Rightmove Feb: +2.8% MoM +1.2% YoY

HAMISH_MCTAVISH

Miles Shipside, director and housing market analyst at Rightmove comments: “There has been a sprightly start to 2013 and, while market activity remains patchy across locations and property type, some agents are reporting their busiest new year since the onset of the credit-crunch.

While encouraging, it’s far too early to pop the champagne corks as certain sectors will remain on ice until the return of wider-spread mortgage availability.

However, our research suggests that with age comes experience and, more importantly, equity, and it these old hands that seem most confident to plan a move this year.”

New sellers increased their asking prices by 2.8% (+£6,312) this month, pushing the national average up to £235,741. Whilst it is usual to see asking prices increase between January and February, this is the highest average price recorded at this time of year since 2008.

This illustrates the slow but steady recovery in prices, which has taken five years, though it must be noted that the national average can mask the divide in the market between those with access to equity and finance and those without.

http://www.rightmove.co.uk/news/house-price-index/february-2013-overview

-Slow but steady recovery in house prices continues.

-The over-45's main drivers of the market and main beneficiaries of FFL.

-Downsizers and BTL purchasers replacing FTB-s

-Banks continue to subvert intent of BOE with FFL, as not increasing funding for FTB-s.

chewmylegoff

Lowest increase in February since 2009, it was +4.1% last year and except for +0.9% in Feb 2009 it is a significant lower increase than any Feb since 2008. That may just mean that we get a bigger increase than usual in March this year which no doubt will be interpreted in a ludicrous manner by sibley. The index will almost certainly increase for the next few months before dropping back, spiking a bit in October and then falling again.

I find the constant reference to website traffic levels by rightmove to be pointless without a definition of what they are tracking. The website lists rentals as well so unless the methodology is shown its impossible to know whether the traffic being up actually means anything for the sales market.

Turnbull2000

Was expecting some a rather sizeable Spring bounce this year, with particular thanks to Funding for Lending. Unlike the last couple of years, reckon this could carry some momentum. Could be a good boost for consumer confidence.

HAMISH_MCTAVISH

Turnbull2000 wrote: »

Was expecting some a rather sizeable Spring bounce this year, with particular thanks to Funding for Lending. Unlike the last couple of years, reckon this could carry some momentum. Could be a good boost for consumer confidence.

Very likely.

And of course at some point lending will spread to FTB-s as well, can't see the BOE or Govt putting up with the banksters nonsense for much longer, at which point the housing market and wider economy will be firmly on track for solid growth.

shortchanged_2

Turnbull2000 wrote: »

Was expecting some a rather sizeable Spring bounce this year, with particular thanks to Funding for Lending. Unlike the last couple of years, reckon this could carry some momentum. Could be a good boost for consumer confidence.

So higher house prices at a time when more and more are being financially squeezed = a boost of consumer confidence?

So basically more people have more of their income sucked up by housing costs and also have more to spend elsewhere?

Where is all this magical money coming from Turnbull? Unless it goes on plastic fantastic of course.

james_toney

HAMISH_MCTAVISH wrote: »

Very likely.

And of course at some point lending will spread to FTB-s as well, can't see the BOE or Govt putting up with the banksters nonsense for much longer, at which point the housing market and wider economy will be firmly on track for solid growth.

I think when / if lending gets back to FTB and lower deposits houses will only go one way and that is Upppppppppp

not sure that a housing boom would be that good for the economy though

HAMISH_MCTAVISH

james_toney wrote: »

not sure that a housing boom would be that good for the economy though

Well certainly better for the economy than a housing crash.

james_toney

HAMISH_MCTAVISH wrote: »

Well certainly better for the economy than a housing crash.

yes you are right there..

I think we have had the housing crash though. but i think upward trend in houses of a couple % per year will do nicely,

Turnbull2000

shortchanged wrote: »

So higher house prices at a time when more and more are being financially squeezed = a boost of consumer confidence?

Yes. Our economy has been driven by the performance of asset prices, and policy makers are clearly continuing to persue this means of recovery. There's a definitve link between growing house prices and insreased consumer spending.

shortchanged wrote: »

So basically more people have more of their income sucked up by housing costs and also have more to spend elsewhere?

Mortgage repayments as a proportion of earnings are actually rather low thanks to government intervention in the mortgage market.

shortchanged wrote: »

Where is all this magical money coming from Turnbull? Unless it goes on plastic fantastic of course.

Domestically, we have QE, Funding for Lending, local authority first-time buyer mortgage guarantees and innovative Lend A Hand type mortgage products. Then we have a global glut of QE money and savings looking for a home. The government will be more than happy to see a proportion of this diverted into the mortgage and property market, and the remergence of mortgage backed securities.

Longer term, the structural flaws in this model remain unfixed and will indeed come back to bite us. But governments and policy setters don't to long term.

HAMISH_MCTAVISH

james_toney wrote: »

i think upward trend in houses of a couple % per year will do nicely,

We have that already.

There's more on the way...;)

johnny_storm

Turnbull2000 wrote: »

Was expecting some a rather sizeable Spring bounce this year, with particular thanks to Funding for Lending. Unlike the last couple of years, reckon this could carry some momentum. Could be a good boost for consumer confidence.

So the high street is closing down en masse as no one is spending any money and you are expecting house prices to bounce in the spring?

Does not compute.

There's a nice article on Money Week about houseprices

http://www.moneyweek.com/news-and-charts/economic-indicators/uk-house-prices

Which tbh I put more credence in than people with vested interests on a forum about saving money.