Rics - worse figures since 1996

mystic_trev

The England and Wales housing market is in its weakest condition since 1996, according to the Royal Institution of Chartered Surveyors (Rics).

Findings from the organisation's monthly housing market survey show some 64.1 per cent more surveyors reported a fall in prices than a rise during February – up from 54.8 per cent in January.

This figure is close to the historical low of June 1990 when 64.5 percent more chartered surveyors reported a fall in house prices.

Surveyors reported prices declined at a faster pace than in the previous month across all regions in England and Wales, except for the north.

http://www.aboutproperty.co.uk/news/house-prices/rics/rics-market-conditions-worst-since-1996-$1211128.htm

brit1234

With all this evidence of house price falls bulls are fast becoming endangered. I think the majority of us realise the crash is happening, what is up for discussion now is now big the crash will be.

mystic_trev

............and

http://news.bbc.co.uk/1/hi/business/7288506.stm

pickles110564

brit1234 wrote: »

is now big the crash will be.

100% that seems about right.

IveSeenTheLight

mystic_trev wrote: »

............and

http://news.bbc.co.uk/1/hi/business/7288506.stm

From your linked article

Effect on stock
Employment levels remain strong in the UK, which means homeowners are under little pressure to sell.
Yet a lack of demand meant the stock of unsold property on surveyors' books was up 8.5% in February, the fifth monthly rise in excess of 8%.
"Confidence in the market is clearly having an effect on prices," said Rics spokesman Ian Perry. "While there is very little new supply coming onto the market, it is unlikely that there will be significant price drops in the short term but the build up of unsold stocks will encourage buyers to negotiate lower asking prices."

So with "Employment levels remain strong in the UK, which means homeowners are under little pressure to sell. " and "very little new supply coming into the market" where does this signify a "crash"

The article even states "it is unlikely that there will be significant price drops in the short term "

sure the article says "the build up of unsold stocks will encourage buyers to negotiate lower asking prices" which indicates a price drop, but do you regard this as a crash?

Sisyphus

IveSeenTheLight wrote: »

From your linked article

So with "Employment levels remain strong in the UK, which means homeowners are under little pressure to sell. " and "very little new supply coming into the market" where does this signify a "crash"

The article even states "it is unlikely that there will be significant price drops in the short term "

sure the article says "the build up of unsold stocks will encourage buyers to negotiate lower asking prices" which indicates a price drop, but do you regard this as a crash?

If you check out recent statement from Bovis et al, you will notice there is even less new demand coming into the market.

the build up of unsold stocks will encourage buyers coupled with the evaporation of imprudent mortgage deals will encourage buyers to bide their time .

mystic_trev

IveSeenTheLight wrote: »

From your linked article

So with "Employment levels remain strong in the UK, which means homeowners are under little pressure to sell. " and "very little new supply coming into the market" where does this signify a "crash"

I didn't mention anything about a crash - there's a seperate 'sticky' for that! All I said was that RIC's had posted the worst figures since 1996!

jimc_2

Why is everyone shouting here?

As mystic_trev has said there's a sticky for rants and opinions about a crash. At present there are merely indications and no solid proof of what the situation will be in even 6 months time. All we can be sure of is that some people will feel gratified and others will feel bitter.

I'm not taking sides!

dannyboycey

jimc wrote: »

I'm not taking sides!

I am _party_

fimonkey

I've booked a ringside seat!

Conrad

Accord (Yorkshire), C & G, IF all reduced max LTVs to 90% as they anticipate price falls anf they dont want to be left holding negative equity assets.

SALT, Amber and Scarborough all withdrew completely from sub prime lending in the last 7 days.

No more 100% let alone 125% funds available.

Most lenders pulling out of self cert lending.

Nearly all heavy adverse schemes been withdrawn.

Thats got to be at least 20% of cash removed from the property m,arket so far. That means 20% less cash available to buy up property.

Furthermore income multiples are falling fast so there is a miss match between the prices being asked and mortgage sums now available.

Sellers can hold out as long as they like, but if the cash aint there in sufficient quantity......