Saturday, March 17, 2007

What happens when the tide goes out?

House prices fall by over £4,500 in February - NAEA

The National Association of Estate Agents (NAEA) has released figures from its latest housing market survey, revealing that the residential housing market has begun to feel the full effects of the interest rate rises seen in the past few months. AVERAGE ASKING PRICE FEBRUARY 2007 £213,259 AVERAGE ASKING PRICE JANUARY 2007 £217,955

Posted by converted lurker @ 01:54 PM (567 views)
Please complete the required fields.



14 thoughts on “What happens when the tide goes out?

  • Given that there is such a supposed short supply of properties in certain parts of the country (e.g. the southeast) this is really quite significant. Basically something very nasty is heading in our direction.

    Reply
    Please complete the required fields.



  • This is not really new news as many properties are already changing hands at up to 20% less than the estate agents inflated board prices in many areas outside London. Add in the fact that a lot of retailers are starting to publicly struggle with private equity victims Debenhams heading the list with their February figures recently released and I would imagine that job losses in the retail sector may start to appear.

    Hold on tight the ride appears to have started!

    Reply
    Please complete the required fields.



  • Yes glad you mentioned private equity. Debenhams will stuggle, its PE days have left it layered with
    debt, (the PE owners put £600m into the deal and took out £1.3bn in dividents).
    I doubt it even owns its stores anymore. Boots will probably will go the same way.

    While the Tories are welcoming Private Equity (George Osbornes team is staffed with KPMG who know a thing or too about tax evasion) Germany has more sense and is clamping down by changing the tax treatment on interest payment. If this effects the PE sector “so be it” said the German Finance Minister!

    Reply
    Please complete the required fields.



  • David20040_0 says:

    Watch the Bank of England panic and slash interest rates.

    Reply
    Please complete the required fields.



  • dohousescrashinthewoods says:

    Well, many of us have been tentatively calling it, but this is something very real.
    It may only be the asking prices, other indicators may still be holding steady and the truth may already be different but..
    It does feel like the first official step.
    Crikey.

    Reply
    Please complete the required fields.



  • Well it had to happen at some point. Hopefully the other surveys will back this one up. If nothing else, it proves the mood is changing.

    Reply
    Please complete the required fields.



  • I read in the papers today however that we need to build 220k houses a year for the next decade, surely even if prices do drop now then they will surely just pick up again.

    Reply
    Please complete the required fields.



  • And GBP is steadily falling in value so the BofE will have to raise rates to protect the pound …

    Where are you glorious sunshine??

    Reply
    Please complete the required fields.



  • David20040_0 says:

    I have seen the £GBP steadily losing its value over the past few days. It was 1.96$ at XMAS, it is 1.86$ now.

    Reply
    Please complete the required fields.



  • Let us hope that Crash Gordon doesnot listen to the quote …. “and would like to take this opportunity to encourage the Chancellor to address the issue of stamp duty thresholds in his imminent budget announcement”…..

    This would simply heat up the market again and postpone the HPC for another 6 months

    Reply
    Please complete the required fields.



  • little professor says:

    can you do fancy html in these comments paul?

    Reply
    Please complete the required fields.



  • little professor says:

    Oh, I didn’t realise you could.

    cool

    Reply
    Please complete the required fields.



  • Sorry to have to correct “David 20040_0”, who mentioned in his comments that the GBP – USD exchange rate has fallen from $1.96 to $1.86 since Xmas…it actually hasn’t fluctuated much since then and is currently at $1.94. check out the following BBC link to get the latest USD exchange rate:

    http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/currency/11/12/default.stm

    Reply
    Please complete the required fields.



  • Sorry, I meant the tourist exchange rate.

    At my local American Express Currency centre they display the currency values on a big sign on my way to work.

    Beofre Xmas you could pick up $1.96 for £1, now it is $1.84.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>