Monday, June 20, 2011
Are we the ones who are deluded?
House price rises to ebb away in second half
Rightmove has changed its forecast 2011 will end with house price falls and now expects an increase of 2% for the year as a whole. Rightmove's index revealed the average property asking price grew for the sixth consecutive month by 0.6% in June to £240,394 - the highest price ever recorded by Rightmove for June.
Posted by khards @ 12:51 PM (1777 views)
4 thoughts on “Are we the ones who are deluded?”
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taffee says:
the average asking price is now 50% higher than the sale price which imo makes rightmove a laughing stock
the only useful indicator is actually selling prices from land registry and volume
sureseam says:
Radio 4 this morning commented that lending was up MoM due to remortgaging rather than properties changing hands. In this article the CML director refers to “activity” which delightfully blurrs the two.
He also refers to bank holidays … this old chestnut is way over worn. Seriously – most grown ups did notice a cluster of bank holidays; so what is the agenda behind the remark. My suspicion is that such holidays displace activity rather than reduce it.
As for this: asking prices represent vendor hopes. Rather than actual financial data, this represents a kind of sentiment index that is news worthy because it is towards an extreme. A sentiment index at an extreme is often a sign of an impending move in the other direction.
A final remark … house price movements have some correlation with equities; and, several equity indexes have broken out of their up trend so the second half of the year will be interesting on several fronts.
sureseam says:
Taffee @1
Whilst I agree, I can’t persuade the wife to believe Land Registry because so much gets excluded from the stats.
Shavedchimp says:
“the average asking price is now 50% higher than the sale price”
Can that really be true?