Estate agent Knight Frank’s ‘house price sentiment index’ shows that most households believe property prices have fallen for 15 months in a row.
The ‘this is what people really think of house prices’ survey, in conjunction with financial services company Markit, looks at how consumers perceive the value of property.
The latest index, which involved a survey of 1,500 households, shows that they believe house prices have now fallen every month since July 2010, with 21% believing that the value of their home has fallen over the last month.
However, there are some expectations among consumers that prices will rise over the next year. Households earning between £23,000 and £34,500 expect prices to fall, whilst those on higher and lower incomes expect prices to rise.
Chris Williamson, chief economist at Markit, said: “Our index adds a unique layer of information on the UK housing market, revealing what people think is happening to the value of their properties right now and in the future.
“This information is useful for many reasons. The buoyancy of the outlook for house prices in early-2010, for example, helped fuel a revival in consumer spending as home owners perceived the value of what is typically their largest asset to be on the rise.
“The reverse occurred earlier this year, as worries about the economy and widespread job insecurity led to a downturn in views on house prices. Consumer spending moved into decline as a result. The belief that house prices will fall also meant fewer people put their properties on to the market, resulting in low transaction numbers.
“The uptick in the outlook for house prices in August therefore provides a glimmer of light that prices may start to rise again, presumably supported by increasing signs that interest rates will stay low for longer, and that more properties may come on to the market.”
The sentiment index was launched in February 2009 and was jointly compiled by YouGov and Markit until last September when Knight Frank took over joint publication.
.png)
%20A%20property%20tale%20for%20our%20times.png)
Comments
Simon - I suggest you take more water with it... ;o)
Vendors dont owe EA's a living obviously but that doesnt make them experts. what ever you think of EA's it doesnt matter they no at the end of the day what your house is worth they have seen and experienced similar sales over and over aga
Most properties are over priced.. fact! be realistic or just continue to hold up the the housing ladder. simples
F Fortescue-Smythe;
"...lay it on the line to sellers that they need to price aggressively - just a touch ahead of the falling market ...as we shift property generally quite quickly (and often at close to what we advertise it at"
Does RR proof-read all your posts prior to hitting the 'submit' button perchance?
So - you only take on instructions at giveaway prices - and THEN you achieve offers under - and seem proud of the fact to boot!
The OFT are looking at unfair 'valuation' practices - you would do well to remember that.
Don't worry - I am sure that Gloria "I can sell a Ferrari for ten grand but not for full price" Andaluza will post, defending your methods to the hilt.
Here's an idea - why don't you two set up shop together?
Ray you have this back to front (as usual), setting up an Aunt Sally to throw bricks at.
No-one is asserting any god-given right of EAs to a living. But are you seriously suggesting that indulging fantasy pricing, either proposed by an EA looking for an instruction, or demanded by a self-deluding seller, helps anyone at all? (Other than providing a threadbare comfort blanket to despairing BTLers? Oh and selling the very odd property at over the odds, I mean there are still a small number of total suckers out there with cash to burn).
My take on this is that I lay it on the line to sellers that they need to price aggressively - just a touch ahead of the falling market - if they genuinely want to sell in these conditions. This is generally to achieve some life purpose like up or downsizing, or moving location to be near work or family. (Or sometimes, just getting out from having been in over their heads).
'Pretend' would-be sellers who are only going on the market to realise paper/imaginary gains based on 2007 valuations, or who 'need' to raise these sorts of valuations because they have mewed it all away, I just send packing. They can suck the life blood out of one of my competitors: it's just not worth the hassle.
This works for me and is working for the customers I do take on as we shift property generally quite quickly (and often at close to what we advertise it at) while our competitors either don't, or typically only do after much price dropping to catch up with the market, after they have had their hopes raised then dashed.
Far rather a small number of hot prospects than a window full of stale, overpriced zombie properties.
EA's and others should remember that they do not OWN the product they are selling, they can only advise the owner on the price, not fix it. If the owner does not want to offer the product at that price, so be it, they have no god given right to pressurise him to reduce - whatever the current market. Vendors do not owe agents a living and the level of transactions they desire to survive. I would advise all owners to sit tight if there is no pressing need to sell, not incur the considerable other costs involved and get on with their life.
More dire news for EA suffering from crippling low transactions volume. As one of their number try yet again to stoke the fuels of vendor delusion.
Most EA’s desperately need more volume. Yet simultaneously are trying to keep prices high and prevent higher volumes. I suppose we just need let them destroy their own industry I guess.
Why are rising house prices a good thing when they are already highly inflated?
Surely a return to normal prices is what the economy needs.
You can only fool some of the people all of the time or all of the people some of the time..................
I rest my case
I can't quite get the logic, as explained, here.
If more properties for sale may come onto the market, how might this (presumably) improve the outlook for house prices?