FT - UK house (asking) prices reach record high as Rightmove surges 1% in May

shortchanged_2

Just more evidence of deluded sellers.

How do these people think that buyers can now afford these silly asking prices when the banks simply aren't lending the amounts to be able to afford them?

Ohh yes, the evidence is in the level of transactions. Basically people can't afford these prices.

CLAPTON

family friend trying to buy in yorkshire (in a nice area)

has made offers on three house so far; each has sold at above asking price.

I make no generalisations from this

Mr._Pricklepants

CLAPTON wrote: »

each has sold at above asking price.

That's what I see in my area too.
Each property sold within weeks (or days) and asking price achieved or sold above.

I love it when the bears come up with "ahaha, it's just asking prices...look i have a mars bar I bought for 55p and I sell it for £5...hahhahaa!"

Asking prices are a barometer of the housing market.

paulmapp8306

Here we go again

House prices are in general stagnant. They are NOT going up - and they are NOT falling.

Slight variations on a month to month basis, and in geographical areas - but generally speaking house prices are remaining static - they have done for the last 2-3 years and IMO will continue in the same vein for the next couple of years.

OK - in REAL terms, that means falls due to inflation, BUT in AFFORDABILITY terms it makes them static as well (as wage rises are few and far between - and dont generally meat inflation when they are given). Its possible that due to rises in other things - such as utilities/fuel - that in Affordability terms - prices are actually rising slightly (that is it cost more of your disposable income to buy the same house at the same price as it was last year DESOPITE that price falling in real terms).

So - in REAL terms prices continue to fall slightly, in ACTUAL terms and in AFFORDABILITY terms (both of which are far more important the any fictitional "real term" price) house prices remain static.

As always in statistics, they can be made to say anything, and back any argument.

paulmapp8306

shortchanged wrote: »

Just more evidence of deluded sellers.

How do these people think that buyers can now afford these silly asking prices when the banks simply aren't lending the amounts to be able to afford them?

Ohh yes, the evidence is in the level of transactions. Basically people can't afford these prices.

Quite possibly - though Im just buying as its the first time in years I CAN afford it (at current asking prices). However its not necessarily deluded sellers. Those already on the ladder arnt affected too much by house price fluctuations. if asking prices for the property your buying go up - so does the asking price of the one your selling. Its ONLY an issue for FTBs. The thing is - people selling cant always afford to lower prices, or they wont have the equyity they need (or undeed any equity) to move up the ladder. THAT is why we have slow sales.

What makes you think an existing owner will put them in a position where they cant afford another property just so they can sell the one their in? There not going to. They will ask what they need, and if it doest sell- then it doesnt sell and they stay put. the only properties that will fall in price are reposessions, houses sold from an estate (on death) and those who have lots of equity (so they can get their own bargin).

Just because people cant afford the house prices - doesnt mean they will come down. Thats FAR too simplistic and only looks at one side of the coin.

Graham_Devon

CLAPTON wrote: »

family friend trying to buy in yorkshire (in a nice area)

has made offers on three house so far; each has sold at above asking price.

I make no generalisations from this

How does everyone know what the houses they are interested in sell for?

Geneuinely interested, as it takes a fair old while for this information to be released via the land reg, yet it seems many on here all know how much houses are selling for if they are interested in them?

Maybe pricklepants can enlighten me how he knows the finances on every house in his local area within days, but I certainly won't hold my breath.

CLAPTON

Graham_Devon wrote: »

How does everyone know what the houses they are interested in sell for?

Geneuinely interested, as it takes a fair old while for this information to be released via the land reg, yet it seems many on here all know how much houses are selling for if they are interested in them?

Maybe pricklepants can enlighten me how he knows the finances on every house in his local area within days, but I certainly won't hold my breath.

In the situation I describe the friend has been looking for about a year and has made the three offers spread over that time (actually just made a fourth offer that has been accepted at just over the asking price). The sold prices of the three are available on the websites.

shortchanged_2

paulmapp8306 wrote: »

Quite possibly - though Im just buying as its the first time in years I CAN afford it (at current asking prices). However its not necessarily deluded sellers. Those already on the ladder arnt affected too much by house price fluctuations. if asking prices for the property your buying go up - so does the asking price of the one your selling. Its ONLY an issue for FTBs. The thing is - people selling cant always afford to lower prices, or they wont have the equyity they need (or undeed any equity) to move up the ladder. THAT is why we have slow sales.

What makes you think an existing owner will put them in a position where they cant afford another property just so they can sell the one their in? There not going to. They will ask what they need, and if it doest sell- then it doesnt sell and they stay put. the only properties that will fall in price are reposessions, houses sold from an estate (on death) and those who have lots of equity (so they can get their own bargin).

Just because people cant afford the house prices - doesnt mean they will come down. Thats FAR too simplistic and only looks at one side of the coin.

How do you think house prices got where they are now?

Let me tell you. It was caused by a raft of loose lending which included such things as IO mortgages, liar loans, high income multiple loans and 100% + mortgages.

Now guess what. These levels of lending are now not present therefore many people cannot now actually 'afford' to pay the prices that people are asking. Low interest rates are saving a number from being forced into selling so many sellers can currently sit and wait for eternity with interest rates as they are.

Of course there are some on here that are advocating the return to those levels of lending again but it is simply not the answer. It is simply just adding fuel to the fire again and an overpriced property market does more harm than good as I'm sure we can all see now. It is an unproductive form of wealth creation.

FTBFun

shortchanged wrote: »

How do you think house prices got where they are now?

Let me tell you. It was caused by a raft of loose lending which included such things as IO mortgages, liar loans, high income multiple loans and 100% + mortgages.

Not a structural shortage of property then? As the increase in rental prices in recent times indicates there's a supply restriction somewhere - whilst still having a demand for property in some manner of occupancy.

homelessskilledworker

wotsthat wrote: »

Rightmove's primary function is to provide a searchable database of properties for sale. As far as I can tell they seem to do a pretty good job of this.

Just because they index asking prices and you don't like the numbers doesn't mean there's something wrong with Rightmove does it?

I neither like or dislike their figures, I just question their accuracy, there is not a problem doing that is there?

And yes as a nationwide data base of properties, Brilliant!!

Try stop being so emotive about everything:), you will find that I have questioned their figures in good and bad times, but of course(and as usual) thats not what you want to hear.