Hometrak: +0.2% MOM. Supply exceeding demand

Graham_Devon

Hometrak up 0.2% in May. not sure what the YOY figure is. Proportion of asking price is at it's highest in London at 96%, but at it's lowest in the North east at 91%. UK wide, it's 93%.

Interesting comments though from Hometrak, demand is lower than supply outside of the south of the UK.

The company said prices outside London were likely to remain static in the coming months as the number of homes on the market outstripped demand and as rising mortgage rates and concerns over the grim economic outlook continued to weigh on the property market.

http://www.thisismoney.co.uk/money/mortgageshome/article-2150974/Hometrack-Average-house-prices-rise-thanks-London--supply-outstrips-demand-elsewhere.html

Generali

Year-on-year = -0.6%.

http://www.bloomberg.com/news/2012-05-28/u-k-hometrack-house-prices-jump-as-london-values-surge-economy.html

From a year earlier, prices fell 0.6 percent in May, Hometrack said. The number of new properties listed with real- estate agents rose 2.2 percent in May from the previous month, when they increased 4.8 percent. The number of potential buyers registering with agents to browse listings increased 0.4 percent, the least since January.

DpchMd

I'm sure the 'demand' would be higher if mortgage rationing was relaxed.

the_flying_pig

DpchMd wrote: »

I'm sure the 'demand' would be higher if mortgage rationing was relaxed.

well, that's what demand is, the product of: (1) how many people want or need something; and (2) how much money they've got to spend on it.

Percy1983

DpchMd wrote: »

I'm sure the 'demand' would be higher if mortgage rationing was relaxed.

Demand for anything goes up if you it away like sweets.

DpchMd

the_flying_pig wrote: »

well, that's what demand is, the product of: (1) how many people want or need something; and (2) how much money they've got to spend on it.

Thanks for that

The_J

"House prices remain practically the same... again" doesn't have quite the same ring to it.

Graham_Devon

DpchMd wrote: »

I'm sure the 'demand' would be higher if mortgage rationing was relaxed.

It would.

Just like demand for cars would fly if the government gave us all 75% off the purchase price.

DpchMd

Graham_Devon wrote: »

It would.

Just like demand for cars would fly if the government gave us all 75% off the purchase price.

Thanks for that.

So tell me, why did you get oh so excited about the line "as the number of homes on the market outstripped demand"?

Generali

DpchMd wrote: »

Thanks for that.

So tell me, why did you get oh so excited about the line "as the number of homes on the market outstripped demand"?

To be fair, it is the key message of the report after the change in price!

I don't know what the relationship is between unsold stock with EAs and prices but it's unlikely to be positive IMHO.

Thrugelmir

DpchMd wrote: »

Thanks for that.

So tell me, why did you get oh so excited about the line "as the number of homes on the market outstripped demand"?

Suggests that pressure on prices remains firmly downward.


As for mortgage "rationing". If Europe implodes then available funds may well contract faster than they already are.