Rightmove Up 0.6% September 2009

Thrugelmir

chucky wrote: »

and a reduced supply which increases house prices :cool:

Which is the case now. Though this will hit a ceiling , when downsizers and sellers out of the market match demand.

When I read the mortgage /house moving boards. I do wonder if there is another an element coming into play. Which isn't economic. And thats the perception of value for money. People viewing 50 houses with their £350k budget and expecting far more . A palace maybe... :rolleyes:

IveSeenTheLight

Thrugelmir wrote: »

Which is the case now. Though this will hit a ceiling , when downsizers and sellers out of the market match demand.

I think at the moment there is more supply than demand.
Strange then that house prices have risen for the last 6 months.

Well not really, as although there are more supply than demand, the demand want specifics that they do not see in the market.

I think we are teetering on the line of supply matching demand in the broad sense, hence we saw prices rise for the last 6 months and possibly will see them fall for the next 6 months over winter.

It's called stagnation.

The thing is, I can see this lasting another year, maybe two and then the question will be if we are far enough through the economic factors that will allow the supply and demand to rise?

Thrugelmir

IveSeenTheLight wrote: »

I think at the moment there is more supply than demand.
Strange then that house prices have risen for the last 6 months.

Well not really, as although there are more supply than demand, the demand want specifics that they do not see in the market.

I think we are teetering on the line of supply matching demand in the broad sense, hence we saw prices rise for the last 6 months and possibly will see them fall for the next 6 months over winter.

It's called stagnation.

The thing is, I can see this lasting another year, maybe two and then the question will be if we are far enough through the economic factors that will allow the supply and demand to rise?

A couple of years is a very short time frame. We've yet to tackle issues which could impact markets in lots of different ways.

IveSeenTheLight

Thrugelmir wrote: »

A couple of years is a very short time frame. We've yet to tackle issues which could impact markets in lots of different ways.

True, it can be seen as a short time, yet also a lot can be done and the picture could be a lot clearer by then.

There is no doubt the markets are cautious at the moment for a number of reasons.
Will there still be the same caution in the couple of years time? Only that time will tell

Thrugelmir

IveSeenTheLight wrote: »

True, it can be seen as a short time, yet also a lot can be done and the picture could be a lot clearer by then.

There is no doubt the markets are cautious at the moment for a number of reasons.
Will there still be the same caution in the couple of years time? Only that time will tell

Most likely yes. Banks currently need to deleverage by reducing total lending.

In 2012/2013 their will be new regulatory capital requirements for the banks to adhere to. This will mean they have to hold higher capital reserves to support their lending. Obvious effect will be to contract lending even further.

Even an immediate change to a savings as opposed to a borrowing culture can readdress in the balance in such a short space of time.

edgex

these are 'asking prices' remember
how many of those properties actually end up selling, & at what % of asking price?
how many are withdrawn from the market for other reasons


also, rightmove charge EA's to post properties on the site, so EA's are not putting up all of their properties, they are only putting up the ones that they think will cover the costs & allow them to make a profit.

some stuff is going straight to the auctions, & not selling.



as for unemployment, the full affects havnt filtered through yet
there will be further cuts to the public spending, & within private business
whether they employ less people, or just have no pay rises for the next few years, they both equal the same thing - less money