Guardian: House Prices Fall 0.9% In november

geneer

http://www.guardian.co.uk/money/2011/dec/06/house-prices-fall-november-halifax

Strange that the nice estate agent doesn't point out that land registry is a lot less volatile because of its significantly greater
volumes.

House prices fell by 0.9% across the UK in November 2011, partly reversing the 1.2% rise in October, according to the latest Halifax house prices survey.

It said the average home is now worth £161,731, down 1% compared to November 2010. And Halifax said the underlying trend is downward, with November marking the third fall in the past four months, dragging house prices down by 0.6% in the three months to November compared to the previous quarter.

Despite the negative trend, Halifax housing economist Martin Ellis said house prices had been stable: "[November prices continued the] mixed monthly pattern seen this year. House prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households' finances.

"The UK average price now is only marginally lower than at the end of 2010. In addition, activity has recently shown a few signs of strengthening a little. We expect the market to remain broadly unchanged in terms of both prices and sales over the coming few months as demand and supply conditions alter little."

In November 2011, Land Registry figures showed house prices falls accelerated in October with a drop of 0.9%. This was immediately contrasted by Nationwide, which said the housing market remained "surprisingly resilient" in November.

"The Halifax house price index has muddled the debate even further by issuing a decidedly downbeat snapshot of the market," said Tracy Kellett, director of the estate agency BDI Homefinders. "Behind the apparently contradictory data lies a housing market which is still essentially stagnant, with paltry levels of transactions.

"This is why tiny variations in the numbers will make house price indexes fluctuate wildly. But such volatility should never be confused with progress."

Howard Archer, economist at IHS Global Insight, pointed out how far house prices were below their peak: "On the Halifax measure, house prices last peaked at £168,593 in April 2010 and fell to £160,393 in April 2011 before moving back up to £163,765 in July 2011. They stood at £161,731 by November. Consequently, they were 4.1% below their April 2010 peak. The all-time seasonally adjusted high for house prices on the Halifax measure was £199,612 in August 2007, so house prices in November 2011 were 19% below this level.

"We currently see house prices falling by around 5% from current levels by mid-2012 before stabilizing in the latter months of the year."

Halifax claims to operate the UK's longest-running house price index, with data going back to January 1983. But Land Registry figures are generally considered a more accurate reflection of house price movements because it publishes data from actual registered transactions.

RenovationMan

"It said the average home is now worth £161,731, down 1% compared to November 2010. "

That fact shook me, I thought the falls were far higher than that. Is it really the case that property bears have been holding off buying a house in order to pick up a bargain in the 'housing crash' and prices are down just 1% after 12 months?

They would have paid off more than 1% off the mortgage if they had bought 12 months ago and would have saved rental costs.

It's a shame that they didn't have more financial awareness classes in schools. Hopefully Martin's campaign will help to remedy that.

marlonthemagnificent

land registry says down 3.2% in the last year

that pay's for my rent, plus some on top

and i've had no buildings insurance and no repair bills

:rotfl:

lisyloo

The land registry being down 3.2% pays your rent?

I suspect this person is renting and is comparing not having the paper loss of 3.2% on their equity had they been invested in property.
Obviously that's not a real gain and we don't know what their investment returns have been elsewhere.
So there is a bit more to it.

marlonthemagnificent

if i'd have bought, that 3.2% is gone
as it is, i still have it, and my lump sum in increasing in value
overall, i'm way, way better off renting

wotsthat

marlonthemagnificent wrote: »

if i'd have bought, that 3.2% is gone
as it is, i still have it, and my lump sum in increasing in value
overall, i'm way, way better off renting

It sounds like a win win.

You've lived in rented accomodation for a year and seen house prices fall 3.2%.

You've probably paid a good chunk off your landlords mortgage for him too.

At least you've not had maintenance to pay - how much did it cost your landlord this year?

marlonthemagnificent

re-roofed, with new barge boards
external painting
new boiler

i'd guess at a minimum of 15,000

why anyone wants to own is beyond me...

your much better off renting

RenovationMan

marlonthemagnificent wrote: »

re-roofed, with new barge boards
external painting
new boiler

i'd guess at a minimum of 15,000

why anyone wants to own is beyond me...

your much better off renting

An obvious Bull sockie. Seems a waste of time and effort, but each to their own.

IveSeenTheLight

marlonthemagnificent wrote: »

re-roofed, with new barge boards
external painting
new boiler

i'd guess at a minimum of 15,000

why anyone wants to own is beyond me...

your much better off renting

classics

Doesn't all rental property ned re-roofing and boiler changes every couple of year?

Nevermind, tenants must not realise that maintenance is tax deductable or indeed covered much more under the wear and tear option.

heathcote123

RenovationMan wrote: »

"It said the average home is now worth £161,731, down 1% compared to November 2010. "

That fact shook me, I thought the falls were far higher than that. Is it really the case that property bears have been holding off buying a house in order to pick up a bargain in the 'housing crash' and prices are down just 1% after 12 months?

They would have paid off more than 1% off the mortgage if they had bought 12 months ago and would have saved rental costs.

Yes, it does seem to be a bit harsh doesn't it, paying 5 or 6% in rent for a 1% drop.

But they'll all tell you they are fine, because it dropped in real terms. Bears only work in real terms you see.

marlonthemagnificent

known as a loser?

what...when i've made a high 6 figure sum from investing in metals and stocks in the last 5 years, as house prices have plummeted..

yeah...what a loser i am