Subscribe Feed (RSS)Rightmove calls the bottom of the market
July 20th, 2009 by Karelia | Filed under Property Market News.Musings of a London Property Buyers Agent
Miles Shipside, the Commerical Director of property portal Rightmove has called the bottom of the market as last winter on the basis that property prices dropped by 2% a month in the second half of last year, whereas house prices have been increasing by 1% a month this Spring and Summer. But that is precisely why the argument over seasonally adjusted vs non-seasonally adjusted house price indices runs and runs. The Spring and early Summer markets are always busy – or at least busier in any kind of reasonable market – 2008 being the exception to the rule.
That is why all the main house price indices issue seasonally adjusted and sometimes non-seasonally adjusted house prices: to take into account the traditional Spring/Summer surge. I will be incredulous if house prices don’t dip again slightly this Winter. Canny sellers will put prices up just now because there has been confidence in the market for at least 2 months – driven predominantly by lots of buyers chasing a small number of properties. The shortage in stock boosts the chances of several people wanting the same property, which is the best way to achieve a good price these days.
According to Rightmove, they are seeing an average of 21,364 new sellers a week at the moment, only 61% of the usual number. According to the Land Registry the first few months of this year saw an average of 31,000 property transactions a month. This is a huge drop from 120,000 in 2007 and the historic norm of around 86,000 a month and we know from anecdotal evidence that there are alot of keen buyers out there.
Shipside might well be right, as we have already said a number of times this year – there were some good bargains this spring in our view. But at the end of the day, there are always bargains around, even in 2007 when prices were at their peak. It’s just a matter of tracking them down! If you don’t have the time, contacts or know-how – consider using effective property buyers agents – like us for example!
Tags: London House Prices, London Property Buyers Agents, property buyers agents, property search agents, relocation agents
