House prices fell 1.20% in June

mystic_trev

According to Halifax.

"The annual rate of house price inflation, however, is expected to ease, partly because the corresponding figures last year were strong. Pressure on householders' finances from utility bill and council tax rises, combined with speculation of higher interest rates, are also likely to constrain demand."

http://www.hbosplc.com/economy/includes/HousePriceIndexJune2006.doc

Nothing to get too worried about yet - unless it becomes the begining of a trend.What do you think BRUNO? Perhaps the STR's got it right !!!!!

lynzpower

As weve been saying for a while

"House prices fell by 1.2% in June. Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006, ensuring that the market remains in good health. The annual rate of house price inflation, however, is expected to ease, partly because the corresponding figures last year were strong. Pressure on householders' finances from utility bill and council tax rises, combined with speculation of higher interest rates, are also likely to constrain demand."

meanmachine_2

Funny how they released that one early, just as the MPC are meeting.

Bunch of bleeps.

I hope, true to form, the Express now report this as a HOUSE PRICES SLUMPING on their front page.

The idiots.

I'm disappointed. I was hoping things would keep steaming upward, until prices fell off a cliff.

At this rate the soft landing is still a possibility. bah!

Jim_B_3

Expect tomorrow's Express leader to be about Diana.

lowis

...and how immigrants are to blame for her death AND the fall in house prices.

AndrewSmith

lowis wrote:

...and how immigrants are to blame for her death AND the fall in house prices.

And for the fact it's now raining. Don't forget global warming, they haven't pinned that on anyone specifically yet either. Perhaps it's all the cigars that Robert Maxwell is smoking on his luxury yacht in the mediterranean while he sips Pimms with Elvis.

sikejsudjek

"Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006," Martin Ellis, Halifax chief economist, said."


That comment is just spin. Unemployment is on the up, interest rates are going to be on the up, and housing demand is down. I wonder where house prices are heading ? Just watch the Buy To Let's bail out when the penny drops that their pension investment is actually a debt burden ! I did ! :-)

Gorgeous_George

***Scottish accent ON***

Aye, we're all doomed

***Scottish accent OFF***

If interest rates rise and remain high for a prolonged period of time, the housing market will take a serious fall whatever optimistic words are spoken by the professionals.

Obviously, higher interest rates will impact FTBs. Additionally, current home owners on fixed term mortgages would be hit by massive increases in repayments when the fixed terms end. All this leads to very high numbers of repossessions - fuelling adramatic drop in prices.

Personally, I'm happy with my BTL and wouldn't consideer selling it. However, if money was my driver, I'd probably sell my home now and look to buying in 3 to 4 years time. But my home is my home and I don't want to rent.

GG

Gorgeous_George

Jim_B wrote:

Expect tomorrow's Express leader to be about Diana.

I hope I'm around when it is finally admitted that Diana was murdered... and that the yanks didn't land on the moon in 1969.



GG

F_T_Buyer

How hard is it to afford a house?

The BBC also have this report: http://news.bbc.co.uk/1/hi/business/5145090.stm


Interesting, although they use some spin figures. They seem to have redefined a First Time Buyer:

"The Nationwide building society recently estimated that 20% of apparent first timers in 2005 were older people returning to the property market after a spell in rented accommodation."

So someone who previously owned a house is a First Time Buyer??? That's logicial..!

"Now [First Time Buyers] make up just 38% of all buyers and their proportion in recent years has at times fallen as low 27%."

Really? NAEA say it's less than 10%: http://www.naea.co.uk/uploaded_photos/news/Aprilhousingmarketsurveyfinal.doc

The 38% refers to those who haven't owed a house in the last 6 months.

~~~

The whole point of identifying First Time Buyers is it measures new money going into the property market, i.e. exlcuding those who have built up equity on previous property. It is a well known fact that without FTBs the market would eventually collapse, hence the reason why those with a vested interest cloud the issue by redefining a FTB.

In Recent years FTBs have been replaced by BTLers.

lowis

i am getting a survey done on monday and if the surveyor's report is good then i am going ahead...but i'm getting nervous now. let's hope fixing for 3 years is enough...i'm not too worried about value as i am getting it for below the market value and i intend to keep this flat long term so i am bound to see it's value move either way. it's just those pesky intrerest rates that make me nervous....