Quick Move Blog
Monday, 29 October 2007
The latest Rightmove survey suggests that the introduction of HIPs for 3 bedroom houses distorted the housing market in October and masked a standstill in prices.
On a quarterly basis house price inflation slowed from 1.5% to 0.5%, the lowest quarterly rise since winter 2005.
The tougher market conditions also mean that houses are taking longer to sell, with the average time on market the longest for 5 years.
These figures were distorted by a 65% jump in the weekly average of 3 bed homes, due to the introduction of HIPs. This led to 'wild' fluctuations in supply and average asking prices, which rose 2.7%.
According to Rightmove, the only way for buyer affordability to improve is for sellers to reduce asking prices, a considerable change of mindset from the past 10 years: "Sellers who need a quick sale will have to respond by pricing competitively."
Annual house price inflation in England and Wales fell to 4.4% in October, its slowest level in more than a year, according to the latest Hometrack report.
The report confirms general acceptance that the house market is cooling down with Hometrack saying that a combination of higher interest rates and weaker confidence had impacted on the market.
House prices fell by 0.1 percent in October, the first monthly decline in two years, following September's flat results - however, these monthly figures do not account for seasonal factors.
The number of potential homebuyers registering with agents also fell by 6.4 percent on the month, the largest fall in buyers since Hometrack began their records in 2001.
The number of sales agreed fell 4.8 percent in October, while the time taking to sell a property grew with the average time spent on the market rising to 7.4 weeks from 6.9 weeks in the September survey, the longest since February 2006.
Hometrack also suggested that one of the growth areas of house prices - London - is also showing signs of cooling off, recording the biggest price falls in October of between 0.3 and 0.5 percent.
Hometrack's Director of Research Richard Donnell said sales were set to weaken further in the coming months, despite a lack of supply providing support to prices."A further decline in sales volumes is inevitable over the months ahead as buyers, the majority of whom do not need to move, wait until the outlook for the market and interest rates become clearer," he said.
Clearly this slowdown in the market is impacting sellers. Crucial to our clients is the fall in the number of people looking to buy houses and the increase in the average time taken to sell houses. With fewer people looking to buy, it will be more difficult to sell your house quickly, particularly at the price you're looking for.
This is where Quick Move Now can help - we will buy your house, for cash, and often with 7 days. So if you need to move house quickly, call Quick Move Now today on 0845 068 3366.
The number of new mortgages being given to house buyers fell by 20% in September from a year earlier, according to Bank of England figures.
Last month, 102,000 new mortgages were approved for house buyers, 25,000 fewer than in September 2006, and 6,000 less than in August, the Bank said.
The figures add to growing evidence that the property market is cooling rapidly. Recent surveys have shown that price growth is slowing down in many areas. Last week the Land Registry reported that annual property price inflation had dropped in September to 8.7% from 9.4% in August.
Thursday, 18 October 2007
The IMF has warned that Britain’s housing market could be heading for a slump, with the credit crisis likely to have a “sizeable impact” on property prices.
House prices in the UK have risen by up to 50 per cent more than they should have done over the past decade, leaving them dramatically overvalued, according to the International Monetary Fund’s calculations.
As a result, falling house prices are now a major threat for the UK’s economy, the IMF said.
It said there was evidence to suggest that house prices in the UK were more overvalued than in America, which is currently experiencing its worst housing slump since the Great Depression of the 1930s.
The crisis there has been driven by problems in the “sub-prime” mortgage market for people with poor credit histories, which in turn has triggered the wider global “credit crunch”.
House prices have continued to climb strongly this year, but the level of growth has slowed markedly in recent months.
The IMF’s warning will add further pressure on the Bank of England to cut interest rates following five increases since last summer.
With families facing the biggest squeeze on their disposable income in at least a decade, the prospects of a house price “correction” – either below inflationary increases or actual price falls – will cause major concern to homeowners.
The IMF said that since 1997, house prices in the UK had risen by 50 per cent more than its economic model for predicting house price growth suggested they should have.
Charles Collyns, the IMF’s expert on Europe, said some of the house price increases in Britain could be explained by so-called “economic fundamentals” such as immigration and the shortage of new homes being built. However, he added: “We are certainly concerned that the recent increases in prices have gone beyond those fundamentals.”
The IMF's analysis "suggests that the extent of house price overvaluation may be considerably larger in some national markets in Europe than in the United States, and there would clearly be a sizable impact on the housing markets in the event of a widespread credit crunch.”
Yolande Barnes, head of research at property group Savills, said: “The IMF is writing in large letters what we all were all warned about by the Northern Rock debacle. If credit is less readily available, asset prices will fall. And clearly property is chief amongst those.”
Simon Rubinsohn, chief economist at the Royal Institute of Charteres Surveyors said it was unlikely the UK would experience a price crash, but said: “The IMF is logical when it says our house prices are overvalued. We all know that they are expensive, especially in London.”
He predicts house price growth in the UK to fall from an expected 10 or 11 per cent this year, to a zero next year – a fall in real terms.
The total number of mortgage products available has fallen by over 40% in the last three months according to new research by Moneyfacts.
Most mortgages have vanished due to sub prime mortgages being withdrawn from sale. Bad credit mortgages was once the fastest growing mortgage market, but is now suffering the biggest decline due to the recent credit crunch.
In general the higher risk products have been wihdrawn by mortgage lenders, with many existing products having more conservative lending limits applied.The maximum loan-to-values ("LTV") have fallen, self-certification products have seen a decline, and borrowers are now less likely to find a bad credit mortgage lender that will accept extra heavy or unlimited adverse credit.
For customers with good credit ratings the residential mortgage market has witnessed a 16% drop in the number of mortgage products available for sale - unusual given the mortgage market is fairly static at the moment.
