Rightmove Report 0.3% Increase in House Prices for January
Good news for the UK housing market was reported this morning by the property website Rightmove. It’s monthly house price index showed a month on month increase of asking prices since mid December of 0.3%, with an increase since this time last year of 0.4%.
Although only a minor increase, this news represents a possible change in direction for the market which has seen a steady decline following the end of the post-bust housing bubble. November and December of last year saw drops of 3.2 and 3.0% respectively. The increases are thought to be reflective of a significant drop in the number of new properties coming on the market. Some observers are suggesting it is too early to tell if the market will begin to bounce back, however, suggesting that the lack of access to credit will continue to constrict demand.
Commenting on the report, Rightmove director Miles Shipside said "With the number of new sellers at a two-year low, prices are being underpinned by muted new supply just managing to fight off the downsides of lender reticence. However, in less popular locations, the smokescreen of New Year price optimism is temporarily masking the collateral damage that the new era of tighter credit will continue to inflict."
I don't agree that "this piece of news is pointless", in my opinion it is showing that it is vendor's market. Limited number of properties on the market allows vendors to ask higher prices.My friend is looking for a property in London and belive me, the choice is limited. If anything decent comes on to the market, it is sold very quickly and sellers are not willing to negotiate prices as they know there is no competition.
This piece of news is pointless. Asking prices are meaningless. Sellers generally are so ill informed they do just what the agents tell them to. The real data anyone should look at it if they want to know about the direction of the market is the land registry data off its website. the price actually paid is the real genuine measure of the property market.
why is this good news? houses become more unaffordable! are rising food and fuel prices also a good thing?