June Home Sales Rise by 21%

HAMISH_MCTAVISH

http://www.bbc.co.uk...siness-10710237

The number of homes sold in the UK in June rose by 21% from May to 86,000, HM Revenue & Customs has said.

The sales figures were the highest this year and were up 15% on the same month last year.

It means sales so far this year have been 21% higher than in the first six months of 2009.

:beer:


..........

chucky

two things with that Hamish

1. 86,000 vs 50,000/55,000 odd mortgage approvals is a lot of cash buyers to me. is that a normal ratio?

2. more purchases for house prices that are averaging the same price before must mean that there are more transactions at the lower end - so more FTB's are buying... or is it investors...

Strings

This wont be good news for the HPC.co.uk'ers

Graham_Devon

The following paragraphs..........

On Tuesday, the Bank of England warned the tight supply of mortgages might become worse in the coming months which could stop sales growing much faster.

The Royal Institution of Chartered Surveyors (Rics) said the figures meant house sales were still subdued.

"Sales are still running well below the levels preceding the onset of the credit crunch, partly because of a shortage of mortgage finance as well as, until recently, the lack of stock on the market," a spokesman said.

nearlynew

Excellent news.


Falling prices have enabled more people to buy.

Strings

Graham_Devon wrote: »

The following paragraphs..........

We have heard this same mantra for sometime now about mortgage funding.

Plus the current transaction levels might be the new norm, the last thing we want is pre credit crunch levels

HAMISH_MCTAVISH

chucky wrote: »

so more FTB's are buying... or is it investors...

I'd guess investors. Fits with the increase in cash buyers.

Rising rents are pushing up yields and drawing in investment capital.

A situation likely to accellerate as the current rental shortage is the worst on record.

Strings

HAMISH_MCTAVISH wrote: »

I'd guess investors. Fits with the increase in cash buyers.

Rising rents are pushing up yields and drawing in investment capital.

A situation likely to accellerate as the current rental shortage is the worst on record.

You raise and interesting point really, we tried to sell our place a few months ago but had no offers what’s so ever. It was over priced but we thought we’d attempt to sell anyway.
Cut a long story short, we have no remortgaged and our mortgage payments have drop by £300 a month to £600.
In Sept we have tenants coming in and the rent PCM is £1175. It is perverse because if they bought it they could pay significant less than renting, but as they don’t have the deposit they are stuck.

nearlynew

Strings wrote: »

You raise and interesting point really, we tried to sell our place a few months ago but had no offers what’s so ever. It was over priced but we thought we’d attempt to sell anyway.
Cut a long story short, we have no remortgaged and our mortgage payments have drop by £300 a month to £600.
In Sept we have tenants coming in and the rent PCM is £1175. It is perverse because if they bought it they could pay significant less than renting, but as they don’t have the deposit they are stuck.

And if you were in your tenants position, would have the deposit to buy your overpriced house?

hoggums

All of this will unravel when interest rates rise. The market is still being artificially propped up by the lowest ever interest rates, yet prices are dropping off already. Give another year or two years and the prospect of rising interest payments will cause a flood of properties to the market.

In the meantime I see a stalemate between the bulls and bears.

Mexas

Sales are increasing yet prices are staying stagnant. What does this mean?