House sellers' move to raise asking prices is 'illogical', says Rightmove

carolt

http://www.telegraph.co.uk/finance/economics/houseprices/8070267/House-sellers-move-to-raise-asking-prices-is-illogical-says-Rightmove.html


"
Property asking prices jumped "a seemingly illogical" 3pc in October despite a near-record number of houses for sale and increased difficulties in getting mortgages, says Rightmove.

The property website said the bullish pricing while traditionally a normal reaction to the start of the autumn selling season, was unsupported by market and economic fundamentals - except in a few areas of major housing shortages.

“Given the challenges of the current market, the behaviour of sellers in raising their average asking prices by over £7,000 takes some explaining," said Miles Shipside, director of Rightmove.

He warned the tactic is not likely to be "successful". :rotfl:

"Though it is a sign that many sellers are not experiencing high levels of financial stress but can’t afford to accept a lower price if they are to make their sums stack up for the next move,” he said.

Rightmove expects this week's Comprehensive Spending Review to have a negative effect on housing market sentiment and "consequently challenge further any perception of pricing power among sellers".

There also has been increasing signs that housebuyers are regaining the upper hand as gazundering returns to the market.

Gazundering is where a buyer demands a substantially lower price from the seller at the last moment before contracts are due to be exchanged."

1984ReturnsForReal_2

There also has been increasing signs that housebuyers are regaining the upper hand

They have had the upper hand for over 3 years

House sellers' move to raise asking prices is 'illogical', says Rightmove

Its a sign of desperation, mistiming & faith in the stupidity of the general public. Quite logical in fact.



Also coupled with the fact of higher volumes of houses in more affluent areas.


Simples.

HAMISH_MCTAVISH

it is a sign that many sellers are not experiencing high levels of financial stress but can’t afford to accept a lower price if they are to make their sums stack up for the next move

Why carol, you just posted analysis that confirms what the bulls have been saying for years.

Well done.

the_flying_pig

HAMISH_MCTAVISH wrote: »

Why carol, you just posted analysis that confirms what the bulls have been saying for years.

Well done.

what, people can't 'afford' to sell cheap so won't? what a load of rubbish. the same could be said of the period following any real estate bubble including the Irish and Northern Irish ones. prices still fell plenty.

chucky

calm down people.... it's only an index on property asking prices

a 'positive' thread comes out and people feel the need to try and throw cold water on the fact that the Rightmove Property Index has risen.

it is what it is - end of

googler

Without a clear indication of the distribution of the selling prices, there's nothing to support the statement that sellers are 'raising their prices'

If nobody at the low end is coming to market, and the houses listed are at higher price points, the average rises.

Unless RM can break this month's numbers down into price bands and compare with previous.....

the_flying_pig

Doctor_Gloom wrote: »

Very true Carol. Frankly vendors who put their asking prices up in a plunging market are buffoons. It just means their houses will rot on the market for even longer. More fool them.

blame the agents. vendors don't dream up initial asking prices themselves, they set them based on the advice of estate agents.

Blacklight

Cue another three weeks of Carol posting replies to herself to bump the thread onto the first page in order that every internet user in the UK will see it and single handedly change the nations public sentiment so her and her millionaire husband can afford a mansion and a yacht.

System

HAMISH_MCTAVISH wrote: »

Why carol, you just posted analysis that confirms what the bulls have been saying for years.

Well done.

It certainly applies to me, I currently have around 10k equity in my place, if prices fall then I need to save another 10k towards my next place, which is fine, but I obviously wouldn't sell if it will leave me with nothing to buy. If I was going to list my place I'd list it at the price I need to enable me to move and hope someone buys it, if they don't no biggy, I'll just keep saving.

I suspect this is what's happening in the majority of cases as there's not much distressed selling going on.

Edit: I suppose this makes me a "deluded vendor HPI junkie" or some other moronic thinly velied attack.

1984ReturnsForReal_2

Blacklight wrote: »

Cue another three weeks of Carol posting replies to herself to bump the thread onto the first page in order that every internet user in the UK will see it and single handedly change the nations public sentiment so her and her millionaire husband can afford a mansion and a yacht.

Lets be fair, it is probably going to be replies to her sockies

Degenerate

Joeskeppi wrote: »

Edit: I suppose this makes me a "deluded vendor HPI junkie" or some other moronic thinly velied attack.

How dare you refuse to sell to a bear at the price they want to pay.