House prices in the South East fall significantly

Henry_P_Chester

Interesting for those who say prices in the South East will never fall.

Published 10 August 2010
More surveyors reported a fall rather than a rise in South East house prices as supply continues to outstrip demand and more properties come on to the market.
This is according to the latest RICS UK Housing Market Survey.
In July 15% more surveyors reported a fall rather than a rise in house prices, a steep fall of 30% from June, when 15% more surveyors were optimistic that prices would rise.
Demand for property in the South East, measured by the net balance of new buyer enquiries, fell slightly for the second month in a row, from negative 22 to negative 24. Difficulty in securing mortgages and increased uncertainty about the prospects for the economy may have contributed to caution from potential homebuyers though the excess of supply over demand is central to the market.
The number of new vendor instructions in the South East increased markedly across the region, with 35% of surveyors reporting a rise rather than a fall in the number of properties coming onto their books, up from 21% in June. Since the abolition of HIPS in May this year and the changes to Capital Gains Tax, more homeowners seem keen to test the property market.
The consequence is that the average number of properties on surveyors' books rose to an average of 52, up from 43 in June. Average sales per surveyor increased marginally to 18, up from 17, reflecting the continuing lack of demand in the market and producing a sales to stock ration - a useful indicator of market slack - of 34%, only slightly down from 38 in June.
Newly agreed sales increased but still remain in negative territory with 8% of surveyors reporting a fall than a rise in the number of transactions, up from a negative 38% in June, reflecting a more optimistic market earlier in the year.
Looking forward, expectations for house price increases have also turned sharply negative, with 30% more surveyors expecting prices to fall over the coming months, a significant change from June when 3% of surveyors expected prices to rise. Despite this, sales expectations remain optimistic, with 25% of surveyors expecting sales to rise rather than fall, albeit slightly less than the previous month's reading of 27%

http://www.rics.org/site/scripts/press_article.aspx?pressreleaseID=274

Blacklight

Thread No.6 on the same report *yawn*

Henry_P_Chester

Blacklight wrote: »

Thread No.6 on the same report *yawn*

Don't reply if your not interested...

chucky

i'm interested...

House prices in the South East fall significantly

how much is significantly - the article didn't mention how much they'd fallen and was curious where you'd made that number up from...

Dirk_Rambo

Henry_P_Chester wrote: »

Interesting for those who say prices in the South East will never fall.




http://www.rics.org/site/scripts/press_article.aspx?pressreleaseID=274

excelent article henry. theyre certainly plungeing round where i live

doire_2

Blacklight wrote: »

Thread No.6 on the same report *yawn*

Better than bulls bumping threads from months or years ago

Heyman_2

Henry_P_Chester wrote: »

Interesting for those who say prices in the South East will never fall.

Who has ever said that then? Namecheck some usernames for me, I'm genuinely interested?

mystic_trev

Henry_P_Chester wrote: »

Interesting for those who say prices in the South East will never fall.

I don't think anyone would say that? However I note that certain areas in the SE seem to be defying gravity. Anywhere in the Tunbridge Wells / Sevenoaks area seem to go quickly. I've a friend who's just sold (what can only be described) as an overpriced hovel, for the full asking price to the first viewer. I'm also amazed, that the first Investment property I bought in 1996 for £37,000 is valued at £150,000 - the price one's just been sold at!

On the flip side, anyone selling in certain areas of East Sussex or North Kent might have to reduce their prices dramatically!

dopester

mystic_trev wrote: »

I'm also amazed, that the first Investment property I bought in 1996 for £37,000 is valued at £150,000 - the price one's just been sold at!

On the flip side, anyone selling in certain areas of East Sussex or North Kent might have to reduce their prices dramatically!

Value schmalue.

A few months ago Mystic Vern in East Sussex or North Kent was probably amazed his Investment property bought in 1996 for £27K now had a value of £120K.

He's now a bit narked it's been valued at £100K. According to you if active sellers want to in his area they will "have to reduce their prices dramatically", further putting his property under the forces of downside value change.

Maybe the same won't happen in your particular area because it is extra special. Or maybe in 6 months we'll be seeing signs of it happening there as well. Value isn't money and values are very changeable, as already proven to you by the "so amazed" rise since 1996.

Dirk_Rambo

doire wrote: »

Better than bulls bumping threads from months or years ago

its hard to argue with that sentement doire

Sibley

I love it when the bears get a glimmer of hope.
Only takes a headline or two of positive news to send them clambering back into the pit of despair.

Come on Sky news, the Express and Halifax data.

Lets get them back on the Prozac.:beer:

That was so funny last time figures rose. They were folded up like a Brighton deckchair.

The newspapers must have run out of steam on the houses are going up story. Change it to they are crashing for a week or so. Keep the 30p's coming in.:rotfl:

To be honest it's all getting a bit boring now.

One month house prices supposedly rise and the bulls give it out.

Next month they go down and it's the bears turn.

Houses where I live are selling for more than 2007 prices but then I'm in that golden Sevenoaks/Tunbridge Wells area everyone keeps going on about.

One thing for sure. With interest rates this low I'm happy to be a homeowner. :rotfl:

Renting is dead money and I still say you can't start harping on about prices crashing until you are sitting in your lovely cut price house.

Not a single bear has bought a bargain and they won't because decent places don't go cheap. At the end of the day you all know that as well. Show me a 50% discounted house in Loose Valley Kent or somewhere I want to live.:rotfl: