Rightmove HPI says house prices down 2.2% last month.

London house prices down 3.9%

 

 

Oh Yea ,Oh Yea ,Oh Yea !!!!!! (town cryer voice )

The price of an average house will rise 14 per cent over the next four years, reaching the highest ever recorded in Britain, a report will say today.

Respected analysts the Centre for Economics and Business Research predict the typical home will be worth more than £200,000 by 2015, up from its current £176,000.

While the expected rise is still likely to be below inflation, the positive news will come as a relief to homeowners, many of whom have been left in negative equity as the value of their properties collapsed since the recession. Average house prices peaked at £191,200 in 1997.



Read more: http://www.dailymail.co.uk/news/arti...#ixzz1VS8qQ3kQ

 

Ha ha ha..

Daily fail.........

I suppose if your house is escalating in price below the level of inflation,its actually worth less ???

On a serious note,i doubt this will happen,IMHO there will be another couple of years of house price correction and then house prices may start to recover.
BOE % rate still has to go back to a normal level,it cant stop where it is forever.When the inevitable does happen,this will also stall any kind of house price/sales increase.

Its uncertain times...But it aint getting any better soon,look at the state of the economy!

 

In a further boon for homeowners, the CEBR believes the Bank of England will keep the base rate low for several more years. It was cut to 0.5 per cent in March 2009, slashing the cost of mortgages for millions. Mr McWilliams predicts the base rate is ‘unlikely to rise above 2 per cent before 2015’.

Read more: http://www.dailymail.co.uk/news/arti...#ixzz1VSJUqyVg


And the sun will shine until way into September !!!!!!!!

 

Yea... Agree to some extent.

Although i would expect to see BoE rates start to rise next year or early 2013.

Who knows for sure,this country is in such a bad way anything could happen...House prices going up isnt one of them though.

 

Average house price £200k by 2015.
Cost of a loaf of bread in 2015? £500. It's all relative.

 

Not much seems to be selling ....... there was a little rally 4 weeks ago around where I am looking - most of the SOLD properties have been put back on the market.

Seems the Valuations for the Banks are coming in less than the agreed price in 90% of instances .... this means that the LTV goes up and the Mortgage Offer is withdrawn.

It shows an insight into some peoples minds that they offer £X for a property when all the intelligent minds know that it truly isn't worth that ............ the valuations lend a helpful hand to these delusional characters.

10% OFF asking is an absolute maximum offer which should be made - the evidence is that property actually selling is selling for around 40% less than asking ... the figures speak for themselves ... the average asking price is 40% higher than the average selling price.

 

Sounds like only distressed sellers are selling then?

 

That would appear to be the case ..... of course, cash buyers are not stopped by low valuations (as they don't need a valuation at all).

The silliest money I have witnessed is the 'new' money .... by that I mean the £300k which has just fallen into the lap by way of inheritance, this is then spent quickly - almost without thought - on a property.

Thus maintaining the house of cards.

 

So, where does the market stand now then?

The InterBank lending is drying up (just as it did prior to the crisis in 2008).

It's a funny situation at the moment ... you have Banks who are being very lenient on their borrowers, mortgages are getting harder to get again (for the cash strapped), sellers are not dropping prices to anywhere near what's needed to get the market moving again and we stay in stalemate.

How will it move on?

 

It wont IMHO......

Will be stagnant until spring 2012,then prices will drop again if people want to actually sell..
I expect 10% drop in sold price between now and end of 2012..

 

There seems absolutely no urgency to sell at the moment.

Executor sales are eventually going through (but still struggle).

No repo's to drag the prices down - no Interest Rates to bear down on the over-stretched.

The Agents I talk to are telling vendors that whatever price they market at, they may not sell ...... so, they remain at high prices sat there.

I must admit to having offerred on a property by the beach ..... it has been on the market since April 2010 (yes, 2010). I offered 15% OFF asking - they came back with a minimum drop of around 7%! Obviously, I told them that I only make one offer - there is no need for a buyer to haggle these days .................... it remains unsold.

As long as sellers are not prepared to drop to thye price a willing and able buyer has offered, nothing will move (and if they don't have to sell, why not wait it out I suppose?)

 

Yet another perspective on things - http://www.bloomberg.com/news/2011-0...rack-says.html

Down 3.7% in a year... + inflation = around 8.7% drop.

Anyone still denying things are not so good in the world of house prices? The outlook, by the way, remains terrible. This already large decline is nothing compared to what would happen if credit started drying up again.

 

The main news this evening headlined house prices will increase by 21% by 2015 !!

As did the Daily Express this morning .

Due to a shortage of houses being built ,currently less than half the amount needed for the growing population .

Who,s right ??

 

Look at Richard Desmond's property interests then tell me he doesn't have a vested interest in keeping the property bubble inflated. What better way to do that than splashing it all over a national newspaper. Something he does quite regularly.

 

I look at what is happening, not what might happen if a bunch of magical pixies came along and sprinkled their dust on the housing market. Even 21% would probably still be under inflation.

 

Nice Collage !!!! To Flightman

Does look as though someone is stuck on it !!

Not the only one saying it though if its landed on prime time news .

 

The news just reports the flavour of the day. Can't really base much of an opinion on that.

