The one thing that any market needs for recovery is confidence so these figures are a positive sign. If buyers believe prices will go up and they expect to pay more........then surprisingly sellers are more than willing to put them up to oblige.
However, these same buyers could be the ones that will ultimately see their wages cut, lose their job as a result of the likely belt tightening exercises the new government will demand in order to get to grips with our huge budget deficit. After this cold blast of reality then maybe buyers will be less confident and Rightmove like all estate agents will find it harder to talk the market up. This is certainly the view of former Moneyweek editor Merryn Somerset Webb in the FT.
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Rightmove themselves are under threat. Many estate agents are questioning their value for money (compared with better, cheaper and sometimes free offerings). The market will (is) recovering slowly and property bargain will remain a while - Rightmove is not a bargain and will continue to decline. DR
ReplyDeleteOn the contrary, I use RightMove to evaluate the average asking prices and the average asking rents for a given area.
ReplyDeleteI use zoopla to get the postcode and the z-index of properties I'm interested in. The I use the postcode to get free valuations from mouseprice and sold prices from ourproperty.
This combination works for me. When I made an offer for my 2nd property in over 18 months in Feb 2009, properties had an average asking price of £75k. Now they are £80k, so prices are creeping up.
Haggling is more difficult and many estate agents refused my improved offers and eventually accepted higher ones from other investors. This could be due to a dearth in supply and higher demand.
I offered the full asking price of 80k and was gazumped by 1,000 which was also gazumped. That property now has an offer of 85k and the bidding hasn't stopped. Desireable areas will always be expensive in relative terms.
I'm now negotiating on a property that has a fixed price of 80k and will probably go for 90k. Similar properties in that road sell for over 140k judging by recent sales figures in the last 6 months, so 90k is still a bargain. It's the rent I'm worried about. My criteria of 8% will require rent of £600 for a price of 90k; but average asking rents are £575.