Wednesday, June 10, 2009

Chesterton Humberts midsummer bounce

Property prices forecast to increase by mid-summer

Two industry commentators have forecast property values to increase by mid-summer, after yet more evidence has emerged that house prices are continuing to stabilise. According to the latest, Chesterton Humberts Poll of Polls, the average house price fell by just 0.9 per cent in May to £162,473.This means that just £1,503 was wiped off the price of an average house in England and Wales last month, compared with the previous six month average of a £2,149 monthly decline.

Posted by jack c @ 11:49 AM (2154 views)
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11 thoughts on “Chesterton Humberts midsummer bounce

  • jack c, you really should be a little more discerning than to put ‘forecasts’ here from VIs. It’s not really news at all.

    Its just advertisers reeling in favours from broadsheet editors. More fool you if you actually believe it too.

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  • Paul, I dont see this as anything other than a residential property article from today’s FT – In my personal/professional experience there is currently little or nothing to suggest an uplift in the market however this is based purely upon the restricted geographic areas in which I work.

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  • Okaay.

    So you believe that house prices will go up in the future in that area because the area where you work is *special*, according to … an estate agent.

    Hold the press everyone. This is breaking. The wind of change is coming. It’s breaking wind!

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  • “The average time it takes for properties to proceed from being under offer to exchange is now in excess of 68 days, significantly up from the average of 27 days around 18 months ago.”

    Now thats an interesting stat. The reason is because as soon as there is a whiff of the market running out of steam on the upside this caution will be magnified (time extended) and gazundering will probably take place.

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  • techieman @ 4. It’s a long time since I last conveyed a property, but I do still keep my ear to the ground. While I have managed to exchange on the day of getting instructions, in my experience 27 days would be a pretty quick timetable to exchange and a couple of months more the norm bearing in mind all the bits and pieces that have to be put together. Mrs Crashpad and I did put in an offer on a property about three months ago, and it took us two months to get the mortgage offer through (self employed), so nervous lenders could be adding to the timescale. “Our” property had been reduced by quite a bit before we offered so we thought we were getting quite a good deal, but just before exchange we found the vendor had waltzed off with all sorts of items that were supposed to be included, and then he wanted to gazump us due to the delay and make us pay to put all the stuff back. I responded by demanding 25K off, which after words with the selling agent he immediately agreed to. We’ve pulled out anyway – “take me for a fool once” and all that. So I wouldn’t say prices are roaring ahead just yet.

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  • Crashpad – I am not a solicitor but once did my own conveyancing (unregistered place) and followed the book by Michael Joseph. By the way i wasnt buying – this was just before the last crash.

    I have no reason to argue with you but I am relying on the article re the time taken from offer to exchange. Im not really that bothered by the 27days – just the relationship between what it was 18months ago to what it is now seems like it could be a good indicator. I would like to see this tracked. I take the point about the lenders which i hadnt really considered – i thought it was just a case of the purchasers mulling it over for longer while at the same time they had made a (at least moral) “commitment” to buy.

    I wonder where this stat comes from? In-house or from NAEA?

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  • Ok. I’ve been visiting this site for the last couple of years and this is my first post.

    Whilst I really enjoyed my visits for the first year or so and was pinning my hopes on a crash so I could upgrade easily, let’s be honest, it hasn’t actually happened. What has happened is a blip that will correct itself over the next year or two. Slightly disappointing but there you go. I guess I’ll just have to make more money to get where I want.

    But the point of this post is that I find the blinded negativity of most of the contributors to be quite sickening. My statement to those concerned is that you really should get out more and stop wishing for armageddon. This site probably won’t exist in a couple of years The big bang on property prices never came. Get over it and do something more positive and constructive.

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  • Techieman – must admit I don’t know where you can find the stats, I suppose some geek somewhere may have tracked the length of time under offer properties stay on Rightmove and Primelocation etc. Two months to exchange and another to completion was my very rough rule of thumb, although the actual number of hours worked would usually fit well within a working day. The time was taken up with waiting BUT this was about 20 years ago without all the modern technology. Contrary to most of the population, I did find HIPs very useful when buying, because it gives you a lot of info to get your teeth into straight away, and led to us backing out of another prospective purchase immediately (no title deeds and a half mile run of private water pipes with no rights attached). Anyway, we’ll stay renting for now.

    Congratulations by the way on doing your own job “by the book”, especially unregistered. With a heavy heart I have to say that you will almost certainly have done a better job than a lot of present day conveyancers.

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  • crashpad – i had an interesting story about that. As you probably know i had to deal with a solicitor for the undertakings on completion. As i waited for the solicitor to confirm the funds had all been done and dusted, i got a call from an EA stating that the purchasers were angry. I had left about 2 dozen trade magazines in the study – actually it was my mistake.

    The EA had a right go at me – i was quite young then, and i said hang on first of all aren’t you MY agent? secondly i am sure it wont take much for them to move those magazines. (In fact i had been offered about £5k more for the place at the time but i refused as i had promised them they would get it – so i was a bit piss&d off with them for being so petty) thirdly i said oh i see you have given them the keys for them to get in so at what time did we complete? (i had told the solicitor to call them but to call me first… and they hadn’t… i had been unavailable by phone before the EA called)

    Stunned silence followed by ers and ums…… i said hold on a minute i am going to call the solicitor. Called the solictor who confirmed completion had NOT occured. I didn’t call the EA back but when they put the bill in i gave em 25% and told them in a letter they were lucky they got that and that they could sue me for the rest – which of course they didn’t.

    There, glad to get that off my chest!! As for HIPS – i always thought it would be a good idea to have all the searches and stuff done for you, but i assume thats easily done by emails these days. which is why i was surprised that the time could be down to the conveyancers being slow (even though it does mention that and the lender as being obstacles at the bottom of the article.

    Hope you and Mrs Crashpad secure a good bargain whenever you judge the time to be right. Cheers!

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  • Techieman. Thanks for that, and for your heartwarming tale! Property transactions really do seem to bring out the petty side in people. The only complaint I can recall was long ago from some stupid woman who had to spend a fiver at Woolies replacing some curtain runners which hadn’t been left. I wouldn’t be surprised if she still remembers as well. Anyway, I shan’t clog up this thread with stories of meanness, greed and dirty deeds, save to say that the last property crash resulted in me losing my job acting for property developer clients. I took up criminal law, and in many cases found myself dealing with a better class of people…..

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  • Note to potential house buyers. Look at the interest rate offer on savings with Abbey/Santander. Surely they aren’t going to be giving money away at that rate above BoE rate without pulling the cash from elsewhere? Now I wonder what the BoE will soon be forced to do.

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