Monday, Sep 14, 2009
This won't show up in the official statisics
Thisismoney: Auction 'dip suggests house price falls'
First saw this in the Western Daily Press Business page.
Apparently there is now a 30% difference between prices at auction and "open market value" whatever that is.
It all goes to prove a house is only worth what someone is prepared to pay for it.
Posted by tenyearstogetmymoneyback @ 05:03 PM (666 views) Add Comment
7 Comments
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1. titaniccaptain said...
Covered this a few days ago you know where...and one point that was raised is...
Is it like comparing apples for apples.
i.e. Are the homes sold at auction at the same standard as that sold via estate agents.....
And the conclusion was this...
The quality of homes in auction has probably improved due to the larger numbers of foreclosures and distressed sales so this is actually a real sign that we are at some kind of tipping point....
Also it indicates the two contrasting choices made by the cash rich....the one is buying into a market that he or she hopes will recover by using the cash for a deposit on a house in good condition,
The other is the decision to buy a house at auction taking advantage of current drops in the auction market.
2. inbreda said...
it's an indication that the last of the gullible have been sucked in.
There were plenty of BTL entrepreneurs that saw teh fall in prices as a buying opportunity rather than a wake up call. They have now run out of cash/finance and - mortgaged up to the hilt as always - are about to get the full force of deleverage.
3. bellwether said...
This will show up in Land Registry Figures.
4. stillthinking said...
I don't think Land Registry includes auctions in their figures
http://www.economicsuk.com/forum/viewtopic.php?f=1&t=300
5. mark wadsworth said...
I ought to start taking a bigger interest in local auctions, I suppose. Thirty per cent off current asking prices would do me just fine.
6. str 2007 said...
From what I've seen of auctions recently, most houses are poor quality in poor areas (this is how come they've ended up at auction) lets face it if a seller be it bank or anyone else could sell via normal avenues for just 15% more they would never mind nearly 50% more (which would equate to 30% off at auction).
Anything half reasonable fetches what it would anyway sometimes more, but with no opportunity to pull out if there's a problem.
I'm sure there's the odd thing that goes through that's ok but in my experiece very much in the minority.
7. Bidin'matime said...
What beats me is the debate in the opening comments (on the page) about the semantics of '30% off open market' etc. - I wanted to shout at them -
"THEY SOLD FOR 100% OF OPEN MARKET VALUE - THAT'S WHAT AN AUCTION IS ALL ABOUT!"
Time these fools woke up to the reality.