Persimmon expects house prices to rise lol

brit1234

Persimmon expects house prices to rise

Housebuilder Persimmon has said it sold fewer houses in the first half of this year compared with same period in 2010, but expects the housing market to pick up over the rest of the year.:rotfl:

It also said that its average selling price in the period fell slightly, but that again it expected prices to rise over the full year.:rotfl:

Improvement in mortgage lending was the key to building more homes, it said.

It added that it continued to see a "modest improvement" in lending.

Prices 'firm' The housebuilder said it had sold 4,439 homes in the first six months of the year, compared with 4,657 a year earlier.

However, it said sales were starting to improve and it expected to sell a similar number of homes this year as last.

Underlying prices "remained firm" for the year so far, the firm said. The average selling price was £162,000 against £168,936 in the first six months of last year, but this reflected a greater proportion of smaller houses being sold.

"We anticipate that our average selling price for the full year will increase as we legally complete more detached house sales," it said.

Last year, Persimmon made a pre-tax profit of £153.9m, almost double the £77.9m the company made in 2009. Revenues grew 10.5% to £1.57bn.
The average house sale price rose by 4% to £172, 475.

Last week, Nationwide said house prices in the UK had "moved sideways" in the past six months, and recent figures have suggested that mortgage lending remains subdued.

http://www.bbc.co.uk/news/business-14025478

Looks like Persimmon are trying to put a glossy finish on bad news. House prices are to rise because we are selling less for cheaper lol.

Looks like time to get rid of your building company shares as the dead cat bounce and now spring bounce finishes.

martinbuckley

Hamish, Sibley & Renovation Man appear to own houses that do not drop in value - maybe they all have Persimmon Homes?

abaxas

Hot off the news press.

'Walls expects sausage prices to rise'

doire_2

Im mystified why the BBC thinks that this is newsworthy.

A housebuilder thinks house prices will rise.....wow

Batchy

martinbuckley wrote: »

Hamish, Sibley & Renovation Man appear to own houses that do not drop in value - maybe they all have Persimmon Homes?

I think more to the point, they arnt selling, so it doesnt really make any difference.

shortchanged_2

Well seeing as Persimmon specialise in the building of shoeboxes, I'm afraid I'm not too sure about the strength of the market in those.

Persimmon = Lets see how many houses we can fit on the back of a stamp.

angrypirate

Batchy wrote: »

I think more to the point, they arnt selling, so it doesnt really make any difference.

This is what I dont understand. Ok, so Sibley and Hamish own multiple properties each, they arent selling them and yet their entire life on these boards revolve around property price inflation. If they were selling then Id believe a little more of what they have to say about property prices. But they are not so dont have any first hand experience of what the market is doing around them now.

I am looking at buying. I am watching the market closely as well as viewing properties on a regular basis and talking to multiple estate agents. I can say that In my area (london zone 3) properties are not selling quickly at all. In fact most of them appear to be grossly overpriced for what buyers are willing to pay for them. Talking to agents, offers are going in a good 20% less than the asking price but sellers arent accepting them and the buyers arent upping their offers.

DervProf

martinbuckley wrote: »

Hamish, Sibley & Renovation Man appear to own houses that do not drop in value - maybe they all have Persimmon Homes?

TBF, RenoMan doesn't tell us that his house doesn't hasn't or won't drop in value, he just to reminds on a regular basis how much his mortgage isn't costing him. Hamish seems to have gone a bit quiet on Aberdeen house prices recently, I assume this is because they are not rising, or not rising as much as they were. It could be that's he's lost interest in the value of his house, but I doubt it. Sibley ? According to him, no house drops in price, ever.

abaxas

DervProf wrote: »

TBF, RenoMan doesn't tell us that his house doesn't hasn't or won't drop in value, he just to reminds on a regular basis how much his mortgage isn't costing him. Hamish seems to have gone a bit quiet on Aberdeen house prices recently, I assume this is because they are not rising, or not rising as much as they were. It could be that's he's lost interest in the value of his house, but I doubt it. Sibley ? According to him, no house drops in price, ever.

You cant put RenoMan in the same boat as Hamish.

He is taking advantage of the situation, not wishing that someone else gave him free money.

DervProf

abaxas wrote: »

You cant put RenoMan in the same boat as Hamish.

I don't think I did put him in the same boat.

pbouk

i think as a home builder they are living in hope, rather than in reality.