House prices fall 2.2 percent in January - Hometrack

smeagold

The monthly survey of more than 5,000 estate agents and surveyors showed prices slipped 0.5 percent on the month, slightly more than December's 0.4 percent decline. That took the average house price down to 153,600 pounds.

Hometrack said the sluggish start to 2011 was likely to continue, given the uncertainty over the economic recovery and worries about the effect of government cuts.

"Prices are set, in the short term, to remain under downward pressure," Richard Donnell, director of research at Hometrack, said in a statement. "Household budgets being squeezed by increased taxation will be stretched further if concerns over rising inflation translate into higher interest rates."

Over the last six months, Hometrack's survey has recorded a 26 percent fall in demand, with a drop of 9.5 percent in January alone, suggesting the housing market faces more fundamental problems than the usual post-Christmas slowdown.

There was a 9.5 percent fall in the number of new buyers registering with agents in January, compared to a 4.8 percent fall in December and a drop of 2.7 percent in January 2010, the survey said.

http://uk.reuters.com/article/idUKTRE70Q00620110127

Good:)

smamst

If that has come from Estate Agents you darn well know it's carnage out there right now.

Timber.......

C_Mababejive

Are we to have a new thread start every time house prices are mooted to be going up or down a fraction of a percent?

smamst

C_Mababejive wrote: »

Are we to have a new thread start every time house prices are mooted to be going up or down a fraction of a percent?

Yes, you've not been in this forum for long have you?

smeagold

C_Mababejive wrote: »

Are we to have a new thread start every time house prices are mooted to be going up or down a fraction of a percent?

I'd assume your of the house price bull persuasion, no?

nicko33

That's a lot of friendly local (highly qualified and professional) estate agents saying prices are going down.
So it must be true

The_Fox_3

C_Mababejive wrote: »

Are we to have a new thread start every time house prices are mooted to be going up or down a fraction of a percent?

What you call a fraction(and i am expecting 0.0% to -3.0% monthy falls throughout most of this year) is like me saving anything up to £9000 per month, i think we are talking big money here.

Going on this hometrack number i have as good as saved £1500, did you save £1500 this month:)

doire_2

smeagold wrote: »

The monthly survey of more than 5,000 estate agents and surveyors showed prices slipped 0.5 percent on the month, slightly more than December's 0.4 percent decline. That took the average house price down to 153,600 pounds.

Hometrack said the sluggish start to 2011 was likely to continue, given the uncertainty over the economic recovery and worries about the effect of government cuts.

"Prices are set, in the short term, to remain under downward pressure," Richard Donnell, director of research at Hometrack, said in a statement. "Household budgets being squeezed by increased taxation will be stretched further if concerns over rising inflation translate into higher interest rates."

Over the last six months, Hometrack's survey has recorded a 26 percent fall in demand, with a drop of 9.5 percent in January alone, suggesting the housing market faces more fundamental problems than the usual post-Christmas slowdown.

There was a 9.5 percent fall in the number of new buyers registering with agents in January, compared to a 4.8 percent fall in December and a drop of 2.7 percent in January 2010, the survey said.

http://uk.reuters.com/article/idUKTRE70Q00620110127

Good:)

That makes a mockery of one of sibleys monikers doesn't it

mystic_trev

doire wrote: »

That makes a mockery of one of sibleys monikers doesn't it

I believe Sibley's a great Express reader, so I'll give him this link

http://www.express.co.uk/posts/view/225556/House-prices-fall-for-seventh-month

as know how much he likes to post on the comments section :rotfl:

Llubrevlis

C_Mababejive wrote: »

Are we to have a new thread start every time house prices are mooted to be going up or down a fraction of a percent?

2.2% in a month is significant. This is not even considering inflation.

Even if there was no fall house prices are falling in relation to inflation.

Generali

From the horse's mouth:

http://www.hometrack.co.uk/commentary-and-analysis/house-price-survey/20110127.cfm

% change in new buyers registering with agents -9.5%
% change in volume of property listings -5.4%
% change in sales agreed -13.2%
% of the asking price being achieved 91.9%
% postcode districts with price increase over month 1.8%
% postcode districts with price decrease over month 37.0%

Results

• 2011 began with a sluggish start. The latest survey of over 5,000 agents and surveyors showed a slowdown in both supply (-5.4%) - the largest monthly fall for 4 years - and demand (-9.5%). Falling demand in particular is likely to impact on pricing levels over the first half of 2011.
• In January 2010 demand stood at -2.7%, a sharp contrast to today’s figure of -9.5%. This suggests that the housing market is facing more fundamental underlying issues than the usual post-Christmas slowdown.
• With recent rises in the cost of living, household budgets will only come under further strain if concerns over rising inflation translate into higher interest rates. Mounting concern over a possible interest rate rise will act as a further dampener on demand.
• A considerable number of households will not be directly affected by interest rate rises. Two-fifths of house sales are driven by cash buyers and Hometrack estimate that over 45% of households who own their home do not have a mortgage. This said all owner occupiers will feel the impact of weaker consumer sentiment.
• The supply of homes for sale is likely to dwindle further over the next two quarters. In the short term this will not be enough to offset the downward pressure on prices, but over the course of the year it will begin to act as a support to pricing.
• Nationally, house prices fell by -0.5%.
• Price falls were recorded across 37% of the country, compared to 36% in December.
• Wide variations in the relative health of the housing market can be explained by different underlying dynamics between supply and demand. The average time on the market in the North and Midlands is now close to 3 months, compared to just over 2 months in the South.
• The percentage of the asking price being achieved is falling off a higher base in Southern England although the weakness in pricing is most pronounced in Northern regions.
• Hometrack continues to track the performance of housing markets with high and low levels of public sector employment. It is too early to see evidence of spending cuts having a material impact on local markets but this may change over the course of 2011.

This month's survey was based upon responses from 5,100 agents and surveyors across all 2,300 postcodes in England and Wales.

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