December Rightmove Figures - London 6.8%, Nationally 3.2%

jamesd

jonewer, looking at the story in other papers Rightmove blames the HIPs and property mix change from 38% to 48% one or two bedroom properties for 1.1% of the UK fall, more in London: "Miles Shipside, commercial director of Rightmove, said: 'New listings are very low at this time of year so the artificial wave of 'low-end sellers' has really distorted the average prices of new properties coming onto the market'".

BettiePage, it's irrelevant what it is on a 200k house. The change is 10% more of the properties on the market being one and two bedrooms, at 26% increase in those. Say the mixture of properties was 300k average for those with more than two bedrooms and 140k for two bedroom or smaller. With the original 38% low value, 62% high value mix the average price would be 239.4k. Now the mix changes to 48% low and 52% high and the average price falls to 223.2k - a 7% drop. All without any of the properties changing price. The real mixture of prices is more complicated than this but the effect of a few people selling early to avoid paying 500 for a HIP on cheap properties isn't insignificant for the index.

ds1980

ruggedtoast wrote: »

Surely you mean that 2 houses in your street had offers in the last week? Dont be surprised if you see those For Sale boards back up in January.

Maybe so but i was commenting on the house price falls.

Also See that no one mentioned that out of the last 6 years there has been 5 house price falls in december.

jonewer

ds1980 wrote: »

Also See that no one mentioned that out of the last 6 years there has been 5 house price falls in december.

True enough but the fact that London and Kensington and Chelsea are seeing the biggest falls is highly significant.

It is received wisdom (to some) that London will never encounter falls as its a global cosmopolitan city yaddayaddayadda... now to see London and K&C (uber London) showing the greatest falls, well thats certainly something to talk about.

pamaris

ds1980 wrote: »

Maybe so but i was commenting on the house price falls.

Also See that no one mentioned that out of the last 6 years there has been 5 house price falls in december.

Yes, but let's look past December. Here are the last 6 months of figures:
July .3
August .6
Sept. -2.6
Oct 2.7
Nov -.7
Dec -3.2

Not sure if my maths are up to scratch but this means that if you bought a property for £100k at the end of June it would now be "worth"about £97k. So, the trend is down.

pamaris

Just noticed that my area (the northwest) is the first to show year on year falls, and so I ran the numbers. Here are the northwest numbers for the past 6 months:
July -1.1
August 2
Sept -2.8
Oct 1.5
Nov -1.7
Dec -2.3

By those figures, if you bought a property for 100k in June it would now be worth 95582. I think this is it.

HenryWeston

Rightmove house price report, down they go

http://www.rightmove.co.uk/pdf/p/hpi/HousePriceIndex17thDecember2007.pdf

WTF?_2

You also have to remember that Rightmove have a vested interest in pimping the property market so if they are reporting falls, then you can be sure that things are probably even worse in reality.

Given the sheer amount of coverage in the media now, it's doubtful that even the most dedicated numbskull could deny what we are seeing happening to the housing market.

pamaris

Oh don't worry, it will pick right up after Christmas. Everything will be different then.

dannyboycey

!!!!!!? wrote: »

You also have to remember that Rightmove have a vested interest in pimping the property market

Would love to hear that kind of terminology on BBC news read with a dead pan face in the Queen's English!

ds1980

im not saying there not coming down however a trend is over time it is not a snapshot.

I still wonder where they get these figures from. We bought our house about 1 year ago. According to the house prices in the area it has gone up 10% or so.

So simple maths says that it is now worth £264k.

It is on the market for £340k 2 houses very nearby are on at £360k each and one as mentioned went under offer at £375k last week so i think we're priced relatively well. All 3 bed semi's.

If we sell at £340k then thats 40% increase in a year. £300k thats 25%.

So the 10% average is completely irrelevant to people taht might have bought cheap or sold high or added value etc etc.

I don't read about figures its what happens in real life and if the figures don't concern you ie either you are buying or selling....not looking then I can't work out what the fuss is all about.

If prices drop we'll rent it and buy another place cheap or just stay where we are.

Prices won't fall back to reasonable levels. Wage increases will be the way that houses will become more affordable not through "missed the boater's" hoping and praying.

If you can't afford a house now get a better job and save some money until you can. Don't wait on monthly figures! If its a home then what does it matter.