Wednesday, Aug 26, 2009
Auction values in July 2009 40% below peak
FT: Recent house price rises may not be sustained
In June, around 30 per cent of properties sold at auction were 35 per cent below their level at September 2007 and in July that proportion rose to 44 per cent.
Seema Shah, property economist, explained: "As the transaction process at auction is so much quicker than selling property using more conventional methods, prices of property sold at auction may give us a better insight than house price indices into the level of prices which is required to clear the market today."
Posted by sybil13 @ 02:44 PM (1211 views) Add Comment
7 Comments
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1. growler said...
Classic Freud in the text !!
"According to Shah, auctions tend to attract properties that owners are finding difficult to sell, are in a poor state of repair or are possessed (sic), and as such the prices tend to be lower than prices in the wider market."
2. mark wadsworth said...
Indeed. Scary noises coming from loft and blood dripping out of taps tends to be a bit of a turn-off.
3. Yellerkat said...
Nice find, Sybil
4. sybil13 said...
Read that wrongly and can't change it was 44% sold for 35% below peak, problem with trying to post with toddlers screaming and tiny baby
5. bystander said...
http://www.youtube.com/watch?v=jThcc5lbfOs
enjoy!!!!!
6. monty032 said...
Can anyone suggest a property auction web site that will tell me all the properties going to auction in my area? Not that I'm going to buy yet. It seems there are dozens of national auctioneers as well as a handful of local ones, and trawling through all their web sites will be a drag when the time comes.
7. mark wadsworth said...
@ Sybil13, comment 3, don't worry about it, they are playing fast and loose with the statistics anyway to the point of meaninglessness:
"... the average price of a residential property achieved that month fell 43 per cent compared with its peak in September 2007.In June, around 30 per cent of properties sold at auction were 35 per cent below their level at September 2007 and in July that proportion rose to 44 per cent."
If general price level fell 43% we might expect 100% of properties to have been sold for at 43% less than their 2007 value, yes? In which case 100% of properties sell for at least 35% less than their 2007 values
... but only 44% sold for at least 35% less, so it might be that 1% of homes sold for 80% less and 43% sold for 35% less and 56% achieved the same price as in 2007. It is more or less impossible to make any sense of the figures, with or without tiny baby.