Monday, February 16, 2009

Rightmove UP 1.2% MoM, down 9.1% YoY

'False optimism’ pushes up property asking prices

Asking prices for homes in Britain are said to have risen by 1.2 per cent last month, a figure that you might think shows the property market bouncing back at last. In which case, you should think again. According to Rightmove, the property website, which revealed the increase, it is down not to a much-wanted revival but to a burst of “false optimism” among those marketing their properties. Miles Shipside, director of Rightmove, said: “A lack of fresh stock leads some agents to suggest a more optimistic initial asking price, influencing a seller to give the most bullish estate agent the instruction to sell. This is a traditional tactic employed at the start of every year to attract fresh stock, but is a shortsighted move for both parties in a falling market.”

Posted by little professor @ 12:18 AM (1354 views)
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6 thoughts on “Rightmove UP 1.2% MoM, down 9.1% YoY

  • This is disinformation AT ITS WORST.

    The reason that asking prices are going up is that LOTS OF EXPENSIVE PROPERTY IS SUDDENLY COMING ON TO THE MARKET.

    That’s right, all those jobless bankers are desperately trying to sell all that lovely prime property that they swept off the market. This shows up in the un-sectorised aggregate indices as “rising asking prices”. It’s just a volume effect.

    Really, folks, think about it: if property prices are going to go up and all prices (not just property) start with credit, if our credit markets are still frozen, where are high prices going to come FROM?

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  • Well, whatever it is, no-one will be buying anything anything as the country is going into a very deep depression….unless of course, as a hedge against inflation…

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  • Eternal Sceptic says:

    It would be nice to see just how many sales resulted from all this increase. I suspect absolutely zero reached asking price. Thia is nothing less than guvmint inspired propaganda to try to demonstate everything is ok. About time the idiots came clean and admitted the system is broke and and no one has a clue how to put it back together again.We are racing into a huge depression and all hell will shortly break loose.

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  • japanese uncle says:

    sneaker

    Great analysis. Of course that should be the case. We all must be aware of the basis of statistics quoted before making any argument. No point of making a fuss about the price transition not showing apple to apple comparision really It’s so easy to delude people by the false use of statistics.

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  • ontheotherhand says:

    Rightmove don’t know their ar5e from their elbow. Shipside says ‘Sales are being achieved at around 25% below peak prices..’ and yet their asking price trend shows a fall from £243,000 at peak to £213,000 last month = 12% fall.

    http://miranda.hemscott.com/static/cms/5/2/8/2/binary/7562123118/335760.pdf

    The only answer would be that discounts on asking prices have widened 13% since the peak. Probably true and so a more important statistic than this 1.2% rise which could easily be a reflection of more houses being offered for sale (their numbers are non-mix-adjusted).

    Hey ho. The number got them in the press and that’s what they wanted.

    25,000 out of 28,000 potential homemovers stated it was a bad time to sell and yet they put their asking prices up?

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  • I thought better of the Times and so I should have.

    I’m not sure many of you read past the headline.

    Also in the article was this snippet

    ”Figures from Eigroup, the property auction company, showed a 22 per cent rise in the number of lots coming to auction in the past 12 months. The Council of Mortgage Lenders said that repossessions were expected to rise from about 45,000 last year to 75,000 in 2009.”

    Also for the fans out there of the film WITHNAIL there was also a link to a group looking to buy the house.

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