County house prices still falling
Saturday 13th October 2007, 6:00AM BST.
House prices are continuing to fall in Shropshire with supply and demand both diminishing, according to the latest survey of the UK market by the Royal Institute of Chartered Surveyors (RICS).
House price inflation fell once again in September, with 61 per cent of chartered surveyors in the county reporting a fall in prices – up 13 per cent from August and at the fastest pace since the summer of 2005.
The number reporting a rise fell back to just six per cent, while those reporting no change in prices was 33 per cent, down 13 per cent from the previous month.
Deteriorating confidence is being driven by the fall in demand, with interest rate increases and related financial markets issues depressing surveyors’ outlooks.
New buyer inquiries were down for the fourth consecutive month and at the fastest pace in the survey’s history.
Five interest rate increases since August 2006, and tightening mortgage lending conditions, are putting off would-be buyers.
Stock levels within the region fell sharply for a third month but at a slower pace than previously. This has led to surveyor confidence, in both prices and sales, deteriorating once again.
Jeremy Dell, of JJ Dell and Co in Oswestry and RICS West Midlands spokesman, said: “Once again we have seen a quieter housing market in Shropshire during the past month as the slowdown continues to deepen.
“Confidence has been shaken by the recent political and economic uncertainties following the possible general election talk and Northern Rock crisis.
“Potential buyers remain cautious and activity levels are down during this usually busy early Autumn period. As the money lenders continue to tighten their belts, and borrowing becomes more expensive, this slowdown looks set to continue.”
Nationally, surveyors reported that house price growth remained negative for the second month in succession, with 14.6 per cent more chartered surveyors reporting a fall than a rise in house prices, down from 3.3 reporting in August.
New buyer inquiries declined for the 10th consecutive month and at the fastest pace since March 2003.
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How can house prices be falling when they are still rising
by 6%. Am i missing something or is this another con trick cooked up by estate agents
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The house price crash is finally starting to happen.
At last, hard working people will be able to purchase property. Greedy developers and buy to let agents will be ruined. Good!
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We are now at the top of the market of the biggest house price bubble that the world has ever seen in any country. My advice to buy to let investors and over-leveraged first time buyers on six time salaried mortgages is to get out now while you still can because this crash is going to be very painful indeed.
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John,
Prices did not rise by 6%. Only 6% of estate agents reported any rise. Prices as a whole will have fallen.
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@john, the annual increase in prices reported by financial institutions and the land registry is the growth that *has* occured over the last year not what is occurring. Halifax, home.co.uk and rightmove have all reported drops in September, the FT survey reported only 0.3% but adjusted 3 of the previous four down (and one up) a bit each. I trust the Halifax since they’re a very big lender for domestic mortgages.
The right move reported September drop is quite large, 2.60%. I don’t think that is terribly representative, though, since the 89-95 “crash” was only 10% (ie, one years growth).
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I dont know what i am talking about.
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I welcome it, maybe my two daughters on their well above average wages can afford to buy their own homes just like we were able to years ago, shame on those that want property prices to stay high, and even more shame on speculators and BTL.
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I think you’ve misread it John, It actually says that 6% of estate agents reported a rise in house prices but 61% of them reported a fall in prices and 33% reported no change. So overall prices are falling.
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John, not house prices are rising 6% but the number of chartered surveyors reporting a rise in prices – with 61% of them reporting a fall this makes it very probable that house prices overall are falling.
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Gavin
You clearly don’t get out much. If you want to see housing price bubbles look at New York (specifically Manhattan), Bombay, Hong Kong for high prices. “Biggest house price bubble that the world has ever seen in any country” – I doubt it.
Basically there will be no crash because prices are still relatively affordable. We are not at 11 – 14% interest rates that we saw in the late 80s / early 90s.
There may be a small adjustment over a few months but when the government starts reducing interest rates early next year the market will pick up again. I believe however it will pick up without rampant house price inflation, just a steady market regulated by what people will be willing to pay (until everyone has forgotten once again in a few years time and prices start to shoot up again – it happens every 5 – 10 years).
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