Friday, September 14, 2007

Now then, back on the subject of house prices

House prices drop by over £6,000 as sellers hold fire - Rightmove

Miles Shipside, Commercial Director of Rightmove comments: "Whilst there was a surge of '4 bedders' coming onto the market for just one week at the end of July, there has been a much greater dearth of them in the four weeks since. If this happens with the remainder of the phased introduction of HIPs, the concern will be that impulse sellers are being put off by the additional costs and hassle of a pack. Whilst it should all settle down with time, it will take longer as sellers are now facing the challenges of a cooling market and the highest interest rates for 6 years".

Posted by converted lurker @ 02:26 PM (1435 views)
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16 thoughts on “Now then, back on the subject of house prices

  • Oh yes of course it’s the fault of hips!

    What utter rubbish. My dad is thinking of selling (a very big 4 bed) and the estate agent has told them it will cost £200 and can be done in a couple of days.

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  • “The lower number of 4+ bedroom properties coming onto the market has also depressed average national asking prices by 2.6% (£6,298). ”

    Uh – Less supply – higher prices right – that’s what we’re always being told. Could it be that there is no relationship after all.

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  • Asda offer estate agents services they are pretty cheap…

    Usual rubbish from someone with an interest in high prices… the housing market is going down…

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  • “The lower number of 4+ bedroom properties coming onto the market has also depressed average national asking prices by 2.6% (£6,298). ”

    Uh – Less supply – higher prices right – that’s what we’re always being told. Could it be that there is no relationship after all.

    No, fewer big houses means the average house price will go down, as the article says this is a “largely a statistical anomaly” and not a real drop in prices.

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  • captain sensible says:

    I’m sure if I look hard enough I can find some anomolous statistical explanation for the 20% fall in the US. Quite a dilema for the property investor with properties currently worth, say, a million or so. In simple terms, every 1% drop is a loss of 10k. S/he could wait to see if this is really just an anomoly, but if it proves not to be then waiting could easily cost 100k or more.

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  • Would Mr Shipside care to explain why HIPs has depressed asking prices?

    One might have expected a little surge of instructions to beat the deadline, followed by a lack of them immediately after – but the ripple would very soon smooth out.

    The notion that sellers would slash thousands off their asking prices to save a few hundreds is utterly absurd.

    But then, it’s the sort of twaddle we’ve got used to from that jumped up self publicist..

    “Tomorrow, and tomorrow, and tomorrow,
    Creeps in this petty pace from day to day,
    To the last syllable of recorded time;
    And all our yesterdays have lighted fools
    The way to dusty death. Out, out, brief candle!
    Life’s but a walking shadow; a poor player,
    That struts and frets his hour upon the stage,
    And then is heard no more: it is a tale
    Told by an idiot, full of sound and fury,
    Signifying nothing.”

    –From Macbeth (V, v, 19)

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  • Dim St Thomas…for a while now, according to the Land Registry statistics, the overall number of sales has been dropping and yet the actual number of sales of properties priced at £250k+ and in particular £800k+ have increased. If you have fewer houses selling but more of them are higher value dwellings, the average will appear to be going up far faster than is the reality, and actual falls could even be masked by this effect. Yet the VIs have made great use of big figures to talk up the market, never-the-less. Now that a similar but opposite effect is making their figures look bad, they suddenly start pointing out the statistical anomolies!! Well I never, what a surprise. Scumbags.

    As far as I’m concerned it’s about time some statistical anomolies worked in our favour and it will do wonders for creating negative sentiment, plus I believe actual selling prices have been going down for a while now anway so nice to see more reality come to asking prices too.

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  • “The lower number of 4+ bedroom properties coming onto the market has also depressed average national asking prices by 2.6% (£6,298). ”

    Converted,
    How comes that there was no Firstrung comment attach to explain the lunacy of the above statement.
    Lower supply –> Price decline!!??

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  • Much as I hate to defend a VI, the mathematical argument is sound.

    Try to sell 2 houses at £100k and two houses at £400k, in order to get an average you add it all up and divide by 4, which is £1m divided by 4, which is an average of £250k.

    Try to sell 2 houses at £100k but only 1 house at £400k, your average is then the total divided by 3, which is £600k divided by 3, which is £200k – i.e. average becomes lower even though asking price for houses has stayed the same.

    BUT, as I say, they have been using a similar but opposite anomaly to talk up prices for some time now, so nice to see things work in the favour of a crash for once!

    Confused…”Lower supply –> Price decline!!??” – yes but lower demand too, although I agree with you about how they conveniently forget their own nonsense arguments whenever it suits them.

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  • ‘impulse sellers are being put off by the additional costs and hassle of a pack’

    What are impulse sellers – do they wake up in the morning and think “You know I’d really like to sell my house today.”

    Does this mean that some of the kite-fliers aren’t bothering now? That was, after all the expectation with the HIPS packs.

    It’s a shame for RM that those potential sellers aren’t there now to continue to distort the already somewhat meaningless *asking price* index.

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  • I guess there won’t be a general election then once people realise their cash machines are drying up.

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  • tyrellcorporation says:

    Denzil, NeuLabour have just appointed Saatchi as their election gurus. I anticipate a huge cash injection soon and/or IR cuts to keep the People feeling good for just a few months more. Expect an election announcement in the next two weeks. GB is gonna make a run for his mandate before UK PLC turns to rat sh*t!

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  • Saatchi are well respected.

    Remember the Tories in 79 with the dole queue poster, they made that.

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  • Got to agree with you there tyrell. I think the only reason for a snap election now will be down to Labour suspecting that the next 6 months are going to be a ****ing bloodbath. Let’s see what they do.

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  • dugmug, I think you’re right about property prices falling anyway. The last paragraph before Miles’ quote states:

    “Of those that are coming to the market, only sellers of flats have held their asking prices steady. To attract scarce summer buyers, sellers of terraces, HAVE TRIMMED THEIR ASKING PRICES by 1.7%, seimi detacehd by 2%, whilst detached lproperty dropped by 4.2%.”

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  • apologies for so many typing errors. (hope spell-checker is not around!)

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