Thursday, Apr 25, 2013

A sentiment not shared by would be buyers

Mail: HP predicted to rise 4.5% in 6 months by UK homeowners as confidence returns

"Three quarters of homeowners are predicting house prices to rise this year, and by an average of 4.5 per cent over the next six months. In a sign of confidence returning to the market, it is the biggest predicted price increase by UK homeowners in over three years". Where is the cash (in terms of pay rises)?

Posted by alan @ 01:22 PM (2532 views)
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13 Comments

1. hpwatcher said...

Asking prices in N. London have jumped about 30% - it's nuts, they will never sell!

Thursday, April 25, 2013 02:02PM Report Comment
 

2. dill said...

Inane.

Thursday, April 25, 2013 02:05PM Report Comment
 

3. mark wadsworth said...

Sod 'em. Overpriced is overpriced is overpriced. I do not know when this madness will end, but it is still madness.

Thursday, April 25, 2013 02:07PM Report Comment
 

4. khards said...

A bubble within a bubble that 'they' did not see coming. Marvelous!

London prices are looking worse than Dublin's during the boom in Ireland. The current prices will not hold, they never hold without strong wage inflation.

I would expect some high profile selling this year from TPTB.

The question is who will bail out the UK's banks on this occasion?

Thursday, April 25, 2013 02:19PM Report Comment
 

5. tom101 said...

IMF will just 'order' our Government to impose a xx% haircut on savers to repay...... where have i seen this before?

Thursday, April 25, 2013 05:16PM Report Comment
 

6. Wakeup said...

Sadly, prices are rising in London and will keep rising. I hung on for 15 years waiting for the big correction in London - never came. Well, it did come for some - those with foreign currencies it has come. I remember when the Australia dollar some ten years ago was over $3 for £1 - since has dropped to around the $1.40 mark ... a 60% drop. So, for those with foreign currencies, London is cheap for them. It's only us mugs here saving our £s hoping to buy on our frozen incomes, getting priced out. As the Bank of England prints 100s of billions of £s, the currency is decimated - this destroys the values of your savings, increasing inflation, forces up prices of houses in £ terms. It doesn't bother the asset rich that the £ is decimated - they own these properties in prime areas so as the currency has gone down, the property prices have risen, thus protecting their money in real terms - it's only us phlebs with cash in the bank that have been hung, drawn and quartered - the prudent and responsible must be fleeced for the crooksters and gamblers. I have watched property in not prime London areas, but the ripple out areas such as Fulham, Balham, Battersea and Putney - at the height of the housing boom and the credit crunch that arrived with the collapse of Lehmann Brothers in 2008, I have seen property prices rise by 50% in these area - strange but true. The seesaw as the £ goes down one end, and the price in £s of the property in these areas have been pushed up. One bed flats that were going for £250k in 2008 - they are now £375-£400 .... I'm not exaggerating, as I have been following the market closely and have seen the same properties come back to market over this period. And now Mr Osborne has come up with the +100 billion Funding for Lending Scheme to help back mortgages for folk to climb aboard the property train.. I ask you this - would you prefer to be left holding your ever worthless £s in some bank account paying no interest, or for it to be invested in a London property that the government will ensure they pull out every stop to make sure that property prices are propped up and are kept rising? It truly is a sad state of affairs, teaching people that hard work and savings along with being responsible, is nothing but a mug's game. However, a country built on such foundations of rewarding the irresponsible over the responsible will crumble and collapse from the inside out. Britain is such a country that promotes rewards for the irresponsible. So, I shall now let you get back to work on your frozen wages in worthless £s, in the hope of buying a property against those outbidding you with strong foreign currencies or those who are asset rich who can borrow at the lowest of rates. You are their rat on the wheel, running, sweating, 'aspiring' (as George would say).. getting nowhere, but only ahead in your own mind, until the reality kicks in that you are nothing but a rat on a wheel. Has it kicked in for you yet?

Thursday, April 25, 2013 07:31PM Report Comment
 

7. peter_2008 said...

yep, asking price around my place jumped by about 10% almost overnight, right after the 2013 budget.

"What signs would make you think that property market is improving?" Errr...why is "government printing money" not on the top?

Thursday, April 25, 2013 07:44PM Report Comment
 

8. grumpybob said...

Hype and wishful thinking, IMO. Now it's Spring, the VI's want to stir up as much interest and panic as possible among would-be buyers. I remember the same happening before the crash of the early 1990's (the sentiment in the media could be summarised as "Quick! Beg, borrow, or steal but get on the ladder while you can because prices are just going up and up and up!").

There does seem to be a big jump in the number of properties coming on the market in Southampton and district in the last month or so: far more than at the same time in the last few years - but they are still priced far out of the reach of the average Joe. Maybe this is the year the owners have been hanging on, by their fingernails, for since 2008 (hoping that they can sell up and move on before people realise that the numbers still don't add up. I think a lot of these sellers will be no further forward by the time this year's the peak selling season ends.

Thursday, April 25, 2013 08:02PM Report Comment
 

9. khards said...

If asking prices have risen that much then when they are inevitable reduced, they may keep reducing past the previous price level as confidence is destroyed.

On another note two of the older relatives have their houses back on the market again, they will not sell for less than X as one wants to clear debt and stay in a similar house in the same area (good luck with that) and the other one wants to downsize to a nice bungalow.

These new listings are the people who tried to sell a few years ago and came to the conclusion that they couldn't sell without dropping the price, so withdrew from the market - expect these same properties to be withdrawn again as the owners are insolvent.

Thursday, April 25, 2013 08:57PM Report Comment
 

10. Dude said...

it's not often that i'm speechless .... but this takes the biscuit ...

http://www.dailymail.co.uk/news/article-2314573/Buy-let-landlords-main-beneficiaries-80bn-Bank-England-lending-boost-state-tries-stimulate-property-market.html#comments

Thursday, April 25, 2013 09:19PM Report Comment
 

11. britishblue said...

Major events burst bubbles. Who knows whether Europe will be the catalyst that evenutually bursts the UK housing bubble. Spanish unemployement rose to 27% today or 57% for youth unemployment. The situation is the same in Greece. When someone in these countries starts a peaceful revolution the exits from the Euro are going to happen. Who knows whether this is a 1 year away or 10 years away and whether it will be peaceful or aggressive, but when it happens the Euro zone could break up quite quickly. I must say if I were one of the 57% of youths unemployed in Spain i'd be feeling pretty militant now and i'm sure if a young firebtrand leader appears it is inevitable that some kind of revolution will happen. With modern communication it would be much easier to happen than in the Lenin and Trotsky days.

Thursday, April 25, 2013 11:05PM Report Comment
 

12. khards said...

"Major events burst bubbles" - Not necessarily!

As we have seen recently with BitCoin, Gold and Apple shares. No big events but they all crashed back down again, these assets falling themselves were the big event.

No big event or black swan is going to come along and crush the UK housing market, the price falls are going to happen slowly and steadily. The trickle will turn into a flood, the problem is that people are in denial about how much their property is really worth - you can clearly see this from watching Phil Spencer.

The way the UK is heading with it's downgrades, would you like to own assets in a country that will soon be Junk rating and is printing its own money.

Friday, April 26, 2013 09:55AM Report Comment
 

13. nickb said...

Grumpy,
Have you notice in Soton the number of properties that have "sold" signs outside them only for these signs to revert to "for sale" shortly afterwards? I don't think anything is really moving. It's fun every now and again to walk down London Road and look at the demoralised EAs inside, desperate for a sale.
N

Friday, April 26, 2013 01:38PM Report Comment
 

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