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Haruki Murakami

Impossi-puzzle

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Is it just me, or is this article really badly written. I can't figure out what its commentators mean.

http://www.theargus.co.uk/the_argus/archiv...3/NEWS40ZM.html

Seems fine to me.

Basicaly its saying that the average house prices being reported are due to a disproportionate number of high price houses / mortgages, and I guess from inferrance, less small or FTB properties.

e.g. I sell 2 places, one 100k, one 300k = 200k average

Sell 2 places, one 300k, one 200k = 250k average.

Fantastic - house prices have gone up 25%. Unfortuantely they're different properties though so it's like comparing apples with tractors. :blink:

We're going to have to explect this effect when the volume of transactions is quite low.

Also think that the reported slow falls in national prices are happening because the bottom has fallen out of FTB market....it's going to bite when larger properties start falling significantly though.

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Seems fine to me. 

Basicaly its saying that the average house prices being reported are due to a disproportionate number of high price houses / mortgages, and I guess from inferrance, less small or FTB properties.

e.g. I sell 2 places, one 100k, one 300k = 200k average

Sell 2 places, one 300k, one 200k = 250k average.

Fantastic - house prices have gone up 25%.  Unfortuantely they're different properties though so it's like comparing apples with tractors.  :blink:

We're going to have to explect this effect when the volume of transactions is quite low. 

Also think that the reported slow falls in national prices are happening because the bottom has fallen out of FTB market....it's going to bite when larger properties start falling significantly though.

Very clear.

What I don't understand is the bit in the article about property 'experts' claiming that people are accepting 20K or 30K reductions now "to save themselves having to make a much larger reduction of an estimated 100K at a later date". I've never really understood how that works; it's a market: if the thing is going to be worth 100K less later, then surely it is worth 100K less now (approximately) isn't it? Where's the 70-80K going to be generated in the next few years that makes it worth that much more now?

If I were considering buying a house, and was told "yea, they've dropped the price by 20K now to avoid having to drop it by 100K later", I'd answer "I'd like 100K off now please".

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Guest struthitsruth
Seems fine to me. 

Basicaly its saying that the average house prices being reported are due to a disproportionate number of high price houses / mortgages, and I guess from inferrance, less small or FTB properties.

I know a buyer who has contributed to this effect, when last month they purchased a Cotswold semi-det cottage for £345 with a mortgage of £316 raised from their primary residence. It's for weekends, and wont be rented.

Are they mad ? No, just wealthy, presumably !

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.....What I don't understand is the bit in the article about property 'experts' claiming that people are accepting 20K or 30K reductions now "to save themselves having to make a much larger reduction of an estimated 100K at a later date".............

This is a hell of an admission from that Bexhill ea that current reductions will have to increase by 4 or 5 times "at a later date". Perhaps he was off-guard when he said it or maybe he's trying to talk the market down in the (vain) hope sales volumes will pick up.

Whatever his intention; it sends out a strong message to buyers and sellers as to the future downward direction of prices

Allan Knight, director of Bexhill-based Chris Campbell and Company, said: ........... there were sales being made in the upper end of the market because sellers were being sensible and accepting a £20,000 or £30,000 reduction in price now to save themselves having to make a much larger reduction of an estimated £100,000 at a later date.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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