House price rises "not sustainable"

geoffky

The recent rise in property values isn’t sustainable, and experts warn homeowners can expect to see prices fall again before too long.
Over the past few months, several house price indices have shown an increase in property values, leading to renewed optimism that the worst of the crash is now over. Nationwide reports that house prices have risen for the fourth consecutive month, with a 1.6% uplift in values during August.
Nationwide's key findings:
* The price of a typical house rose by 1.6% in August
* Average house prices increased by 3.3% between June and August – the highest rise since February 2007
* The first eight months of 2009 have seen prices rise by 3.2%
* The typical property is now worth £160,224 – down 2.7% from August last year and 14.4% from the peak in October 2007
Despite house prices remaining down on an annual basis, the slight rises have bolstered confidence. In August, the Royal Institute of Chartered Surveyors predicted house values would end the year higher than they started. And a survey from property portal Rightmove found that three quarters of homeowners think the housing market has bottomed.
Meanwhile, the British Bankers’ Association (BBA) recently reported that mortgage approvals have increased by 77% since July last year, a sudden buoyancy that could last into the autumn.
However, despite the seemingly massive jump in approvals, the amount of lending remains historically low – and experts warn the slight recovery in both lending and house prices cannot be sustained

and more.....

http://www.moneywise.co.uk/news-views/2009/08/26/house-price-rises-not-sustainable

Graham_Devon

Of course it's not sustainable. No one on this forum or anywhere else I have seen has been able to explain how it's currently sustainable.

Plenty can tell you why it's not.

Just seen cheering it on and people saying it's stupid.

Middle ground don't appear to exist.

LittleMissAspie

I had a dream last night that the Halifax August figure was -0.1%

StevieJ

LittleMissAspie wrote: »

I had a dream last night that the Halifax August figure was -0.1%

I think you should take a break :eek:

Dan:_4

geoffky wrote: »

The recent rise in property values isn’t sustainable, and experts warn homeowners can expect to see prices fall again before too long.
Over the past few months, several house price indices have shown an increase in property values, leading to renewed optimism that the worst of the crash is now over. Nationwide reports that house prices have risen for the fourth consecutive month, with a 1.6% uplift in values during August.
Nationwide's key findings:
* The price of a typical house rose by 1.6% in August
* Average house prices increased by 3.3% between June and August – the highest rise since February 2007
* The first eight months of 2009 have seen prices rise by 3.2%
* The typical property is now worth £160,224 – down 2.7% from August last year and 14.4% from the peak in October 2007
Despite house prices remaining down on an annual basis, the slight rises have bolstered confidence. In August, the Royal Institute of Chartered Surveyors predicted house values would end the year higher than they started. And a survey from property portal Rightmove found that three quarters of homeowners think the housing market has bottomed.
Meanwhile, the British Bankers’ Association (BBA) recently reported that mortgage approvals have increased by 77% since July last year, a sudden buoyancy that could last into the autumn.
However, despite the seemingly massive jump in approvals, the amount of lending remains historically low – and experts warn the slight recovery in both lending and house prices cannot be sustained

and more.....

http://www.moneywise.co.uk/news-views/2009/08/26/house-price-rises-not-sustainable

No need to panic. No one, not even the most bullish, believe house prices will boom again.

sjaypink

LittleMissAspie wrote: »

I had a dream last night that the Halifax August figure was -0.1%

i had a dream last night about this bl00dy board! definately a sign...

i keep getting swayed either way, but in my heart- should that be head? - i can see years of further small falls tbh

Graham_Devon

We have what appears to be a double whammy at the moment. House prices rising, lending more restrictive.

I have just seen a house which on Friday reduced by £28,000. Ayear ago I would have definately gone for it, and could have laid down a 10% deposit and got on with it. Now, I can't get that house, as I need double the deposit I have and more, and I cant just magic up that money from no where, as it appears some assume others are doing.

Rather annoying really. Finally prices come within some sort of grasp (for me personally) and the rug is pulled from under my feet by restrictive lending requirements.

For the moment, I'm stuck with the deposit side of things if I want to get out of SO. However, it seems a case of deja vu has appeared again, and it seems I can't top up my deposit fund quite as quick as house prices appear to be rising.

This time round however, aswell as not being able to save as quick as house prices rise, and live at the same time, the deposit thresholds have been doubled.

I'm actually worse off as a FTB (I would class myself as that, as having an SO kinda makes me an inbetweener) now, than I was just a year ago with higher house prices, in terms of ability to get into that house.

Dan:_4

Graham_Devon wrote: »

We have what appears to be a double whammy at the moment. House prices rising, lending more restrictive.

I have just seen a house which on Friday reduced by £28,000. Ayear ago I would have definately gone for it, and could have laid down a 10% deposit and got on with it. Now, I can't get that house, as I need double the deposit I have and more, and I cant just magic up that money from no where, as it appears some assume others are doing.

You can get a 10% LTV mortgage, easier then this time last year.

I suggest you pop over to the mortgage board where good advice can be found regarding these products.

geoffky

http://fistfulofeuros.net/afoe/economics-country-briefings/twenty-percent-of-spanish-mortgages-now-considered-to-be-high-risk/

Twenty Percent of Spanish Mortgages Now Considered To Be High Risk

sorry i was testing

sjaypink

Dan: wrote: »

You can get a 10% LTV mortgage, easier then this time last year.

I suggest you pop over to the mortgage board where good advice can be found regarding these products.

really? i put some figures into a comparison site (money supermaket i think) a couple of weeks ago, and it come up with no available mortgage for 10% ? only a couple for 15%

perhaps it is to do with the wage multiple?

Graham_Devon

Dan: wrote: »

You can get a 10% LTV mortgage, easier then this time last year.

I suggest you pop over to the mortgage board where good advice can be found regarding these products.

Yer, and you pay the price. I'm not that daft. Just the arrangement fee would pay for my entire food shopping bill for a year.

I know the property experts advice is to buy now, my response to that is: