Rightmove August -1.8% MoM +5.5% YoY

HAMISH_MCTAVISH

Key points

• August’s 1.8% (-£4,459) drop in new sellers’ asking prices is 2013’s first fall but is more modest than usual for this time of year indicating that the steady market recovery continues

• As demand begins to outstrip supply, January’s extension of the Help to Buy scheme must be clearly marketed to potential sellers, as well as buyers, to help balance supply and demand

- Demand from home-movers is already returning with the number of email leads sent from Rightmove to agents and developers up 17% year-to-date

- Property transactions are also up 5% while the supply of property coming to market lags behind increasing by a mere 0.2% so far this year – record prices for flats highlight the issue

- Economic recovery, low interest rates, and Help to Buy all boost demand but, to avoid a return to excessive house price inflation, this needs to be balanced by greater supply from more sellers, increased construction of new builds and more residential conversions

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

Interesting data on supply and demand too....

The number of properties coming to market so far in 2013 is up just 0.2% on the same eight months in 2012, an increase of just 1,664 properties.

However, this marginal improvement in fresh supply is outstripped by a 5% jump in transactions and a 17% annual increase in email leads to agents and developers from Rightmove so far this year.

The natural lag between an increase in demand and a corresponding increase in supply could cause a short-term step-up in house price inflation over and above what is currently being seen.

When, or if, property supply responds will be key in determining how long and how marked any inflationary period might be.

Anyway, year on year continues to increase in this non seasonally adjusted index, so.....

:beer:

chewmylegoff

Last 5 Augusts including this one have been
-1.8%
-2.4%
-1.7%
-2.2%
-2.3%

I am not really convinced therefore that this is less than the usual fall in August as it looks completely in line with previous years to me although it is notable the July was negative in all previous years but not this year.

I think September will be +ve again personally...

Hopefully Brit will be along soon to do his usual comparison of the rightmove average asking price with the land registry average sold price and declare that properties are selling for 75% of asking price. I do enjoy that even more than a pointless "HPC have banned me boo hoo hoo" thread.

Sibley

I think HPC negative comments on the Daily Express website have seriously effected asking prices.

Homeowners are knocking thousands off chasing down the market.
Bruce Spanners area will be 40% down by Xmas....:rotfl:

HAMISH_MCTAVISH

Heh heh....

All those bears still on holiday I see.....

noodle_doodle

psst.... what happened to those HPC threads, has Banner got pull over here?

Loughton_Monkey

HAMISH_MCTAVISH wrote: »

Heh heh....

All those bears still on holiday I see.....

A silly assertion, since (as we all know) bears can't afford holidays. I think they have all dispersed to the woods, in order to dump huge quantities of doo-doo. In fact they had become so full of it, it constituted quite a bubble I'm told....

Percy1983

Oh look its gone down, still meaningless.

mystic_trev

Blimey, I never thought I'd hear Shipside say this!

It is now critical that the supply of property improves so that the goal of a significant increase in transaction numbers is not over-shadowed by an unsustainable boom in property prices.

http://www.rightmove.co.uk/news/house-price-index/overview-6

Graham_Devon

I never thought I'd see him saying this...

Tougher lending criteria following the Mortgage Market Review will also temper some first-time buyer demand and guard against a lending free-for-all like the one that inflated the last property bubble”.

Calls for tougher lending criteria to stop us falling into a lending free for all!?

mystic_trev

Graham_Devon wrote: »

I never thought I'd see him saying this...



[/I]Calls for tougher lending criteria to stop us falling into a lending free for all!?

Thanks

I wonder what bubble he's talking about? He was saying prices were sustainable in 2007.

If stage two of help to buy goes through (and I can't see why it won't) there's no doubt house prices will rocket. I can see rises of 10% with SE (and Aberdeen ) hotspots rising as much as 20% Looks like an Election winner for the Conservatives. What happens once the 'help' is removed, who knows?

Thrugelmir

Graham_Devon wrote: »

Calls for tougher lending criteria to stop us falling into a lending free for all!?

There's no sign of that. Remove Government intervention and the underlying trend is flat/negative.