Property Prices Rising Again


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 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.
looks like Rightmove are trying to generate their Christmas bonuses :cheesy:
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.
Given that Bazzzz was quoting Oatman on a post from over 2 years ago, it just goes to show.

Plus ca change...
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 :)

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 ;)
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

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 technically they have always been in an uptrend since fib terms pullbacks never even went to far as i can see it is still in an uptrend ,however,the time horizon is longer than stocks
forgot to mention.bill dlard of 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
you can trade the case-shiller housing index futures for 10 different us cities on cme
all the housing numbers for the uk are available at the of the deputy prime minister 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
After a recent visit to Norfolk it seems that house price rises in Cornwall are exceeding those in Norfolk.
Yet Cornwall was once the poor relations in everything. Maybe it's the smaller amount of land in Cornwall as opposed to Norfolk ( Traffic, and roadbuildng have dramatically increased in Cornwall in addition to second homes).
So why do you think is Norfolk property cheaper?
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So why do you think is Norfolk property cheaper?

Because most of it may need to be raised 3 foot ?
chump said:
So why do you think is Norfolk property cheaper?

Because most of it may need to be raised 3 foot ?

Accounts for all the snorkels in emergency boxes in Norfolks high streets :cheesy:
Is The Property Boom coming to an End?

Seems the UK Property Market is finally losing steam,prices down in December.

UK Dec house prices down 1.0 pct vs Nov; up 9.9 pct yr-on-yr - Halifax UPDATE
(Updating with analyst comment)
LONDON (AFX) - The UK housing market faltered slightly in December, according to HBOS (LSE: HBOS.L - news) unit Halifax.
In its monthly survey of house prices, Halifax said prices fell 1.0 pct in December from the previous month for a 9.9 pct annual rise, taking the average price to 186,035 stg.
The latest figures are below expectations of rises of 1.0 pct and 10.2 pct respectively.
On a quarter-on-quarter basis, house prices rose 4.2 pct in the last three months of the year compared with the third quarter.
Commenting on the figures, Martin Ellis, Halifax chief economist, said: 'House prices fell by 1 pct in December, but it remains too early to conclude that this indicates a genuine slowdown in the housing market. Overall, prices in the final quarter of 2006 were 4.2 pct higher than in the previous quarter, marking the strongest quarterly rise since the second quarter of 2004.'
Continued economic growth, rising employment and an ongoing lack of supply will continue to drive up house prices over the coming months while higher interest rates, greater pressure on household finances and subdued real earnings growth will constrain demand. House prices are predicted to increase by 4 pct in 2007, Halifax said.
In Greater London, the average price increased to 287,176 stg by the end of the year, taking it above the inheritance tax threshold of 285,000 for the first time.
The month-on-month fall in house prices in December reported by the Halifax contrasts markedly with the 1.2 pct increase reported by the equivalent survey from Nationwide building society.
'However, it needs to be borne in mind that house prices can be volatile on a month-to-month basis and the December reading may well primarily be just a correction after the Halifax had previously reported house prices rising in a 1.2-1.8 pct range in each of the previous four months,' said Howard Archer at Global Insight.
'At this stage therefore, we would not read too much into the December drop in house prices reported by the Halifax,' he added.
Archer believes, however, that the fall in house prices reported by Halifax may provide some mild comfort to the Bank of England, although the bank is still likely to be perturbed by the overall indications of ongoing strength in the housing market.
like all markets.after a strong move there is a period of consolidation.possibly,being overbought in an upward move.during consolidation,there are usually false breakouts.positions re-assessed during consolidation.if small pullback,then expect a continuation pattern.although,it might be some time