House prices tiptoed up just 0.1% in May, according to the Halifax, but the lender said the overall trend is downwards. The average house price now stands at £160,519, down 4.2% on a year ago.
Halifax chief economist Martin Ellis said: “House prices continue to drift modestly downwards as measured by the underlying trend.
“Prices in the three months to May were 1.2% lower than in the previous three months, unchanged from April. There was a 0.1% rise in prices in May following April’s 1.4% decline.
“Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances. Confidence is also weak as a result of uncertainty about the economic and employment outlook. These factors are probably constraining housing demand and applying some downward pressure on prices.
“Overall, we expect a moderate improvement in the economy during the remainder of 2011, which combined with continuing low interest rates is likely to support housing demand. This should prevent a further marked fall in prices and help to stabilise property values later in the year.”
Meanwhile, house prices in Scotland are falling.
According to the Edinburgh Solicitors Property Centre, house prices in east central Scotland dropped in the three months to May and are now 4.4% lower than a year ago.
The ESPC said that the number of homes currently available for sale is 35% higher than it normally expects. It forecasts a further fall of between 3% and 5% for the rest of this year.
Comments
Bloddy window shoppers.
Facebook: check
Twitter: check
Youtube:check
Rightmove:check
EAT: check
Back to rightmove, this time including SSTC properties:check
Back to EAT to bitch about it: check.
gb58: "But the most important thing is what's happening
in my search area at my price range.
Out of the 55 properties for sale,3 have gone SSTC in
the last 2 weeks.
But these are also the only 3 to go SSTC in the last
7 months!!!!!"
Oh, dear - sounds like you've missed the boat, then, dunnit?
Just when you were getting all smug that NOTHING was selling - a mini-boom!
Shame...
You snooze... you lose!
Bending over for everyone it would seem.
PeeBee - GB58 is onto it here, he's looking at what's happening where he wants to buy and is making decisions on that, I do feel he's done a mild 'reverse ferrett' as the afternoon has gone on and backed of a smidge on the headline HBOS number but it's like Rant with his Midlands area - he doesn't like what he sees so he's waiting...................
............and telling everyone
Jonnie
PeeBee--I take Halifax's comments with a pinch of salt,
in the same way as I did the ''Japan style collapse''
prediction.
The things I pay attention to are the monthly
mortgage and sales figures-----------and both are falling,
But the most important thing is what's happening
in my search area at my price range.
Out of the 55 properties for sale,3 have gone SSTC in
the last 2 weeks.
But these are also the only 3 to go SSTC in the last
7 months!!!!!
Faced with these facts I don't see me buying any time
soon and no ''expert'' prediction is going to change
that.
gb58: Well - when it comes to pathetic responses, you obviously kow your stuff!
YOU STATED:
"House prices ARE 4.2 % lower than the same time last year.
On the front page of the latest Halifax report it states
Annual Change -4.2%"
NOW read my response.
Erm... oops?
Now - back to the OTHER comments on the report I asked for your opinion of. Cat got your tongue?
“Overall, we expect a moderate improvement in the economy during the remainder of 2011, which combined with continuing low interest rates is likely to support housing demand. This should prevent a further marked fall in prices and help to stabilise property values later in the year.”
Isn't that what they said in the Summer of 89 too.
Wow--what a typically pathetic response.
Nowhere did I say that the annual MoM fall was 4.2% lower.
The 4.2% is the result of the universally accepted
way of measuring Halifax house price data.
The same method you were more than happy to use
(and quote) in your original post.
True Ray, if I were buying or selling a property i'd only be concerned with the local trends but it's these such headlines (be they up or down) that influence public perception which is far more powerful than the Bridlington Gazette's front story of a wheelie bin knocked-over.
Wardy – is that bad back due to bending over backwards for your vendors?!
Ray Evans – you’ll get grief for that mate, the HPC guys will point out that when it was all up, up, up us EA’s didn’t care about house types / splitting it up we just liked managing clients who added the Halifax Index Increase on every month onto what the were on at once you get an offer.
……..I did a land deal in the ‘up, up, up’ times and the vendor wanted it index linked to his postcode area so he got the HBOS index inflation once / if planning went through – trouble was even then in that postcode it stood still for the thick end of 2 years, he was a bit cross.
James – livin’ the dream mate all of them but sadly its only us lot that can value a house / convey to the vendor the true vale and not list the daft ones that come on here for a slapping……….we may have more in common with the HPC guys than we think?!
……………Will Hicks – just to be clear mate, that’s not a ‘bumming invite’ so don’t misread it again, after that pub toilet comment you made yesterday I know I have to tread carefully with you.
Jonnie
Hmmm...
gp58 - it appears I made a mistake which you have kindly (and as politely as I woud expect from the HPC Militia...) pointed out. Yes - I used the Q1 figures in error.
