Monday, September 29, 2008

Hometrack: -1% MoM, -6.2% YoY

UK house prices fall again in September

British house prices fell for a 12th month running in September to stand 6.2 percent lower than they were a year ago, a survey by Hometrack showed on Monday. The drop of 1.0 percent on the month to £165,300 pounds was bigger than the 0.9% decline in August and suggests the government's decision to raise the threshold for stamp duty has done little to support the housing market. Richard Donnell, Hometrack's director of research, said, "Looking ahead it is very hard to identify the mechanisms by which the current cycle of weak confidence, declining sales volumes and falling prices can be reversed in the near future." Properties in September typically took almost twice as long to sell as last year -- and the percentage of the asking price being achieved fell to the lowest level on record.

Posted by little professor @ 12:23 AM (1242 views)
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7 thoughts on “Hometrack: -1% MoM, -6.2% YoY

  • I still think these figures are totally unrealistic and that the percentage decline is much higher than this. Where I live, in East Anglia, it’s now not uncommon for houses to still be up for sale some 12 months on and I would say the majority at least six months. The one thing they all have in common is that the prices have either been held or dropped very slightly. I know mortgage money is now much harder to come by but if a property isn’t selling and the price hasn’t been dropped or if it has, only slightly, then realistically the prices are far too high. EA’s admit that the properties selling are the most desirable so if they’re selling at approximately 6.5% then those less desirable properties will have to fall much further. The whole industry is doing all it can to maintain prices and until it recognises that they’ve got to fall a great deal further then sales will continue to struggle.

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  • Agreed completely. I’ve been watching the market here in Derbyshire since October last year, and it is not uncommon to see houses up for sale 12 months on here too, and price drops of the order of 30pc on some properties.

    Another half truth of the news article is that whilst the article states some sellers are accepting drops of 10pc on the asking price, this is often AFTER the original asking price has already been dropped by 10-15pc after months of inactivity. Also, using the internet it is very easy to find sold prices – which are more often and not around 15-20pc below listed price.

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  • It is the same here in the principle city of the South West! We have a property down the road that has not sold for at least 6 months, probably more. The owner wants £170,000. Dream on the average salary here is about £20,000. They may be lucky to obtain £100,000.

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  • Mark Wadsworth says:

    “it is very hard to identify the mechanisms by which the current cycle of weak confidence, declining sales volumes and falling prices can be reversed in the near future.”

    It’s not “hard to identify”, I’d say it was absolutely impossible, camel-passing-the-eye-of-a-needle style.

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  • 6.2% pa – 5 years to the bottom.

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  • Mark, I disagree, I think its just one mechanism and its pretty easy to identify. Get prices down to a sustainable level. I reckon you’d see confidence return, increasing volumes and, by definition, stable prices.

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  • crash bandicoot says:

    It’s the same here in Leicestershire. A house down the road was on at £167k before Christmas. Has now reached £139k and although it gets some viewings (and has been sold STC on Rightmove for three months) still has the For Sale board up outside. Must be hard to find a mortgage these days………..

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