U.K. House Prices Drop the Most in 16 Months,

doire_2

According to Hometrack

U.K. home values dropped in August by the most in 16 months as the housing market endured a “modest re-pricing” that is likely to last as long as a year, Hometrack Ltd. said.
The average cost of a home fell 0.3 percent from the previous month to 158,200 pounds ($246,000), the London-based property researcher said in an e-mailed statement today. That was the biggest drop since April 2009. Hometrack’s index is based on a survey of 5,100 real-estate agents and surveyors.

The report adds to mounting evidence that the housing market is weakening, and economists predict data tomorrow may show that banks granted the fewest mortgages in more than a year last month. Britain’s economy “remains fragile” and officials may need to expand their emergency stimulus to aid the recovery, Bank of England Deputy Governor Charles Bean said on Aug. 28.
“The housing market is in the process of a modest re- pricing that is likely to run for the next six to 12 months,” Richard Donnell, Hometrack’s director of research, said in the statement. There is also “growing weakness on the demand side, a weakness which represents more than just a seasonal blip.”
From a year earlier, prices rose 1.5 percent, the least in five months, Hometrack said. Demand for homes, measured by the change in new buyers registering with real-estate agents, fell for a second month, dropping by 2.2 percent.

The supply of homes “has improved markedly and this has reduced the support for house prices provided by the scarcity of housing for sale over 2009 and early 2010,” Donnell said. Prices fell in every region apart from Wales, where they were unchanged, the report showed.
“The deleveraging process is incomplete, the recovery remains fragile and a considerable margin of spare capacity is yet to be worked off,” Bean said at a conference in Jackson Hole, Wyoming. “Further policy action may yet be necessary.”
U.K. banks probably approved 46,500 mortgages in July, the least in 14 months, according to the median forecast of 19 economists in a Bloomberg News survey. The Bank of England will release that data tomorrow.

Generali

The methodology:

The average price data is based on the contributor's opinion on the achievable selling price for each of four standard property types in every postcode district. The price is for a given date each month and assuming a willing seller and a reasonable marketing period while taking into account current market conditions and recent transactions. The price data that is collected goes through a verification process and is then weighted up from postcode district level using Census housing stock numbers to derive an 'overall weighted average price'. The methodology means that cash buyers are implicitly included in the results. The monthly data is not seasonally adjusted.

Basically it's a survey of Estate Agents' opinions.

doire_2

Generali wrote: »

The methodology:



Basically it's a survey of Estate Agents' opinions.

And as they are involved in selling houses they are the people to ask

Dirk_Rambo

Generali wrote: »

The methodology:



Basically it's a survey of Estate Agents' opinions.

thats very intresting. because if estate agents with all there lies and self intrest admit prices are falling then in realty they must be really tanking

Cleaver

Generali wrote: »

The methodology:

Basically it's a survey of Estate Agents' opinions.

In that case did the report also suggest that a wide-knotted white tie and a black shirt combo was a good idea?

Doctor_Gloom

Where are you Hamish? Have you choked on your porridge?

HAMISH_MCTAVISH

0.3%

I'm underwhelmed.

I spend more than that on eating out each month. Why on earth would it concern me about house prices?

I mean, if you had 10 months of falls like that, it might even catch up with the amount most pre crash buyers are saving over renters at the moment....

Doctor_Gloom

Dirk_Rambo wrote: »

thats very intresting. because if estate agents with all there lies and self intrest admit prices are falling then in realty they must be really tanking

Yes, if estate agents are saying house prices fell 0.3% then you could be fairly sure that in truth they fell more like 1.5 or 2%, such is the level of their vested interest and downright deceit.

doire_2

:beer:

HAMISH_MCTAVISH wrote: »

0.3%

I'm underwhelmed.

I spend more than that on eating out each month. Why on earth would it concern me about house prices?

OK so when the Nationwide, Halifax etc report rise of 0.1, 0.2 or 0.3% etc you wont be on here with your clapping smiley?

Doubt it!

StevieJ

Dirk_Rambo wrote: »

thats very intresting. because if estate agents with all there lies and self intrest admit prices are falling then in realty they must be really tanking

Wrong! estate agents are about selling houses not keeping prices high, I think getting vendors to lower price expectations might help that along don't you think? So in this case their VI is in falling prices.

Sibley

I cant come to terms with the bears. How on earth could homeowners possibly feel worried at the moment? With interest rates so low it's a lovely feeling owning property.