 

I would say you are simplifying it a little too much there .There has to be some foundation for what is reported .Otherwise we would all just read comics instead .

 

Sure is, we just sold and now have 10k less than we planned for the deposit on our next place. We had to sell as we need more bedrooms and with the forecast looking not so good, we accepted the lower offer. Been on for 8 months.
We are just glad we can now move on and hopefully in doing so we will massively under-cut the seller

 

Lol. Well what else do you think they report? Their outlook for the economy changes more frequently than my pants. All they do is report data and the generic interpretation of it, they never analyse because that's not their job.

If the BoE came out with a statement saying things were looking fantastic, it would be on the news tonight and you'd probably post it on here. But what difference does any of it make at the end of the day?

How many times, for example, has the BoE revised their growth forecasts downwards? And now it looks like we're going to be heading back into recession. Everyone gets burned in the hunt for investments, but historically people who blindly follow others' advice get burned the worst. Read some books and you'll be better than these jokers (the propaganda machine).


Alan (true cynic)

 

Cynic ???

Surely not,just a realist..

 

well, after all my bearishness regarding the housing market throughout my time in England (2001 onwards), I've finally gone and bought a house. We've exchanged contracts already and we're completing on Friday - yay!

It's a "two up, two down" in need of some updating, but at least it'll get the mrs off my back. There has been a little bit of a correction around here since 2007, but most of the drops were gained back during the latter half of 2009. It's still cheaper than it would have been in 2007, though, so still happy.

We're essentially moving into the "same" house on the same road, with the only differences being that our rented has a small kitchen, the new one has a largish extension for the kitchen. The new one also has a better garden and looks in much better condition from the outside (and the roof isn't leaking...), although the inside is about the same. It also has double glazing and cavity wall insulation, which will hopefully be a god-send in winter. All-in-all, I think it's a "better" house, but it might just be my rose tinted spectacles...

The interest portion of the repayment mortgage will be about 250 more than the current rent, and we've fixed for 5 years.


The reasons for buying were partly to do with interest rates and inflation. I.e. interest rates on our savings were terrible and inflation is high. At some point, I expect this to feed into wages, so at least this move should protect our "deposit" from the effects of that.

The biggie, however, is the fact that the government and the bank of england have that printing press of theirs... when the SHTF next time, there will be lots of temptation to fire up the printing press again, which I eventually think will end up in hyper-inflation. Looking at the debt levels, it's either hyper inflation or default (hyper inflation would also be a form of default of course).

 

I'm by no means an expert and, as said before, you're not going to sell unless you need to sell so fluctuations in the house price is meaningless.
I still think that houses in the right location are selling very quickly.
We used the poor market to stretch ourselves for retirement and bought two houses whilst also renting out our home as well.
We were just lucky with our new one, lady renovated but hadn't done her homework on the builder. Result was we get a house that's 75% bigger for less than the norm in the street and 3 weeks snagging!

 

Good on you fella .(To Henrik)
In before the next "Boom "
Always good to start with a doer upper .

May I be so bold as to ask what a 2 up 2 down costs in London these days ??

 

I'm out in the 'burbs (Bromley / petts wood area), but the house set us back 300k. On for 325 originally and sold within a week on the market. A big reason the seller accepted a low offer was that we were first time buyers with a mortgage etc in place.

There were six houses up for sale in the same road around may time, and all of them have sold (we viewed three of them). I realise that sold subject to contract sometimes falls through, and one of those houses did, but it's since been SSTC again.

 

Well, it's a funny, fickle, thing, the Housing Market ....... somehow, and I don't know what's happened, but property is selling pretty quickly at the moment - in the South, at least.

Properties which have been on the market for years are selling ..... properties which are appearing on the market for the first time are selling (sometimes within a day!) if priced right ......

It's like a switch has been switched ... sentiment seems to have returned (don't know for how long).

Mortgage approvals are up on the month (leading indicator), transactions are higher, what has happened?

Are people just fed up waiting? Have the sellers won the stand-off? Are people feeling that the worst is over?

I cannot see any reason for this upsurge in buying?

 

Sweeping generalisation there Pete. I live in the SE and the properties I see aren't selling at all.

 

Well, I have relatives buying and selling in/around Maidenhead in Berkshire. They couldn't sell for 3 years and have now sold at close to asking.

The house they wanted 3 years ago also hadn't sold ..... but, oddly, when they sold;the property they wanted had sold the same day!!

I am looking for a place on the South Coast as a weekend bolthole ... near the sea/New Forest. Nothing has sold, well not many, in the last 3 years ..... I have been waiting the price drops.

Price drops haven't happened, but property has been selling very well there over the past 6 weeks.

I hope I haven't missed the boat .... and this is the start of a mini boom - I can't see it somehow, but maybe people are just feeling confident that the worst is over?

I'm looking at a detached property tomorrow on the coast ... it was sold within a week of coming to the market. But the buyer couldn't sort a mortgage. So, the offer from these buyers was not a proceedable offer.

But, try explaining to the vendors that whatever they were offered from someone who couldn't proceed has zero value as to what the place is worth.

A cash buyer offer, willing and able to buy, is the true value at that point ...... but, they think it is worth what they were offered and accepted 5 weeks ago! And I want to pay 15% less!!