House Prices Rising again UP .5% Sept - Oct 2005

Bestthingsinlifearefree

With the latest figures from Right Move today showing house prices rising again.

Plus last weeks latest Halifax figures showing house prices rising.

Plus the ODPM figures showing prices stable.

We Have just had 3 separate surveys ALL showing price rises / stability.

Looks like we can all agree the house price crash has been cancelled and prices in 2005 / 2006 are stable / rising gently.

Spot the trend ?


http://news.money.msn.co.uk/article.aspx?as=article&f=uk_-_olgbbus&t=3581&id=1438279&d=20051017&do=http://news.money.msn.co.uk&i=http://news.money.msn.co.uk/mediaexportlive&ks=0&mc=10&ml=ma&lc=en&ae=windows-1252


http://news.bbc.co.uk/1/hi/business/4314754.stm



http://uk.biz.yahoo.com/051010/214/fu3cp.html

meanmachine_2

Bit slow today with the propaganda, aren't we?

http://forums.moneysavingexpert.com/showthread.html?t=102628

Bestthingsinlifearefree

propaganda ???....its just facts about whats happening in the market.

don't blame me its not my fault house prices have started going up again / stabilised.

Don't shoot the messanger just because you don't like the message.

zag2me

I think its just people are asking more for their houses, I tend to look at the ODPM figures as they show real house price sales. Certainly in the southeast I see no increases in prices over the last 6 months.

Higher inflation and rising interest rates will cause a major slowdown if they do materialize.

meanmachine_2

Bestthingsinlifearefree wrote:

propaganda ???....its just facts about whats happening in the market.

don't blame me its not my fault house prices have started going up again / stabilised.

Don't shoot the messanger just because you don't like the message.

I'm afraid it's propaganda if you only report certain stats that fit with your viewpoint.

I've yet to see you highlight the myriad reports and indices that go against your Estate Agent/VI view of the market.

Or indeed, I've yet to see you acknowledge WHY house prices might not be going up indefinitely, until a single brick is worth the same as a gold bar.

claraten

I recently had my house valued by three different estate agents. The values differed greatly from £425,000 to £460,000. As a result I don't have much faith in them. I'm thinking of selling/buying online through TheLittleHouseCompany. Is this a good idea? Can anyone give me some hints or tips? Especially if you've been successful.

Claraten

devils_advocate

An agent's valuation of your house is not a market valuation of your house; its a marketing valuation. Its sole purpose is to market the agent's services to you, the seller. If an agent doesn't persuade you to sell your house through them, they won't get any commission, and therefore they won't stay in business. So they have to clinch the deal, and get you to instruct them, as opposed to the other agent round the corner.

Especially in todays flat markets, the fact that they then can't produce any viewers at that price or offers from viewers at remotely near that price will then probably get the seller to change agents. So what, from the agent's viewpoint? They haven't got any commission from the non-sale, but at least they got a chance of it, and whilst it was their chance, nobody else had the chance.

So that's why agents always ask sellers if they've had any other agents valuing the property. Its not that they don't have a clue about what local propety has sold for, and they want to copy someone else. If the seller excitedly says "yes, and they vaued it for (insert 15% over what the agent thinks it will sell for)" the agent knows that the instruction will probably go to the agent who comes up with the biggest valuation. If the client says "yes, but it seems an awful lot" , the agent knows the client may not be as price sensitive. The good agents, that is the ones who sell the most properties relative to the competition, will always spend a lot more time talking to the potential seller than looking at the colour of the wallpaper in the master bedroom.

Sellers, next time you have an agent round to do a valuation, think about it.

wibble68_2

Bestthingsinlifearefree wrote:

Looks like we can all agree the house price crash has been cancelled and prices in 2005 / 2006 are stable / rising gently.

Yes prices in 2005 are stable.

However, your talking up of the market displays a very short term view.

In fact you are only able to use short term views to support your argument.

The reason the market has stalled over the last 12 months is that most potential FTB's can't afford to get on the ladder unless they stretch themselves by borrowing huge amounts of money.

The only outcome I see for the market is somewhere between stagnation and correction for the next 5 years.

Any house price increases over the rate of inflation will tip the scales towards a correction.

meanmachine_2

But a lot of people are like bestthings - very shortsighted.

They look at their monthly repayments only, not the sheer size of their debt.

I still maintain that current prices - though wildly above where I'd like them to be as I'm debt averse - are sustainable...provided interest rates don't go up.

If they do, then the market's stuffed.

But I can imagine them going down in the next six months, for political reasons. Now some shops are warning of a "retail armageddon". Yawn. In reality that means not ALL shops are doing better than at the peak of last year's boom. So what?