HOWEVER, you are also incorrect. The ACTUAL YoY differential is actually 4.05%, measuring May 11 against May 10. NOT 4.2%. I repeat Halifax' own explanation of the yearly comparisons -
"On an annual basis, prices in May were 4.2% lower as measured by the average for the three months to May against the same period a year earlier."
Might not be much different to the 4.2% you are all getting moist about - but nevertheless it is LESS - and therefore needs to be reported.
You may also (not) want to see that April 10 to April 11 was -4.65%, so there is a MARKED improvement in only one months' worth of reporting! Oh, shame...
The report ALSO states:
"Overall, we expect a moderate improvement in economic activity during the remainder of 2011. This, combined with continuing low interest rates, is likely to support housing demand, which should prevent a further marked fall in prices and help to stabilise property values later in the year."
And to this you would say...?
Over to you.
All rubbsih - according to my competitors new listings they are soaring
Bring on the receivers
More rubbish from the resident know-all.
House prices ARE 4.2 % lower than the same time
last year.
The latest prices are for MAY 2011.
Sorry for stating the obvious,but Q1 covers Jan--Mar.
On the front page of the latest Halifax report it states
Annual Change -4.2%
Funny this.
Most published statistics refer to national average HOUSE prices when really they should refer to average RESIDENTIAL PROPERTY prices? Property has basic types, detached, semi's, bungalows, flats, and they sell differently in different areas? A regularly published breakdown would be more accurate and realistic. People are interested in a particular area and more local info. would be much better enable them to know what was happening in that market and react accordingly.
e.g. London as opposed to say Norfolk.
Just a thought.
Jonnie,
A slow grind you say? Downwards you say?
A chance would be a fine thing. I’m likely to do my back in.
Right - can we PLEASE just get one thing straight.
House prices are NOT 4.2% lower than same time last year! They are actually standing at 97.05% - a reduction of 2.95%. Source: HALIFAX!
Here's the proof.
2011 Q1 UK - £163019
2010 Q1 UK - £167973
The Halifax Index uses the AVERAGE of the three months previous against the same period of the previous year.
Ah, well... I now expect the usual onslaught of militant HPCers calling me a liar or worse... ;o)
Anonymous, funnily enough I refused an instruction on Monday because of the obnoxious idiot factor too.
(Well, that and ridiculous price expectations).
Life's too short to waste signing up for grief from these types.
Jonnie, fair enough, I believe all the major indices (except DCLG, I think) are recording Year-on-Year falls, and have done so since the New Year. But, as you say, it's increasingly looking like the slow-grind down.
make no mistake, i'm still hoping for another 08/09 but I admit it's looking less and less likely. With lender forbearance and continuously low IRs they're keeping a repeat at bay.
Others over on HPC (I don't necessarily subscribe to this theory) reckon the Govt (whichever the colour) recognise a HPC is a sure-fire route to losing power hence...
This is a response yesterday on HPC to another poster opining the slow-grind:
"MW @ 18
I guess I must begrudgingly agree. Certainly Osbourne, Cameron and Shapps were making all the right noises initially but then they were obviously reading from the wrong auto-cue. That particular glitch was soon patched-up, mind. What I don't 'get' is that they had no reason to pander to the FTB tranche once they gained power so why bother in the first place?
In any event, the Localism Bill, MMR debacle and FTB Summit soon put paid to any silly notions that they might favour a crash and recovery in time for the next GE."
Ho hum, time will tell. Either way, we'll all be getting a lot poorer.
Refused an instruction today.
Did my comparables, worked out that the owners price "But I got that as my asking price in 2007 and prices haven't dropped round here".
I reckon the owners' price is a good 30% above reality.
So I thought "I'll save myself some money and time" and refused to take it on the market.
The funny thing is that I don't think prices have dropeed that much, just that he was lucky to get the offer last time and unlucky not to exchange contracts.
Knowing the type of person he is too, I reckon the reason the sale fell through was because of him, not his buyer.
"Life? Don't talk to me about life!" - Marvin the paranoid android
Then, supply & demand, in a year or two they will slowly rise again?
Rant & Sibley,
Would you do your usual and analysis on this please.
It feels like they are saying prices went up a bit and wont be dropping much but im note sure that’s right……………………when is the crash coming based on this it seems we are in for a slow drift (like last time)
I also hope you understand that im not being sarky by asking but no matter how polite or serious I try and be I know I always sound like a bit of a git.
In short – your views please – mine are as before, slow grind, no bubble popping, just a good old fashioned drop in the market like the good old days (when it happened before)
Jonnie
Well, yes, agents ARE hungry for take-ons. If throughput - as you put it - is low, then it becomes a numbers game. The more instructions you have, the more sales you'll make; or to put it another way, you need more properties on the market to make the same number of sales.
Agents seem hungry for take-ons, yet throughput is low for the time of year.
Sold prices seem to be falling but asking prices, don't seem to be, much yet.
The squeeze on household finances seems set to continue.
One thing seems certain, the market will 'iron out' these, and several other, important parameters; as it always will.