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Caveat Mortgagor

April Data Now Available

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Ive just noticed that overnight, the April transaction figures have been made available.

on houseprices?

Still only showing March for me

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Thanks - I prefer houseprices data layout as it is easier to skim read

Viewed this one - nice big house was on for 122k

http://www.nethouseprices.com/index.php?co...&incode=3TF

sold for 113

but 3rd bedroom is not legal, doesn't comply with any regs and the extension on the back seemed to be slipping away.

Edited by SarahBell

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Ive just noticed that overnight, the April transaction figures have been made available.

So, we hear lots of green shoots stories about prices increasing. Whats the real world doing?

I will throw this little snippet in for you.

Ive been monitoring CV5 for 18 months or more. There is an admittedly horrible looking house on quite a pleasant street. Looks like no natural light in kitchen - but that could just be the high quality photographs taken by the EA!

The rightmove link is still active:-

http://www.rightmove.co.uk/property-for-sa...x%3D63%26y%3D17

This property came onto the market for £130k at the end of Jan. This was much cheaper than the asking price of many other similar sized houses in the area.

Nethousesprices says they sold at £115k

http://www.nethouseprices.com/index.php?co...&incode=8BJ

So what does this mean? Well in a city that has been hit as hard as Birmingham for increases in unemployment and short time working, lets assume the buyer has a 15% deposit.

If so, the vendor has found someone with £17,250 to put down. If this person has a mortgage at 3.5 times earnings then this would suggest earning £28k.

That is a lot of deposit to have, and in a city that is struggling the way Coventry is struggling, £28k will be well above average earnings.

Those criteria look like a better than average placed buyer to buy a house that is significantly cheaper than other houses locally! The adjoining street (Glendower Ave) is a busy road, in fact it turns into a rat run in rush hour. The asking prices on this street are all much higher. Many have been on for over 12 months in the region of £156k and the asking prices seem to have stuck! So the asking of £130k seemed much more attractive and help attrct a buyer and achieve a sale in 3 months!

So what effect has this one sale had on the local market. Green shoots of optimism or the despair of knowing that other prices have to fall?

Since this house sold, 3 more houses have come onto the market all on the same side of the street.

Bless them all - priced between £150-177k*. *The £177k house has converted the attic.

Dontcha just love those green shoots?

http://www.rightmove.co.uk/property-for-sa..._includeSSTC=on

Edited by Nick Dastardly

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In my area all cheaper houses have now sold although the pace seems to have really slowed down recently.

I can't believe prices, I have just tried to find a house in the suburbs of London that looks like the house you linked to

House

Just how can you do the analysis on this. I don't understand how anyone could save the deposit required for this. Prices are only about 10% off 2007 at present.

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I take exception to you stating this is a horrible looking house. It's a perfectly good 2nd level house, ideal for a young family.

It is not a typical FTB property. Why would anyone buy this house if they don't have children?

I think the buyer has bought a very cheap family home - well done to them. May well be a canny BTL professional who can rent out profitably!

Dont take exception Steve.

I was merely trying to offer a judgement against other local properties. I did point out that there doesnt apear to be any natural light in the kitchen and tempered this statement that it might just be a trick of the EA's lack of photographic skill.

If you compare this house against the others on the street (see link in original post) they are better presented. It was essential I recognised this fact when using them as a reference for other selling prices.

The fact still remains though. The other houses are overpriced by a significant margin.

Footnote. This house was originally sold in Jan 2004 for £114k. Most indices suggest we are back at May(ish) 04. To get back to Jan 04 would mean avge house prices would have to fall at least another £9k.

So on that score it doesnt look like the buyer has a bad deal. Especially when the one further along the street has recently come on on at £165k (£50k more) looks identical from the outside and is decorated to the same taste!

http://www.rightmove.co.uk/property-for-sa...ncludeSSTC%3Don

Which brings me back to the point I originally tried to make..........

One house sells. Great. Recovereh! Lets put ours on the market! How shall we work out a price? Well theirs was £130K, shall we try for £160k? In that case better add on £5k so the buyer can knock us down!

Edited by Nick Dastardly

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Ive just noticed that overnight, the April transaction figures have been made available.

So, we hear lots of green shoots stories about prices increasing. Whats the real world doing?

I will throw this little snippet in for you.

Ive been monitoring CV5 for 18 months or more. There is an admittedly horrible looking house on quite a pleasant street. Looks like no natural light in kitchen - but that could just be the high quality photographs taken by the EA!

etc etc

I take exception to you stating this is a horrible looking house. It's a perfectly good 2nd level house, ideal for a young family.

It is not a typical FTB property. Why would anyone buy this house if they don't have children?

I think the buyer has bought a very cheap family home - well done to them. May well be a canny BTL professional who can rent out profitably!

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In my area all cheaper houses have now sold although the pace seems to have really slowed down recently.

I can't believe prices, I have just tried to find a house in the suburbs of London that looks like the house you linked to

House

Just how can you do the analysis on this. I don't understand how anyone could save the deposit required for this. Prices are only about 10% off 2007 at present.

Hardly anyone would "save the deposit required for this". A 3 bed semi is not an "average" first time buyer house.

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For some reason I only find for the most part transactions that happened in the first half of april. Very few listed in the second half.

Any chance that transactions going through late in any given month might may be normally missed in the first subsequent update and may only typically appear in the following update?

Maybe that also explains why houseprices.co.uk and zoopla do not have April data in yet?

Edited by Old_Traveller

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Dear Sir/Madam

I noticed this property for sale on rightmove and would like to know why it is being advertised at 30% more than the price of a recently sold similar property.

http://www.nethouseprices.com/index.php?co...&incode=8BJ

Given the appearance of the property I can only assume it is one of the following:

1. The property comes with £30,000 cashback

2. Prices have recently risen 30% in the last month

3. The property is being priced unrealistically

Please let me know which one it is so I can decide whether to view it

Thanks

Edited by wealthy

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In my area all cheaper houses have now sold although the pace seems to have really slowed down recently.

I can't believe prices, I have just tried to find a house in the suburbs of London that looks like the house you linked to

House

Just how can you do the analysis on this. I don't understand how anyone could save the deposit required for this. Prices are only about 10% off 2007 at present.

The sort of person buying this house will probably have bought a London flat pre 2001 and have made some equity on it.

This is not a FTB property, although going to be harder to buy going forward if no equity on first home because it was bought post 2004.

However, assuming a buyer has £100k of equity (a big assumption I know) made on an earlier purchase, based on 3.5x etc still need £100k salary, which seems like a lot for a very ordinary house.

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the 3 bed semi next door to the house I rent sold in Feb 2009. It was valued at £185,000 in 2007 early 2008.

The guy who has just bought it told me he paid £155,000 for it.

It is not on the latest stats for April. That was a £35,000 reduction. edited - oops I meant a £30,000 reduction. :unsure:

Edited by grumpy-old-man-returns

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