Rightmove forecasts 2% house price rise in 2013

by Property118.com News Team

0:01 AM, 17th December 2012
About 6 years ago

Rightmove forecasts 2% house price rise in 2013

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Rightmove forecasts 2% house price rise in 2013

Rightmove Rental Market ForecastsRightmove have released their December House Price Index and along with that have made some bold predictions for property prices in 2013.

What are your predictions on house prices for 2013 we wonder? Why not leave a comment below this article and this time next year we will see who got the closest.

You can download a PDF copy of the Rightmove House Price Index for 2012 by completing the short form below. In the meantime, the following is a summary of their findings and predictions.

  • New sellers take heed of winter slowdown and chop their asking prices by an average of £7,772 (-3.3%)
  • In spite of the largest monthly fall ever recorded, new seller asking prices are still up by 1.4% in 2012
  • Rightmove predicts the slow recovery will continue through 2013
  • Rightmove forecasts a national 2% rise in 2013 assisted by greater competition among lenders to lend.  However, with inflation running at more than 2%, housing is becoming cheaper in real terms
  • New seller shortage will continue to underpin prices, with no significant increase to the circa 1.2 million new listings seen in each of the last three years
  • Signs of slight improvement in the market, with average gap between final asking price and sold price narrowing to 3.7% in 2012 compared to 4.9% in 2009, 2010 and 2011


Comments

9:36 AM, 17th December 2012
About 6 years ago

Your article removes the biggest headline of this story, that it is the biggest fall in asking prices since Rightmove figures began.

House prices will continue to fall as they are still very overvalued and people are getting poorer with low/frozen wage growth and high inflation. The simple maths don't support growth. This is more spring bounce ramping like RICS this week, The property companies are starting early ramping this year so they must be worried.

Mark Alexander

9:47 AM, 17th December 2012
About 6 years ago

A 2% increase may well be less than inflation, thus making house prices more affordable. However, if a portfolio is geared at say 80% LTV the return based on a percentage of capital invested into the portfolio is 10%. That's a lot better than can be achieved in a bank or building society and doesn't even take into account any rental properties. I love property investment 🙂

Jonathan Clarke

1:40 AM, 21st December 2012
About 6 years ago

I think 2% maybe about right so I will go for 1.9% as my prediction.

And yes Mark absolutely right - gearing and rental income must be taken into account when comparing BTL property investing with other asset classes and/or inflation

I get irritated when I see standard corporate graphs with ascending lines running roughly parallel comparing property with shares / inflation / gold for example but taking no account whatsoever for gearing and rental income. If its just a main ressi then fair enough but they should include an additional line for property at 80% gearing at 10% gross yield to perhaps compare like for like .

That line would stand out from the crowd over time very very favourably I believe in comparison - even in the tough trading conditions we have experienced over the last 5 years.

You can work magic with property investing that you simply cant do with other stuff.................


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