Saturday, November 15, 2014

House sales volume hits a 7 year high

U.K. October House Prices Rise 0.7% as Sales Hit Seven-Year High

At last some house price news that is not London centric. It's the rest of the country that is driving this 7 year high in sales volumes. We were told that MMR and worries about rate rises were curtailing the market, then this news comes in. If this happens under the shadow of MMR and rate worries then there must be some big forces at play. Increasing private sector wages probably has something to do with it but the main driver is almost certainly population growth. People need to trade up because of growing families and first time buyers, immigrants and btlers are eager to buy what they sell. If this news dismays you (as it should) then get behind the campaign to build more. If you are priced out, then a mass building program is the only thing that will save you from the rent trap

Posted by flashman @ 10:20 AM (3804 views)
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9 thoughts on “House sales volume hits a 7 year high

  • In many areas prices have been static for about 10 years and though wages have risen somewhat for ‘almost’ everyone during that time living costs are also up quite a bit.
    As long as interest rates don’t rise I think things will tick along where they are at the moment with little growth in both the economy or house prices.

    If rates rise then it’s game over big time.

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  • I think things will tick along where they are at the moment with little growth in both the economy or house prices

    Not so sure, UK government deficit and debt continue to significantly increase. Next big economic stories will relate to the scale of cuts that are needed….no one will care about what house prices are doing. No increase in wages…unless the price of oil drops hahahahahahahhahaha.

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  • The main story here is sales volumes reaching a 7 year high. Tiny rises/falls in house prices are neither here nor there

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  • Nationwide said 0.5% and 9.0% in the year. My guess is that it will drop from 9.0% for the November stats, based on RICS comments (previous posts).

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  • Moreover, the figures in this article come from Acadata and LSL Property Services – and of course they would report that, they are or represent estate agents – but if you actually read the report:

    ‘Annual sales growth has reduced in England & Wales from 28.0% in Q2 2014 to 15.4% in Q3 2014, down
    by 12.7%. The region with the largest slow down in sales between the two quarters is Greater London at -17.5%,
    with the West Midlands having the smallest reduction at -7.9%. ‘

    So, not quite so rosy.

    UK housing might have done well over the past year – due to the 42 billions of FLS pumped in – but the fact is that the times have changed. The days of big UK growth are over; the UK is now a low wage high debt economy…that’s the lesson of the last 8 years, and it’s becoming more and more clear.

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  • Like I say, the story here is the surprising increase in sales volume and the fact that it is driven by the rest of the country ( not London).

    The number of properties changing hands rose to a seven-year high. Transactions climbed 9 percent on the month to 90,500, driven by demand outside London. Prices also rose but that’s not nearly as important.

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  • Annual sales growth has reduced in England & Wales

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  • Hpw, “all the way to Bloomberg”? What if Flashy checks Bloomberg long before the Daily Mail?

    This is actually massive news and quite surprising. Maybe HTB has picked up now that rates have fallen again. It was always an ex-London phenomenon.

    That the rate of growth has slowed is fairly meaningless. London has died down and even in 2007, sales were only 125k/mo IIRC. This is above average for ex-London, surely.

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  • This is actually massive news and quite surprising.

    Um, it’s not really surprising given the money that’s been pumped in – over the past 1.5 years – via the support schemes. What’s surprising, is the fact that so many folks are quite happy to deepen their debt so much – it can’t be that the money is coming from an increases in wages or a large scale recovery – as there hasn’t really been anything significant.

    In the areas where I have been looking, realistically & low priced houses are selling, but those around the usual price for an area are just sitting there for months and months.

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