Halifax no change 0.0%

Woby_Tide

Doozergirl wrote:

Wow! Not the most unpredictable reading on the whole, we're still positive, but VERY interesting figures on New Build flats. Down nearly 6% Year on Year, the only area of the market on the whole to fall. Surely this is the direct impact of the 'Designer, City Centre Living Apartment' and all the proof potential investors need that this section of the BTL market at least is well and truly flooded?

At least we now have some evidence to show those potential investors we see here on occassion? I don't fancy trying to offload one of those...

Our town is flooded with them at present, and continuing to do so, really can't understand the planners of the town. I know some friends who lost around 10% this year from a failed sale to finally selling purely due to the ever increasing number of identikit 2 beds being built(it's going to be the only victorian built town with no victorian properties soon with current demolition rates)

meanmachine_2

New builds go on the market overpriced anyway, so a 5% fall is modest, imo.

Just because a property is labelled "luxury" by the people who built it, that doesn't make it luxury in my eyes. I always ask myself what these places will look like in 20 years' time. And all I see are council flats.

Horrible.

A well built old building on an established road, with known and established value/demand is always the way to go. That is true luxury.

The LR figures are very disappointing from my point of view. If I'd honestly detected rises in the area I'm looking at, I'd have bought, but I just don't see it. Meh. Makes hometrack's reported falls of 5% yoy look rather surprising.

Doozergirl

They can only have been built to pander to the booming BTL market. It's apparantly well known within the industry that it's only a matter of time before the market completely dries up, but there's plenty enough profit to keep going until that time. At which point they sell off what they have at reduced prices, sit back and count the cash.

Make hay whilst people see the queue and join it... :wall:

Doozergirl

meanmachine wrote:

Makes hometrack's reported falls of 5% look rather surprising.

Am I right that it's based on asking prices? If so, it's only showing the readjustment in vendors' expectations. It is only recently that they seem to have stopped the thinking that if next door was on at x then I can put mine on at x+y%. That rate of rise couldn't be sustained. Better realism in asking prices may be what is needed to keep the housing market ticking over?

meanmachine wrote:

I always ask myself what these places will look like in 20 years' time. And all I see are council flats.

You could be even more correct than you think. Wouldn't the big social landlords be a great place for developers to offload huge numbers of flats when they eventually stop selling.

IN_LIKE_EVERYONE_ELSE!

meanmachine wrote:

Doesn't a rise in mortgage approvals lead to a shift in house prices 3 months' hence, rather than feeding into that month's figures?

Most mortgages that are being written are for equity release to pay off debt, I know this from real life experience, also, most of the lending is adverse or sub-prime related, late debt payments = equity release = remortgage = not a high street lender. This of course will not show on any website. I am happy to rent at this time.

Fully INGed up.

kinesin_2

Some of the analysis has suggested the reason the figures look more positive than expected has been the off plan purchasing.
The build time between placing deposits and getting the things build has been is so long that 12-18months isn't that uncommon.
News reports last month were reporting building companies sueing those investors that had decide to walk away leaving the deposit, but how many newbie BLT will just walk away from a small comfirmed lost, but instead of chase a profit by continuing the purchase.
The huge numbers of new builds around the country must be having some impact on figures, especially in a falling volume market - and these sells might have been signed up for over 12months ago. :eek:

meanmachine_2

Doozer, as far as I'm aware, Hometrack measures sales prices. rightmove is the only asking price index.

It really is baffling.

Hometrack is a new index and is clearly inaccurate. You really can't argue with the LR figures.

Still, I'll continue saving and wait for sanity to return. If it doesn't I'll leave the madmen to their big mortgages.