Rightmove Feb: +4.1% - Prices rise at fastest rate in a decade!!!

HAMISH_MCTAVISH

New sellers increase average asking prices by 4.1%, highest monthly increase since April 2002

• Surprisingly strong spring ‘price-pump’ by scarce sellers fuelled by cash-rich market sectors where demand exceeds supply, though also some evidence of increasing housing market confidence:

- More mortgage deals - number of products available with 10% deposit up a third on a year ago

- Nationally five out of ten view property as a lower risk asset class, while six out of ten state they feel the current market favours buyers suggesting buyer bidding-power

- Evidence of dormant buyers ‘springing back to life’ suggests some adjustment to the current volume-constrained but stable market as the new norm

• Upwards price-pressure sustainable in active cash-rich micro-markets with stock shortages – London prices now within 1% of an all-time high, as new listings down 9% on this time last year

Adjusting to ‘the new norm’
Record January search activity on Rightmove indicates a pent-up desire to move that out-weighs the uncertain economic outlook. With sales transaction numbers having been depressed for the last four years, many households will have a pressing need to move, and some of those that are able to do so seem to be springing back to life.

Shipside comments: “Search activity on Rightmove is up by 19% on January 2011, and it could be a sign that some of those who can afford to move have decided to get on with their lives, driven either by desperation or by coming to terms with the constant barrage of negative economic news being the new norm. You can get tired of gloomy news, or get used to it, and indeed for some cash-rich buyers life has moved on to such an extent that it’s like the Lehman Brothers collapse never happened”.

Dwindling stock
Some agents report that sales achieved in the last quarter of 2011 have now left them short of saleable stock. In October last year average unsold stock per estate agency branch was 75 properties, and this has now fallen to 67.

This is further evidence of a pick-up in buyer confidence and demand starting to eat away at the rump of unsold stock. Lack of capacity in the new-build sector and sellers’ reticence to come to market also means that properties that are coming off the market are not being replaced at the same rate.

Average weekly listings are currently running at circa 30% below pre-credit crunch levels, and new seller numbers continue to be as depressed as those of 2011. The weekly run-rate of 24,406 new listings is virtually unchanged on the 24,327 recorded in the same period last year. Upwards price-pressure is likely to be sustainable in active cash-rich micro-markets with a shortage of new listings. For example, London asking prices are now less than 1% off their all-time high, with property coming to market down 9% on this time last year.

http://www.rightmove.co.uk/news/files/2012/02/february-2012.pdf

AndyGuil

I've seen quite a few properties taken off the market and put back on at a higher price a month later. This implies they were not getting satisfactory offers the first time, so instead they can be seen to offer a discount the next time. Still doesn't stop someone seeing this has been done when you look at the previous sales. The environment has not improved unfortunately.

EchoLocation

New sellers increase average asking prices by 4.1% :think: Hmm.

Graham_Devon

Surprising to say the least.

Can it even be called a spring bounce though? It's winter?

The biggest jump in new sellers’ asking prices for nearly ten years indicates there is pricing power if you are selling the right type of property in the right place where enough potential buyers have access to funding. If your local market does not have those characteristics and your price-pump is based on little more than seasonal optimism and an estate agent’s hot air, then be prepared for buyer response to be a let-down.

Wonder what this is actually made up of? Seems the fluctuations are getting bigger. We had the biggest ever drop in a month not long back didn't we?

Apparently Richmond-Upon-Thames has seen a 15.7% increase in average asking prices this month? Seems somewhat bizzare.

ukcarper

pretty meaningless just as when they fall by 4%

EchoLocation

Graham_Devon wrote: »

Surprising to say the least.

Not for me, it's been very noticable on new listings this year. Bizarrely though there are similar, and in many cases better, properties already on the market; not only at lower asking prices but also being reduced at the same time as these new listings appear. I think we should substitute 'New Sellers' for 'Deluded Estate Agents' in this case.

Graham_Devon

There was someone on the house buying forum not too many days ago who stated their estate agent had told them to put the price up higher than usual and accept a much lower offer, as the offer wouldn't be quite as low as if they had put the house up for the recomended sale price.

Can't exactly state this is nationwide, but just wondering how widespread such a thing would be?

Sibley

Made my day this news.
The Express will make sure this gets to as many people as possible.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Surprising to say the least.
.

Certainly interesting.....

Graham_Devon

HAMISH_MCTAVISH wrote: »

Certainly interesting.....

In a way. Be interesting if the fluctuations continue to get bigger and bigger.

It's only November where there was a +3% fall in asking prices. It seems to swing pretty wildly at the moment....just wondering what's at play here to create these large swings.

I mean....15.7% up in a month in Richmond-upon-Thames? What's going on there. Are the volumes so low that one or two houses skew the data wildly?

Percy1983

Can we all just agree an index based on asking prices has very little meaning (if any).