http://www.guardian.co.uk/business/story/0,3604,1484586,00.html
Property sales have fallen to their lowest for a decade and will continue to slide for the rest of the year, according to property website Rightmove.FYI: Rightmove is the UK equivalent of realestate.com.au
http://www.rightmove.co.uk/More here: http://news.independent.co.uk/business/news/story.jsp?story=638689
The UK property boom has been at least as extreme as ours (if not more so) and maybe crashing first.
Rightmove urged sellers and estate agents to drop their prices to help to improve affordability and market conditions[biggrin]
Yeah the sellers will drop prices to help those who can’t afford them
[biggrin]That’s one of the funniest and strangely the most left wing solution I’ve heard. How about the government step in and play the sovereign right card to take posession of the houses and sell them at a socially responsible price. They’d of course have to block the sale to anyone who could have afforded the house at the original price. Then when the new buyers turn around next year and sell for a staggering profit the government could step in again and cap the house price to maintain affordability… and so it goes…
Open markets, like the property market largely is, are quite good at self regulation. If the owners are unwilling to drop prices then that means there is demand enough to retain them. When the house prices no longer attract any buyers they will drop. Those who must sell due to other pressure will drop prices. I mean it’s not rocket science, it’s psychology [biggrin]
A wise man once said “everything is for sale at the right price”. It might be more reasonable for everyone to list that price. That would jump up the number of ads and would make the median house price rise too.
Quite a silly article, except for the stamp duty short fall to be experienced. That is a genuine problem when govs plan expected taxes in their budget during boom times.
Please read this from today’s paper
Perth property prices on the way up again -16 May 2005KELLY GIRDLESTONE
Perth’s property market has entered its second growth cycle, skipping the traditional downturn to post stronger than expected March quarter results.
While NSW, Queensland and Victoria are struggling to achieve positive growth in prices after their much stronger booms, Perth is surging ahead.
The latest Real Estate Institute of WA housing statistics revealed the Perth median house price rose 3.4 per cent to $284,500 in the March quarter. It was an annual increase of 13.3 per cent.
The report also showed WA’s booming regional centres, with Port Hedland and Bunbury leading, were outstripping Perth.
REIWA president Greg Rossen said after a quiet second half of 2004, the housing market in WA rebounded strongly.
He said WA’s powerful economy and a higher population growth rate were continuing to reflect positively.
“We believe we are in another growth phase,” Mr Rossen said. “We have had a corrective phase over the past 12 months with sustained growth and it did dip by $500 one quarter.
“The typical downturn is at 18 to 22 months after the peak of activity, which was June 2003. Anybody charting the market will see evidence we have had a limited downturn and are now in a new growth phase.”
A strong economy, more migration to WA and a low vacancy rate of 2.6 per cent was also putting pressure on rental prices.
Both unit and land prices enjoyed healthy growth in the quarter, rising 3.8 per cent and 2.6 per cent respectively.
Housing and land shortages in Port Hedland contributed to a massive 77.9 per cent growth in the three months to March.
Mr Rossen said Port Hedland was also an unusual market, affected by itinerant workers and the wide variety of housing stock sold in each quarter.
Bunbury’s increase in prices of 36.3 per cent in the year to March reflected a catching up to the other South-West markets, strong investment, low vacancy rates and waterside location.
Yeah the sellers will drop prices to help those who can’t afford themWhere did it say that? Sellers will drop prices if they can’t sell their property (and they have some pressing need to sell).
Perth is surging ahead.I think everyone is aware that the property market is still very strong.
I think everyone is aware that the property market is still very strong.Sorry that should have read:
I think everyone is aware that the Perth property market is still very strong.would be interested to know if anyone is using wraps in WA, especially outside of Perth.
Demand for SE qld property that relies heavily on international (especially uk) migration will slow markably.
If they cannot sell in the uk nor achieve prices near peak prices then the migration numbers will slow.
Perth/WA appears to be still going ok, but as areas outside capitals and central areas take longer for the slowdown to reach.
UK economy too big and fast, prices are slowing despite a massive housing shortage in the South East. Same dynamics as anywhere the bigger cities and go ahead towns have experienced the biggest capital growth
another interesting point Wales Population 4 million had both the fastest and slowest proeprty growth regions in all of the UK
Yields still terrible here, best way of achieving success in the UK is renovation projects and even thse have to be chosen very carefully
when the going gets weird the weird turn pro
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