Monday, April 16, 2007

Rightmove show stunning price rises over past month

House prices up £8,000, (3.6%) in March - Rightmove

Britain's housing market continues to defy gravity, with Rightmove reporting that house prices in the past month (March) have shown their biggest increase for five years.... Miles Shipside, commercial director of Rightmove: "Sellers' asking prices provide one of the earliest indicators of which way the market is headed, and while a boost is to be expected around Easter, £8,000 in a month is the largest amount we have ever recorded. Every region saw large increases, with the minimum jump being £3,000."

Posted by converted lurker @ 12:42 AM (553 views)
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17 thoughts on “Rightmove show stunning price rises over past month

  • Exactly what I have seen here, prices soaring above previous ceiling prices BUT, as yet, they are not selling.

    EA’s and sellers trying to get as much £ as they can before the crash!

    Or this could just be wishful thinking on my part?

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  • Phoneymcringring says:

    Does anyone know of anyone who earnt £8k last month?

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  • Thats funny, something isn’t adding up here. I know of dozens of 2 and 3 bedroom homes being slashed in value, one in particular went from £169k down to £149k and still remains unlooked at. As I kept tabs on the auction sale, the owner now is being forced to cut his losses. The local estate agents are rife with price reductions on even the low end of the market.

    I simply do not believe this hype…. only a mug would.

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  • Suspect calculations with averages probably distoted by Mayfair properties. Houses near me (southeast) are on the market with ASKING PRICES about 2-4% higher than SELLING PRICES 2 years ago. In other words below inflation price increases. They still go relatively quickly but stratospheric price rises now seem to be a thing of the past.

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  • tyrellcorporation says:

    Friends of mine have just put their terraced house up for sale in Camberwell for £650k. Two years ago it was valued at £450k!

    WHY WORK?!?

    This is a nice house in an area with routine shootings, muggings and drug crime! I’m at a loss for words really.

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  • Remember – Rightmove looks at asking prices, not sale prices. If there is a slight tendency for more expensive houses to be offered for sale, or a little over optimism on the part of vendors then their index takes a leap.

    But if prices ARE taking off, then that can only hasten the inevitable..

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  • I found the best way to understand the REAL price trends is using websites linked to land registry. The following has very decent search engine, you can use postcodes, of fragments of the address and can narrow your search using the map feature (quite handy)

    http://www.houseprices.co.uk/

    You can track subsequent sales of the same property in areas you know (e.g. safe areas, with good transportation links, or good schools) or you can track comparable properties (eg flats in the same block or terraced houses on the same street).

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  • Midland Red says:

    There’s been no spring bounce round here (Worcestershire) yet. I haven’t noticed more than a couple of houses out of hundreds for sale go under offer. The market seems to have ground to a halt.

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  • converted lurker says:

    The only comfort to be drawn from this latest set of figures could be the possibility that plenty of folk are attempting to ‘top out’ of their expensive properties at the peak of the market, trouser their profits and bunker down. If so this could distort the figures. However, sentiment will have been very high on the morning commute for joe public.

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  • george monsoon says:

    We seem to have two problems here.. what the general public believe and what the financiers know.

    The public will buy the hype and keep pushing up prices.
    The BoE don’t believe anything other than their handicap on the green, so hey ho! no interest rises to curb the madness.. and thus we head for the cliff at full speed like Thelma and Louise…

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  • These price rises are real! Last week a flat in my block (SE London) sold for £250,000.

    This time last year, according to the landregistry almost identical flat where selling for £177,000

    Thats a staggering £73,000 rise. I was talking to an estate agent and he told me that he now see’s numerous enquiries on 1 bed flats with an upper limit of £250,000, so in his opinion there is still scope for price rise on one beds up to that level.

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  • 3.6% in one month, eh? If that translated to average SELLING prices across the country (dubious), that would be a 43% increase over 12 months! Desperate mortgage companies are having to offer 6 (or more) times mortgages to even attract new business now, and there is a mathematical limit to how much more you can lend someone (relative to their earnings) before their take-home pay won’t even cover the monthly mortgage repayments (let alone anything else). In short, you don’t need a maths degree to know those sorts of increases are unsustainable, even if they were a true reflection of sales prices (I hope they are – jumps like this just bring the crunch nearer).

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  • Dugmug is right. On a 6x mortgage, the slightest change in interest rates will be damaging.

    To seem like a balanced buy, I will point out that Russia is approx 60 times larger than the UK but has only 2.5x the UK population. Canada is more than 50 times bigger than the UK and has 1/2 the UK population. However, Japan, roughly the size of the UK has twice our population but still suffered one of the biggest crashes in history.

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  • Following the same logic, if I ask my boss for a 100% wage increase today, I’ll get it and be worth that much tomorrow.

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  • With the factory gate price data coming in higher than expected today, there will be a lot of raised eyebrows if the BOE does not hike rates next month – indeed there’s quite a good argument for a half percent rise – although I doubt they will

    That might dampen the enthusiasm a little..!

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