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  • Property-a-holics

    The 10 towns where house prices are still rising

    Hi
    Came across this on my travels:
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    Many parts of the UK have started to see asking prices increase this month in comparison to February, according to Rightmove.co.uk, the property search website. But is this a sign of housing market recovery – or are sellers merely pricing unrealistically? We tracked down estate agents in the 10 locations where prices increased the most to establish the truth.
    North
    1. Whitley Bay, North Tyneside. Increase: 12.2 per cent (4.6 per cent annual fall)
    2. Billingham, Stockton on Tees. Increase: 9.3 per cent (14.5 per cent annual fall)
    Richard Sayer of Rook, Matthews Sayer, an estate agent based in north-east, said: "There are two things to point out about these statisitics. Firstly, there are still very low volumes of sales, with around a third of normal activity, so the figures are based on small samples. Secondly, in the second half of 2007, we were selling a lot of repossessed houses from distressed sellers. Now that Spring has arrived a better quality of stock is coming on to the market. However, asking prices are telling a different story to sale prices at the moment."
    South East
    3. St Leonards-On-Sea, East Sussex. Increase: 6.8 per cent (10.7 per cent annual fall)
    Helen Usher of Stace & Co, an agent in St Leonards-On-Sea, said: "This figure may look hopeful on paper but in reality asking prices are very different from selling prices at the moment. Anyone who has got the finance has the right to make an offer in this market."
    North West
    4. Altrincham, Greater Manchester. Increase: 6.5 per cent (2.3 per cent annual rise)
    A Savills spokesman said: "In the area surrounding Altrincham and Wilmslow sale prices are still falling. If asking prices rise this will simply lead to a greater mismatch between asking and sales price. We are finding that sellers who do not need to sell are sitting tight and not reducing their asking prices, while those who do need to sell are coming to the market with realistic expectations."
    Greater London
    5. Surbiton, Kingston upon Thames. Increase: 5.8 per cent (8.6 per cent annual fall)
    Richard Winter of Savills said: "These results are very surprising. The only rationale we can suggest for rising asking prices is over-pricing by agents in order to win an instruction from a prospective seller by being the highest bidder.
    “We do not believe that values have risen in Surrey and would expect the result of this over-pricing to be a growing gulf between the asking price and the final sale price, with the very real possibility of properties failing to sell. In terms of the annual fall of -8.6%, our estimate would be double this figure."
    South West
    6. Cheltenham, Gloucestershire. Increase: 5.5 per cent (16.3 per cent annual fall)
    Catherine Anderson of Savills in Cheltenham says "Sale prices are certainly not going up. If agents are reporting rises in asking prices this is probably because they are feeling more bullish in an area that has a very seasonal market. Cheltenham is a perfect storm in terms of schools - both state and private - and this is the time families start to consider their location for education, and we are close to the Cotswolds which really come into their own in the spring."
    South East
    7. Southsea, Portsmouth. Increase: 5.4 per cent (18 per cent annual fall)
    Steve Sprake of Pearsons, the estate agent in Southsea, said: "We have seen an uplift in activity since the middle of January. More potential buyers are registering their interest. However, sellers still need to price realistically - buyers are playing the game and making offers below asking price."
    Wales
    8. Newport Town, Pembrokeshire. Increase: 5.2 per cent (17.2 per cent annual fall)
    Chris Davis of Davis & Sons, an estate agent in Newport, said: "We are certainly not seeing any price increases, either asking or sale. Most of the properties I deal with now are repossessions. I recently sold a repossessed five bedroom detached house worth £400,000 for £315,000. A two-bedroom flat worth £119,000 last year is now on at £72,000."
    East Anglia
    9. Great Yarmouth, Norfolk. Increase: 5.2 per cent (10.8 per cent annual fall)
    10. Lowestoft, Suffolk. Increase: 5 per cent (10.4 per cent annual fall)
    Nick Leeming of Propertyfinder.com, the property search website, said: “It is interesting that a lot of coastal towns appear on this list. Seaside resorts were amongst the hardest hit by property price falls at the end of last year, as the demand for second homes dried up. Whilst this may be indication that the market could be starting to bottom out in places such as Norfolk and Suffolk, asking prices may not be matched and buyers will be making offers well below."
    Taken from : MONEY CENTRAL
    Regards
    Wasim

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    Hi Wasim,
    I take this information with a large bucket of salt! It's based on "asking prices", not "actual sold prices" - BIG difference - so it's all pie in the sky IMHO. We have a lot more pain to go through.
    On a positive note, articles like this might help restore confidence in buying property and encourage nervous buyers back into the market, which can only be a good thing. Confidence in property will be the fertilizer for the "green shoots" of a market recovery.
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    Govt Figures on UK House Prices Show Inaccuracies of other Indexes
    By Liam Bailey 2009-04-16 08:25:33
    The latest government figures on UK house prices have shown just how inaccurate some of the other indexes have become due to the low transaction volumes. In fact so inaccurate that they currently should not be used as a measure for what the UK housing market is doing, and will do in the near future.
    According to the latest figures by the Department of Communities and Local Government (DCLG) house prices fell 12.3% between Q1 2008 and Q1 2009, this accelerated from 11.5% on the year-on-year figure in the three months up to January. The government also showed acceleration in the tri-monthly rate of decline: Dec-Feb prices fell by 4.8%, compared to a 4.3% decline Sep-Nov.
    This is in stark contrast to the recent indexes by Halifax and FT, which showed the annual rate of decline slowing. And certainly in stark contrast to the Nationwide figures which showed a monthly rise in UK house prices, though that was for March and has all but been ruled out as a statistical flaw.
    This just goes to show that the volume of transactions has gotten so low that monthly and even yearly data from some indexes has become highly inaccurate, and we should no longer use them to fuel our believes on what the UK housing market will do. Instead we should focus on transaction volumes to indicate when the market has bottomed, if transaction volumes jump upward massively and stay up, then it is highly likely that the market has bottomed.
    I know we like to keep track of what prices are doing, for this purpose I suggest the Land Registry index for England and Wales, and government figures for the UK. Also, Hometrack.co.uk provides an excellent overview of the UK housing market as a whole and highly accurate date on prices by postcode. The latter is a service also on offer at Zoopla.co.uk.
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    Speaking as someone living in East Anglia, I would comment that Great Yarmouth has a new outer harbour being built which will bring in a lot of new work. Lowestoft is developing a successful green energy industry with wind turbines. These are possible reasons why these particular towns are doing well.
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    Tessa Shepperon Landlord Law | Landlord Law Blog |