House prices dived in June

house123

chucky wrote: »

they've dropped -0.4% but they've "dived". they rise +2.4% and they just "rose".



i'm surprised that we're now using asking prices as the source of house prices now?

Remember, It's a swing from +2.4% to -0.4%, 0 is not the starting point.

LydiaJ

I don't think I agree, house123. If the swing was from +2.4% to 0.0% that wouldn't be a drop, it would be a "stop rising". A swing from +2.4% to -0.4% isn't a dive. At most it's a "stop rising and then fall ever so slightly".

Much as I would love to see HP fall, I think the +2.4% and the -0.4% are both just noise. HP are stagnant, "within the accuracy of the measurements" as the scientists put it.

chucky

LydiaJ wrote: »

I don't think I agree, house123. If the swing was from +2.4% to 0.0% that wouldn't be a drop, it would be a "stop rising". A swing from +2.4% to -0.4% isn't a dive. At most it's a "stop rising and then fall ever so slightly".

Much as I would love to see HP fall, I think the +2.4% and the -0.4% are both just noise. HP are stagnant, "within the accuracy of the measurements" as the scientists put it.

you're right they are noise - plus they're just asking prices...

it's not a 2.8% drop either from +2.4% to -0.4% - it's an index and doesn't work like that...

June 2009 £226,436
May 2009 £227,441

Thrugelmir

ruggedtoast wrote: »

According to the threads on this board house prices are both rising and falling at the same times. Surely this must delight both bear and bull alike?

I've managed to sell my own house to myself for more than I'm paying for it

Thrugelmir

LisbonLaura wrote: »

Quite right Hamish! - Asking prices are an acceptable guide to the state of the market. A lot of bears knock them , but I don't.

But asking prices only reflect houses on the market so what can you read into that?

Two semi detached houses may appear identical from the outside , but the interior may well mean than one is worth £10k more than its neighbour. If the more expensive one is for sale then asking prices are higher.

My neighbours held at for a year. But finally reduced by £25k to sell.

carolt

MrDT wrote: »

Asking prices, right?

Rightmove property price index seems pretty pointless to me.

I stand by that when asking prices are going down as well as up.

Absolutely - other than a survey of economic optimism, it has no worth whatsoever as a survey of prices.

I can ask a million quid for my car - doesn't mean it will sell for that or is worth that.

I've always maintained that, when asking prices rise and it is trumpeted on the front page of every national newspaper.

So - just to prove I am being consistent! - I hold to that view, even when prices fall.

There's one house I've been looking at - came on a year to a year and a half ago at 330K, gradually reduced to 300K, then came off the market.

Came on a couple of weeks ago for 300K for about 1 day - now back on at 312.

This says nothing about the market, except that it is still overpriced at any of those prices (another in that street sold recently for 238) - all it tells us is that the would-be vendor is either not very serious about selling, or terribly indecisive. Or bonkers.

Ie. nothing useful about the state of the market at all.

geoffky

HAMISH_MCTAVISH wrote: »

Desperate is as desperate does.......

(to paraphrase a certain movie)

Perhaps geoffky is worried about missing the boat again.......

RUN, geoffky, RUN!!!!!!:rotfl:

i have not missed the boat... but you bought in the very month in 2007 that was the very very top of the market...no wonder you need reassurance and your decision reminds me that you DID not have a clue about markets and their behavior and after doing a little homework after you have bought at peak you are praying that you can get out unscathed.....but guess what...its game over for a very long time..

wolfman

Thrugelmir wrote: »

But asking prices only reflect houses on the market so what can you read into that?

They're a good comparison to actual sales. It shows trends and the attitudes of sellers. Especially when predicting the affect on purchases.

wolfman

carolt wrote: »

Absolutely - other than a survey of economic optimism, it has no worth whatsoever as a survey of prices.

I can ask a million quid for my car - doesn't mean it will sell for that or is worth that.

I've always maintained that, when asking prices rise and it is trumpeted on the front page of every national newspaper.

You're missing the point. It's not a definitive piece of data, but can be used along side sale data.

Purchases are quite low at the moment, one of the reasons being houses are overpriced. So it's important to see the trend of sellers dropping their prices. If purchases remain low, then houses could still possibly be overpriced.

HAMISH_MCTAVISH

geoffky wrote: »

i have not missed the boat... but you bought in the very month in 2007 that was the very very top of the market...no wonder you need reassurance and your decision reminds me that you DID not have a clue about markets and their behavior and after doing a little homework after you have bought at peak you are praying that you can get out unscathed.....but guess what...its game over for a very long time..

Ahhhh, your ignorance knows no bounds.

You may be surprised to learn that the absolute peak in Aberdeen house prices was not until mid 2008.

And that since Q3 2007, prices have fallen a whole 5.4%.... But most of that decline was new builds. Prices for quality stock today are higher now than they were then.

Or that someone buying in Q3 2007, would still be well ahead versus being a "rent-slave" as rental yields are 6% to 8% per year. 16% versus 5.4%........ Hmmmm, I wonder....:rolleyes:

But hey, never let anything as trivial as facts get in the way of a good desperate bear post......:rotfl: