MSE News: Halifax: house prices up for third successive month

Former_MSE_Guy

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

"House prices rose by 1.6% during September, the third successive monthly increase, according to Halifax. The mortgage lender says typical values are still down by 7.4% ..."

Read the full story:
Halifax: house prices up for third successive month

ps - This thread began before the news story was published so we have merged the two discussions to prevent duplication. Thanks to Really2 for the original post.

Really2

As above, up over forecast.

Don't know what else to say really.

pawpurrs

Getting panicky here...........prices here are over peak, wondering whether to jump in or not? Come on crash where are you?

Heyman_2

Really2 wrote: »

As above, up over forecast.

Don't know what else to say really.

Timber?

Dan:_4

pawpurrs wrote: »

Getting panicky here...........prices here are over peak, wondering whether to jump in or not? Come on crash where are you?

The crash has been and gone pawpurrs.

sarah_elton

Bah! Sold up in Feb, been renting since, there's just nothing on the market that fits what we want. Severe lack of supply in my area. Same old dross every day on Rightmove - the odd things that do come to market fresh are selling fast.

Dan:_4

1.6% is massive for a typical September month.

Really2

What does that do to the old YOY graph, Is the Halifax still looking a couple of months behind the nationwide or is the north (halifax) catching back up with south (nationwide).
(I know they are not two months behind but it does look like the south started to bounce back a couple of months before the north.)

mitchaa

1.6% is a big big jump.

To think there are people out there still clutching at straws waiting for another crash aswell.

inspector_monkfish

09:00 06Oct09 RNS-REG-HBOS PLC Halifax House Price Index
http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20091006:RnsF2662A
.
RNS Number : 2662A

HBOS PLC

06 October 2009

Halifax House Price Index


National Index September2009



All Houses, All Buyers Index (1983=100)
Monthly Change 1.6% Annual Change -7.4%
Standardised Average Price (seasonally adjusted) £163,533


Commenting Martin Ellis, housing economist, said:

" House prices increased by 1.6% in September; the third consecutive monthly
increase and the fifth so far this year. House prices nationally have risen by
1.7% since the end of 2008.

The combination of increased demand and a low level of properties available for
sale has pushed up house prices in recent months. The marked improvement in
affordability due to the reduction in both property prices and interest rates
since mid 2007 has been a key factor in stimulating higher demand.

Continuing increases in unemployment and low earnings growth are likely to
constrain the rise in demand. There are also some signs that the improvement in
market conditions is encouraging more people to put their properties up for
sale. This development could loosen market conditions by alleviating the current
shortage of supply and curb the pace of house price growth evident in recent
months."


Key Points

* House prices rose by 1.6% in September. This
was the third consecutive monthly increase and the fifth so
far in 2009.

* House prices increased by 2.8% in Quarter 3. This was the
first quarterly rise for two years (2007 Quarter 3) and the
biggest since 2007 Quarter 1 (2.9%).

* The UK average house price in September was 1.7% (£2,672)
higher than at the end of 2008. Prices have risen by 5.9%
since reaching a trough in April 2009; an increase in the
average price of just over £9,000. The national average
price is currently at a similar level to that in mid 2005.

* House prices in September were 7.4% lower on an annual
basis. The annual rate of change (measured by the average
for the latest three months against the same period a year
earlier) has fallen markedly from a low of -17.7% in April.
It is at its lowest since June 2008 (-6.1%).

* The combination of increased demand and a low level of
properties available for sale has pushed up house prices in
recent months. The ratio of house sales to the stock of
unsold properties on surveyors' book rose for the eighth
successive month in August, indicating a tightening in
market conditions, according to the latest RICS monthly
survey.

* The proportion of disposable earnings devoted to mortgage
payments has fallen significantly over the past two years.
Nationally, typical mortgage payments for a new borrower
have fallen from a peak of 48% of average disposable
earnings in 2007 Quarter 3 to 30% in 2009 Quarter 3. This
key measure of affordability is at a more favourable level
than the average over the past 25 years (37%) and has been a
major factor pushing up housing demand.

* Housing market activity has picked up in recent months but
remains low on an historical basis. The number of house
sales in England and Wales has increased during 2009 with
the annual rate of decline improving from a low of -64% in
November 2008 to -17% in June 2009, according to the Land
Registry.Bank of England industry-wide figures show that the
number of mortgages approved to finance house purchase - a
leading indicator of completed house sales - has almost
doubled from 27,400 in November 2008 to 52,300 in August
2009, on a seasonally adjusted basis. Approvals in August
2009, however, were 51% lower than in August 2007 (106,770).

Dan:_4

Official Link

http://www.lloydsbankinggroup.com/media/pdfs/halifax/HousePriceIndexSept2009.pdf