Property Prices Rising Again

Trader333

Moderator
8,655 981
I spotted this on Yahoo:

LONDON (Reuters) - House prices rose at their fastest pace in at least 18 months in October, pushing up the annual rate of inflation in the sector for the first time this year, property website Rightmove.co.uk says.

Rightmove said asking prices for houses surged by an unadjusted 3.3 percent this month after falling 0.6 percent in September. This was the biggest increase since Rightmove started collecting data 18 month ago.

The annual rate rose to 9.8 percent from 9.1 percent last month.

"There's been a clear upsurge in activity, with many first time buyers and investors back looking for properties, particularly at the cheaper end of the market," said Miles Shipside, commercial director of Rightmove.

He said the higher prices were being driven by a shortage of properties for sale.

House prices are a closely watched economic indicator and they often move closely with consumer confidence.

Prices have boomed in recent years as consumers have taken advantage of the lowest borrowing costs in a generation to fund property purchases. Rightmove recorded an annual price increase of 26.5 percent in January.

But there have been signs that the market was slowing in recent months as buyers were more cautious about the prospects of a crash in prices like that of the early 1990s which laid waste to the economy.

London, which contains some of the country's most expensive real estate, had been hit hardest, but Rightmove indicated this period may now be over.

It said that prices in the capital rose 4.5 percent on the month in October and homes were taking on average a week less to sell than they did last month.
 

bazzzz

Newbie
1 0
oatman said:
looks like Rightmove are trying to generate their Christmas bonuses :cheesy:

Indeed.

Their February Price Index (http://www.rightmove.co.uk/pdf/p/hpi/HousePriceIndex20February2006.pdf ) contained the most outlandish assertions on the state of the property market in UK. Their figures do not stand up to close scrutiny.

For a detailed forensic examination:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=24736
 

anley

Senior member
2,730 229
NEVER belive any figures by banks, building societies, websites etc that are in the business of property. They will always tell you that things are going up or 'looking up'.

Property prices are down in general year on year and the market is sluggish. Always 'pockets' that are making exceptions.

I can never undertstand why everyone thinks rising property prices are so good, they do far more damage to your pocket than falling prices. Rsing property prices generally just track house price inflation so when people boast that their house has gone up 200% in the last 2 years, guess what so has everyone else's within 100 miles of you (generally).

Net result you have no more purchasing power unless you move to a cheaper area or out of the country which most people don't or can't do.

Of course falling property prices will bring a smile to those intelligent to realise the benefits. But the majority will be whining as they always do becuase they tend to trade with hindsight and get pissed off when they don't sell the high tick.
 

TheBramble

Legendary member
8,394 1,170
Given that Bazzzz was quoting Oatman on a post from over 2 years ago, it just goes to show.

Plus ca change...
 

DepthTangent

Active member
110 5
I suppose rising property prices has nothing to do with the magic of shared equity schemes ? The idea behind Gordon Brown's philosophy of shared equity is founded within maintaining market demand,and this is the fundamental reason for first time buyer demand increasing. Oh, another reason for shared equity is to control your discretionary income via modulation of inflation and interest rates, quite clever eh! Must be nice to be a shared equity owner, I'd wager it to be great to have the option of another 25 year mortgage, after you pay off your half or whatever % after the first 25 years ! Heck, you might even own the property one day if you live long enough :)
 

chump

Senior member
2,212 274
http://uk.biz.yahoo.com//20062006/140/mortgage-lending-time-high.html

Now all we need is another 'bullish' report on the manufacturing sector to go with the last one and you can put the next interest rate rise in the bag....but hey, remember there is no inflation .."it's well contained" (unless you actually earn more money than peanuts)...I know because Ben says so and it must be true as the guy serving Latte's at Starbucks told him that ;)
 

laptop1

Experienced member
1,105 131
There is a good time to buy property

wait till you see, the area awash with sale boards

then wait till you see those sale boards, having been there for so long, they are weather-beaten and starting to rot

thats when to put the pedal to the metal and buy property

anyhow
 

Dentalfloss

Legendary member
63,404 3,726
in technical terms:monthly house prices ave been in an uptrend since 1945/end of second world war.there have been pullbacks in 1973/1989.these were approx 20%.so technically they have always been in an uptrend since 1945.in fib terms pullbacks never even went to 38.2%.as far as i can see it is still in an uptrend ,however,the time horizon is longer than stocks
 

Dentalfloss

Legendary member
63,404 3,726
forgot to mention.bill dlard of chartguide.com collected monthly data of average house prices from odpm/office of the deputy prime ministers office.he has made a bar chart of all these figures.he is anticipating a pullback in the future.but then a continuation of trend/upwards
 

Dentalfloss

Legendary member
63,404 3,726
all the housing numbers for the uk are available at the website.office of the deputy prime minister www.odpm.gov.uk.you need to go to survey of mortgage lenders.they have live tables on the housing market.we have to treat this as a market and look at it technically and fundamentally.on the fundamental side,everybody needs a home but they dont necessarily need to own 5000 vodafone shares
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock