House sellers face up to reality...RICS

Graham_Devon

Home sellers facing up to reality and accepting lower offers helped push sales up in October as house prices fell further, the latest RICS report has shown.

Sales activity remains at historically low levels, according to the Royal Institution of Chartered Surveyors, but October saw an uptick in buyers, with eight per cent more member estate agents recording a rise in newly-agreed sales than fall – the best reading for 18 months.

House prices continue to fall with 23 per cent more agents reporting a fall than rise, slightly down on the 23 per cent September figure on RICS’ closely watched property market barometer report.

RICS said that some agents attributed the uplift in sales to ‘growing realism from many sellers, who appear to be more willing to take offers in order to secure a sale’.

House prices are falling across the country, with London the sole exception, with 33 per cent more agents reporting prices rising than falling.

And only agents in the capital see price rising in the next three months, with on average 22 per cent more RICS members forecasting a price fall than rise, however, that could lead to a sales boost with 17 per cent more agents on average expect a rise in sales than fall.

The organisation said that most agents who reported house prices falling said that they were declining at a rate of less than 2 per cent in the three months to October, while many also said average sales values were stable.

RICS housing spokesman, Ian Perry, said: ‘With the chaotic events in the euro area threatening to spillover to the UK and banks still imposing tough conditions on loans to first time buyers, any recovery in sales is still likely to be relatively modest. This will inevitably leave many people who would like to own a home unable to access the market.’

As the messenger I feel I may be shot.

Several times

http://www.thisismoney.co.uk/money/mortgageshome/article-2059062/RICS-House-prices-fall-sellers-accept-lower-offers.html

Mallotum_X

But Graham, some bloke in a made up road said his neighbour sold his house for shed loads, so there can not be a crash (or even a little fall).

Rinoa

Already done this one.

Graham_Devon

Mallotum_X wrote: »

But Graham, some bloke in a made up road said his neighbour sold his house for shed loads, so there can not be a crash (or even a little fall).

Really?

Doh. Feel a bit embarrased posting such an article then. Especially one which indluded the word "reality" when obviously RICS are just all out liars.

HAMISH_MCTAVISH

Duplicate topic.

https://forums.moneysavingexpert.com/discussion/3598489

Really2

So sellers lowering prices from expectant prices to realistic prices?

The ones selling are the ones going in to the sold prices on the indexes so I presume they are coming down to prices similar to what we are seeing in the sold data?

Not a bad call if you can't sell your house, lower it to the price of the ones selling not the price it was worth in 2007.

Good news on increasing numbers of buyers, maybe they can snap up some of these newly dropped over priced property's.

Really2

http://www.rics.org/site/scripts/press_article.aspx?categoryID=509&pressReleaseID=685

here is the horses mouth.

RICS October 2011 UK Housing Market Survey

The UK housing market saw an increase in activity during October, as sales levels rose, and demand edged up, says the latest RICS UK Housing Market survey.

During October, 8 per cent more chartered surveyors reported newly agreed sales rose rather than fell, representing a rebound in activity after the past month’s dip (-3 per cent). Although still at historically low levels, this rise represents the best reading since April 2010. Some surveyors attributed this increase to growing realism from many sellers, who appear to be more willing to take offers in order to secure a sale.

Completed sales also rose slightly, to an average of 15 per surveyor (by branch) over the past three months. While still muted, this represents the strongest level since April (15.1). However, respondents note that if buyers are able to access finance, banks are taking a long time to agree lending terms, which is slowing down the purchase process.

New buyer enquiries which are a good indicator of buyer demand, edged up to a net balance of +7 per cent (from +4 in September). Meanwhile, new instructions (which highlight supply levels) also increased, moving from a net balance of -4 per cent to +3 per cent in October. Surveyors added that uncertainty in Europe spilling over to UK economy and restricted mortgage availability are still impacting on the market, resulting in caution from buyers.

Prices continue to remain in negative territory, and dipped slightly in October, with 24 per cent more surveyors reporting prices fell rather than rose (from 23 per cent more in September). However, more than half of all respondents indicated that prices were stable and of those reporting a decline, almost three quarters suggested the extent of the fall was between 0 and 2 per cent.

Regionally, London continues to be the only region recording rising prices at the present time; it is also the only area where the price expectations net balance is positive. By way of contrast, new buyer enquiries and sales expectations appear to be edging upwards across rather more of the country, with demand for property strongest in the South East and the North West .

Over half are reporting stable prices. Of those reporting falls 2/3rds were between 0% and 2%?

Not quiet as bearish as the news article?

No need to shoot anyone, vary much like the sold price data. Rises in the SE falls in the E and NE and stable pretty much everywere else.

The house prices "falling across the country" looks and add on? the truth is prices seem to be falling in less than 1/4 of the country.

rozeepozee

Does anyone believe what the estate agents tell us about the state of the housing market? They aren't exactly independent observers are they?

Really2

rozeepozee wrote: »

Does anyone believe what the estate agents tell us about the state of the housing market? They aren't exactly independent observers are they?

Depends, you can see it two ways.

They are constantly accused of ramping house prices but then in reality need to sell houses so it is within their interest more sell?

TBF the RICS is a good indicator of pricing sentiment, perhaps more reliable than rightmove.

But not really an indicator of average house prices as the report says 23 more say falls over rises, over half say stable the rest say increases.
That could translate to anything but more likely to the stagnation / minute falls we are seeing in sold data.

shortchanged_2

Really2 wrote: »

They are constantly accused of ramping house prices but then in reality need to sell houses so it is within their interest more sell?

To be honest in a downwardly pointing market I don't believe as you state Really2 that it is in a EA's best interests to overprice property, only maybe to get the house on their books by flattering the vendor.

I think the problem lies with the vendors who are telling the EA's what price to market the property and it is the vendors who are the ones that are being unrealistic with the asking and selling prices.

Really2

shortchanged wrote: »

To be honest in a downwardly pointing market I don't believe as you state Really2 that it is in a EA's best interests to overprice property, only maybe to get the house on their books by flattering the vendor.

I never said that, I said

Depends, you can see it two ways.

(way 1)They are constantly accused of ramping house prices but (way 2) then in reality need to sell houses so it is within their interest more sell?

Way 1 = How many blame the bubble on them by inflating prices. (ignoring it is infact the people willing to over pay that casue them to rise)

Way 2 = Means it is within their interest to sell more, basically that means under state pricing so they sell more.

I agree it is the vendors, I was just responding to the view agents are not independent observers. And the view they may over value may be countered with the argument they need to sell to make money.