MSE News: Halifax: house price growth decelerates

Former_MSE_Natasha

This is the discussion thread for the following MSE News Story:

"House prices rose for the seventh month in a row during January but the rate at which they are increasing slowed, figures show today..."

Read the full story:
Halifax: house price growth decelerates

These threads have been merged to avoid duplication. Thanks to Really2 for the original post.

Really2

As above.

Let the arguments begin.

Rinoa

Linky

http://www.lloydsbankinggroup.com/media/word/HPI/2010/HousePriceIndexJan2010.doc

:j

IveSeenTheLight

Here are the key facts

Key facts


· House prices increased by 0.6% in January. Prices rose for the seventh consecutive month, but January's rise was the lowest during this period and was significantly below the 1.1% average over the previous six months.

· Prices have risen by 9.9% since reaching a low in April 2009; an increase in the average price of £15,287 over this period. This follows a decline of 23% between August 2007 and April 2009. The average house price is now £169,777.

· House prices in January were 3.6% higher on an annual basis. This is the largest increase in the annual rate of change - measured by the average for the latest three months against the same period a year earlier – since February 2008. The comparable rate a year ago was –17.2%.

HAMISH_MCTAVISH

Nothing much left to argue about.

The House Price Crash is over. The bottom for the cycle was Feb 09.

Sure, prices may rise a little, fall a little, stagnate a little, bump along the bottom for a while, etc.... But that is of little consequence to most people.

The bigger factor by far now, in terms of costs, will be interest rates.

But as it's unikely they'll be rising for quite some time, there's little to argue about there either.

The whole subject has got a bit boring really.

Rinoa

Meanwhile, over on HPC, there is no topic covering this.

40 mins since the Halifax data was released.

Perhaps nobody want's to be the first to post for fear of being banned. :rotfl:

Edit to add: now been posted at 9.47 by Piece of Paper ~ who apologised in the title for actually posting it. Bit of irony there from PoP.

Batchy

You may as-well argue with yourself in a mirror, personally i'm fed up of hearing it.

Market, is poor, estate agents still struggle to make ends meet, buyers who push up the price are kidding themselves, and those with PREMIUM properties will not have a trouble selling regardless of the market conditions, its all about Quality, not quantity, I personally disagree with supply and demand its very Niche driven, a road might have 3 houses for sale, but if its not the one on the end of the road which is detached then it still doesnt fit the bill, houses in the UK are so diverse, there is something for everyone, for 95% of most buyers, the other 5% will wait wait wait for that perfect one.

If you think the trouble is over, ask the people who still haven't sold after over 18 months on the market, ie, those who refused to reduce their prices.

Ask them why they havent sold yet, when average selling prices have increased.

I could quite simple answer that for them... your asking too much in the current market, stats might suggest its getting better, but the only way it will be, is when liquidity returns, and stability is forecast. The road ahead is bumpy, very bumpy.

We have already been advised, LIQUIDITY WILL NEVER RETURN to the levels seen since wholesale mortgage markets were obliterated, and people who got so badly burnt will never return to invest in it.

Simples... :-)

IveSeenTheLight

IveSeenTheLight wrote: »

Here are the key facts

Key facts


· House prices increased by 0.6% in January. Prices rose for the seventh consecutive month, but January's rise was the lowest during this period and was significantly below the 1.1% average over the previous six months.

· Prices have risen by 9.9% since reaching a low in April 2009; an increase in the average price of £15,287 over this period. This follows a decline of 23% between August 2007 and April 2009. The average house price is now £169,777.

· House prices in January were 3.6% higher on an annual basis. This is the largest increase in the annual rate of change - measured by the average for the latest three months against the same period a year earlier – since February 2008. The comparable rate a year ago was –17.2%.

oops, seems like I missed some more key facts

· Housing market activity continues to pick up albeit from a low base. House sales in England and Wales in October were 34% higher than a year earlier, according to the latest Land Registry figures. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase – a leading indicator of completed house sales – in the final three months of 2009 was significantly up on the number in the same period a year earlier (176,517 against 91,221). This was despite a marginal monthly fall (-1.7%) in December; the first decline since November 2008. Approvals were still 22% lower than in December 2007.

· Low mortgage rates have reduced the burden of servicing mortgage debt. Nationally, typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in 2007 Quarter 3 to 32% in 2009 Quarter 4.

· Low supply of properties for sale has been another factor pushing up house prices. There are, however, some signs that the improvement in market conditions since last spring is leading more homeowners to try to sell their property. Instructions to sell increased for the seventh successive month in December, helping to increase the stock of properties available for sale. (Source: RICS monthly survey, December 2009.)

· Separate research recently released by Halifax demonstrated that the 'Noughties' were a significant period for the UK housing market. Despite a fall of more than one-fifth between mid 2007 and mid 2009, house prices increased by more in real (i.e. inflation adjusted) terms than in any other decade over the last 50 years. House prices increased by 105% during the 2000s, taking the UK average house price from £81,596 in 1999 quarter 4 to £167,020 in 2009 quarter 4.

· Redruth recorded the biggest price rise during the last decade (207%). Three of the four towns that delivered the largest gains are in Cornwall; Redruth, Penzance and Helston. All ten towns recording the fastest house price growth in the 2000s are on, or close to, the coast. The majority of towns that experienced the strongest price growth began the decade with lower than average property prices, which provided the platform for bigger price gains.

HAMISH_MCTAVISH

Rinoa wrote: »

Perhaps nobody want's to be the first to post for fear of being banned.

:rotfl: :rotfl: :rotfl: :rotfl:


Priceless.

ruggedtoast

More astute debate from the forum geniuses.

Really2

Batchy wrote: »

Market, is poor, estate agents still struggle to make ends meet,

Any proof on that? it was very difficult for them in 08 but I know an EA and he said 09 was good. Lots of sales less competition now as some closed 08.
You are kidding yourself if you think it is only high end stuff selling, the market in terms of property's sold is improving and has done for a year now.