  • March rate rise here we come!

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  • It’s amazing how much milage they can get out of one months figures. Am I the only one to think that 0.7% on the month isn’t all that exciting?

    Funny, 12 months ago it was low interest rates that were driving the market supposedly, now they’re irrelevant.

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  • But I’m told that there isn’t a supply issue and that there are simply hundreds of thousands of houses lying empty across the land, just waiting for their prince (or princess) to come knocking and snap them up at bargain basement prices because all the silly people that bought them last year are now overstretched thanks to suprise 0.25% January rate rise. Am I wrong or was this just someone else’s wishful thinking?

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  • I think the article is talking about prices in central london rising. Eveywhere else they’re stagnant or falling.

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  • there are an estimated 335,000 empty properties in the uk……………moron buy-to-let people also own 3,4,5,10 properties which they will dump when prices start to fall.

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  • monty,

    Wishful thinking – Many areas are still rising – not just central London
    0.25% rate rise in January will affect very few people by itself

    There may be an oversupply of small flats in specific towns but still a shortage of houses that people really want to live in.

    HPC’s don’t happen that fast. The market runs on for much longer than most people expect.

    Interest rates are still much to low.
    Unemployment is still low.
    The economy is doing well
    Money is still flooding in from Asia/Middle East/Russia/Japan

    Think of it as an oil tanker in reverse thrust.
    It can take many miles before the tanker starts moving backwards

    Q4 07 / Q1 08 should see a change in economic conditions

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  • Really, how much of this is down to supply? We’ve had a trebling of house prices in 10 years, are we to believe that there are 3 times as many people or a third the number of properties?

    Isn’t this just a case of attempting to justify a phenomenon which has been less and less driven by economics and more driven by speculation and human nature over recent years?

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  • >Hometrack said that while the number of properties registered with agents grew 14%, the number of buyers rose 23%.< I don't buy that as an argument for a strong market - sellers generally register with one agent, whilst buyers register with lots. Okay, so we are talking percentage increase, but if there are no sensibly priced properties around, you have to look further afield and register with more agents, do you not? Like an oil tanker that runs out of water before it stops moving forwards (and hence crashes into the rocks), my guess is that the property market is going to run out of money before the forces of supply and demand put the brakes on. Whether by lenders tightening their criteria or simply people exhausting their borrowing power (stuck in that FTB flat until they are 40..), the money will run out. Then buyers will lose interest as they see prices level off, then prices will start to fall, then ‘investors’ will start to see - but by then it will be too late to signal the bridge to apply reverse thrust – everything will come to a juddering halt as the market hits the rocks...

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  • As London leads the housing boom can anyone tell me what the percentage rise in earnings is for this area? I assume the MPC can really only take into consideration the average earnings across the country. I suspect more disparity to come

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  • Again, sorry to sound like a stuck record but these figures bear no relation to the area I fequent. To illustrate, a house I have been monitoring sold recently at less than it sold for in April 2005 (£265,000 down from £276,000) – see official figures at

    http://www.houseprices.co.uk/e.php?q=Honeysuckle+Cottage%2C+SY10+7DR&n=10

    However, the NATIOWIDE HPI Calculator tells me that prices in Wales should have risen 8% over that period. So if the figures are to be believed the house should have sold easily at £298,000. Before anyone asks, I know the bloke in question and the house was not sold to family/friends or remortgaged. It was on the market for around 14 months before selling. I accept London is a different kettle of fish, but general HPI in the rest of the country – I just don’t see it.

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  • Again, sorry to sound like a stuck record but these figures bear no relation to the area I fequent. To illustrate, a house I have been monitoring sold recently at less than it sold for in April 2005 (£265,000 down from £276,000) – see official figures at

    http://www.houseprices.co.uk/e.php?q=Honeysuckle+Cottage%2C+SY10+7DR&n=10

    However, the NATIOWIDE HPI Calculator tells me that prices in Wales should have risen 8% over that period. So if the figures are to be believed the house should have sold easily at £298,000. Before anyone asks, I know the bloke in question and the house was not sold to family/friends or remortgaged. It was on the market for around 14 months before selling. I accept London is a different kettle of fish, but general HPI in the rest of the country – I just don’t see it.

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  • Agreed Uncle, I am in the NE where prices have supposedly increased in line with every where else and I have been watching the property market like a hawk for a couple of years in this area now. Prices are absolutely stagnant, as I have always said, nice homes are moving quickly at market value, the dross is sitting on the market permanantly and to be honest I don’t think it matters how much you reduce prices on some of the rubbish on the market, no one with half a brain is going to buy them because they are not so much homes but slums…

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