Debate House Prices


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MSE news: Are house prices falling again?

edited 17 August 2009 at 5:11PM in Debate House Prices & the Economy
34 replies 985 views
MSE_GuyMSE_Guy MSE Staff
1.7K Posts
I've been Money Tipped! Newshound! Chutzpah Haggler
This is the discussion thread for the following MSE News Story:

"Sellers have dropped typical asking prices over the past month, according to property listing website Rightmove.

It says the average price being demanded is down by £5,100 (a 2.2% fall). A month ago, it reported a 0.6% rise ..."
Read the full story:
Are house prices falling again?

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This thread discussion had started before the news story was published. We’ve inserted this post so all the discussions are in one place. Thanks to shakerbaby for the original post.
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Replies

  • HAMISH_MCTAVISHHAMISH_MCTAVISH Forumite
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    shakerbaby wrote: »

    It was negative last month too.

    But the sold price indices were still positive.;)
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
  • HAMISH_MCTAVISHHAMISH_MCTAVISH Forumite
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    "Rightmove, the property website, said that the main reason for the fall was that owners selling in the summer months tended to be more “aggressive” with the price because they need to sell but know that there is a smaller pool of buyers.

    It added that the fall mirrored a similar 2.3 per cent monthly decline in August last year and was not necessarily a sign that the market was entering the second dip of a “double dip” scenario, in which house prices recover slightly from lows before falling again."
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
  • further cherry picking;

    However, the website also said that recent evidence of an upswing could hit the buffers if mortgage lenders did not put an end to the mortgage “ration”. Miles Shipside, director of Rightmove, said: “Future price and transaction growth is now controlled by the bottleneck of mortagage availability. This is unlikely to change for years to come.”

    Mr Shipside added that lenders had ushered in a “new era of caution and cherry-picking”, which had separated buyers into three types, according to the size of their deposits and credit-worthiness. These are “creditworthy” borrowers, who have big deposits and live in the South and in London; “marginals”, who want to borrow at 75 per cent and are squeaky clean; and “minimalists”, who are “effectively excluded”.

    Estate agents have reported that chains are breaking down as “approvals in principle” from mortgage lenders fail to result in formal offers. Agents are consequently advising sellers to accept offers from cash-rich buyers rather than bids from those who need mortgages, even if the latter has offered a higher amount.
  • brit1234brit1234 Forumite
    5.4K Posts
    Great news, its going to be a fun Aut-Winter.

    The lending is simply not there to buy at these overvalued prices and stores of money like bank of mum and dad are nearing exhaustion.

    Prices have to fall back to sustainable traditional levels. Don't listern to the estate agents ramping spin.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • themanbearpigthemanbearpig Forumite
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    Falls in asking prices are to be expected now the off-peak season has officially started and demand eases, which should eventually translate into falls in sale prices, but you never know with the current market. Prices could continue rising until the end of the year, as supply is still low, and the media is still on its ramping mission.
  • themanbearpigthemanbearpig Forumite
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    Also, when asking prices rise, headlines state:

    PRICES RISE BY 2%
    HOUSE PRICES RISE AGAIN
    HOUSE PRICES INCREASE BY 2.1%

    Failing to mention the prices are only 'asking'


    But when asking prices fall, they tone it down so it doesn't draw attention.

    Funny that.
  • I just noticed that when a bear posted a topic the Ubber Bull was on to it like a fresh piece of Salmon.

    When the Bull aka Hamish posts a link, we all groan and think about his portfolio that is going down the pan.

    Happy days.
  • EdaleEdale Forumite
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    Here are the figures for the previous 7 Augusts:

    2008 -2.3%
    2007 +0.6%
    2006 -1.6%
    2005 -0.2%
    2004 -2.0%
    2003 +0.0%
    2002 +0.8%

    It does seem that August is a month when sellers price more aggressively but the figure is as negative as last year when prices were sliding. You would have thought with all the positive news around sellers would have been a bit more optimistic.
  • brit1234brit1234 Forumite
    5.4K Posts
    Also, when asking prices rise, headlines state:

    PRICES RISE BY 2%
    HOUSE PRICES RISE AGAIN
    HOUSE PRICES INCREASE BY 2.1%

    Failing to mention the prices are only 'asking'


    But when asking prices fall, they tone it down so it doesn't draw attention.

    Funny that.

    Its a portential indication of seller sentiment. Asking prices rose a few months before the halifax.nationwide figures. Now should be the same going the other way.

    Prices are going down, they are simply overvalued
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
This discussion has been closed.
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