Julia Harris, Mortgage Expert at Moneyfacts, said: "Clearly an overall 40 per cent reduction in products available will mean less choice for borrowers, particularly for those with bad credit, irregular incomes or those looking for high LTV products."
With mortgages harder to come by, the number of buyers in the housing market is likely to fall, meaning home owners will find it more difficult to sell their houses quickly. Less demand is also likely to lead to a fall in prices. If you dinf yourslef in this situation, please give Quick Move Now a call on 0800 068 3366 - we can help you.
Thursday, 11 October 2007
The number of properties requiring a Home Information Pack (HIP) coming onto the market in September has continued to fall across England and Wales compared with the same month in 2006, according to a new survey bythe Royal Insitiute of Chartered Surveyors (RICS).
73% of respondents indicated a decrease in three bedroom or larger properties coming onto the market, with new instructions falling by 37%.
RICS spokesperson Jeremy Leaf said: "Although they are not the only factor, HIPs are continuing to have a detrimental impact on the housing market, in spite of assurances from the Housing Minister that this would not happen. "With fewer family properties available for sale in September, those buyers looking to upgrade to larger properties are finding it increasingly difficult to choose from declining supply."
The latest report from the Royal Institution of Chartered Surveyors (RICS) shows house prices continuing to fall.
Its latest survey says UK house prices in September generally fell again, with more of its members reporting a fall in prices locally than an increase.
It said enquiries from new buyers had fallen for the tenth month in a row.
RICS blamed the downward trend on a combination of factors, such as higher interest rates and lenders tightening their lending criteria.
RICS said that the downturn seems to be severest in East Anglia, and the West and East Midlands, though prices are still going up in Scotland and London.
With enquiries from buyers still falling, it is getting more difficult for people to sell their houses - despite cutting asking prices, the average length of time to sell a house is increasing.
If you need to guarantee a quick house sale or your house has been on the market for longer than you hoped, consider using a professional house buying company, such as Quick Move Now.
As the largest independent provider of home sale solutions in the UK, we understand the problems that can crop up when trying to sell your home.
What we do is simple – we help people who need a fast and easy house sale with the certainty that only a professional homebuyer can provide. Call us today on 0800 068 3366 and sell your house quickly.
Wednesday, 10 October 2007
A report in The Sunday Telegraph, shows many sellers having to slash prices by 20% to encourage interest in their property. Rising prices, interest rate rises, HIPs and the Northern Rock credit crunch have all hit confidence and are contributing to falling house prices.
The paper contacted estate agents throughout the UK and found that despite dramtic reductions to asking prices, properties in many parts of the country are proving difficult to sell. A Nottingham based agent said none of the city's agents could remember a time when so few sales were completing, despite on-going price reductions.
The picture was the same in the Harborne area of Birmingham, with many properties unsold after 6 months. In Bristol, Ocean Estate Agents commented: "This time last year, we had 80 properties to sell and now we have 240...A house that might have sold at £290,000 will be put on the market this year at £250,000 and will still struggle to sell."
The reality is that many properties are being valued at considerably less that they were a year ago and even then, people are finding it difficult to sell.
So, when faced with these market conditions, and you need to sell your house quickly, what can you do? Well, this is where Quick Move Now can help.
What we do is simple – we help people who need a fast and easy house sale with the certainty that only a professional homebuyer can provide. As the UK's leading professional housebuyer, we have the funds available to often complete deals within 7 days.
What's the catch? There isn't one. We pay up to 90% of the appraised value of your home based on the opinions of 3 independent local Estate Agents. There are no charges to obtain an offer on your home, and we can even pay up to £500 towards your solicitor's fees.
In a housing market where houses are not selling despite estate agents discounting prices by over 20%, Quick Move Now could be your best option for a quick and easy house sale - call us now on 0800 068 3366.
Friday, 5 October 2007
The income first-time buyers need to get on the housing ladder has reached unprecedented levels
A new report from Hometrack shows the ratio of house price to income has nearly doubled in the past decade, so that an average house in Britain now costs more than five times the average first-time buyer's income.
The average cost of a home in England and Wales is £176,300, according to Hometrack's figures.
This ratio of house price to income is far higher than at the peak of the last price boom in 1990.
Despite a long period of low interest rates, mortgage costs as a percentage of income - seen by some as a fairer measure of affordability - have also virtually doubled over the same period to more than 32%.
Thursday, 4 October 2007
A report by the Halifax today shows that house prices fell in September by 0.6%. The reduces the annual house price inflation rate to 10.7% from 11.4% in August.
The Halifax calculates that the average residential property across the UK now costs £198,500.
The lender said the fact that prices had been rising and falling by small amounts each month this year reflected a subdued market.
"Overall, prices in the third quarter were 0.9% higher than in the previous quarter," said the Halifax's chief economist, Martin Ellis.
"This compares with increases of 2.3% in 2007 Q2 and 3.0% in 2007 Q1, marking a continuing steady downward trend in the rate of house price growth since the end of 2006."
The Halifax's research is now pointing in the same direction as other market surveys, such as those from its rival lender the Nationwide and from the Royal Institution of Chartered Surveyors.
Monday, 1 October 2007
The property market is going through a clear slowdown, according to figures from the Bank of England (BoE).
The number of mortgages approved for house purchase fell in August to 109,000, down from 120,000 a year ago. The increase in net mortgage lending in August was also down by 11% on the same month last year.
The BoE's analysis makes it clear that mortgage lending has been slowing down since the start of the year, as higher interest rates have taken effect.
The number of new mortgages approved for house buying - a good indicator of future trends in the property market - touched a recent peak of 128,000 in November 2006.
Although the figures are erratic from month to month, the trend since then has been downward, with the monthly average for the past six months now standing at 112,000.
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