FrequentFlyer

I just read with some disbelief that house prices are rising again in the UK!! (see yahoo news 15 June 2010).

How can this be when everyone is allegedly losing their jobs, banks are not lending unless one has a huge deposit, Sterling is lowest for decads and the economy is in shreds. Who are these mystery buyers?

Even in NZ where the economy is recovering well with new jobs and pay rises on the horizon again and a dollar stronger than it has ever been, house prices have fallen for the past two consecutive months.

Oh for a crystal ball !!!!

Any real time indications of housing market in the UK welcomed. I am moving back later this year.

dunroving

I read the housing sections every week and although I am not an expert, I can tell you the following:

Patterns are regional - some areas are going up, some down.

Sales volume is low in many areas, so the data are quite volatile.

Published data are often quite out of date.

Increases in some areas over the past 12 months are partly due to the historically low interest rates, the slightly more optimistic economic data, foreign buyers seeing a good opportunity (in places like London, especially). Also, a shortage of available property (cost of HIPS) has pushed prices up.

The future? Who knows, but indicators are that prices will not continue to rise and are likely to go down for a while, due to more people putting their houses on the market (no more HIPS to pay for) and therefore more of a buyers' market.

I don't think there will be another housing boom anytime soon. If anything, prices will remain stable or even drop oover the next 18 months.

I'm no expert, but then remember that most of the experts have been getting it wrong since about 2005.

Mummy in the foothills

You can see what houses are dropping on www.propertysnake.com just type in your postcode.

jmh

Oh for a crystal ball indeed.

I read the NZ Herald online and I noticed a general talking up of the economy even when the recession hit. Of course in the UK the media is constantly talking down, so maybe it only appears that much worse. I haven't looked at the data so don't know if that is true though.

My own personal opinion, based on no intelligent knowledge (so probably quite accurate) is that the market will stagnate for the coming year but that there will be slow growth from 2012 in the Southeast at least. Not sure about the rest of the country though.

Anyone got any thoughts on whether the Olympics will have an effect on the buying or letting market? I'm hoping to move to NZ early 2012 and I am trying to decide what to do with my house.

dunroving

How close is your house to the Olympic venues? If it's close/on public transport routes, you could make a packet renting it out during the Olympics ...

jmh

Well, not that close but still in southwest London. My brother lives in Bow in East London (i.e. not far) and he made some comment about renting HIS place, so I could let mine to him and make money out of him!!

Oh wait a minute, my place is on the train line to Wimbledon. Any games there? I better start looking into this.

dunroving

Seriously, I think there is a market for this. I was studying in Georgia during the '96 Olympics and some people made a mint by moving out/going on vacation for a month and renting out their houses to folks attending the Olympics. Depending on the kind of property, the best rentals can be had from corporate organisations (you know, executive perks - attend the Olympics for a week) and organizations associated with the Olympics themselves (e.g., media organizations), from what I remember. The place has to be pretty spepcial to merit those kinds of clients/tenants, but you never know. Worth an online punt to see if there's a market.