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KerPlunk

7% Drop On 2003 Prices

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Check out this property

RH10 9PY

It’s been sold four times since 2000 and appears to follow the bubble trend very nicely. Showing a peak in late 2003.

Sale Date Price

24/06/05 £99,500

24/10/03 £107,500

05/07/02 £85,000

21/08/00 £62,500

Not the most expensive property in the South East, but then wages in Crawley are pretty poor.

Give it a couple of years B)

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Wow!

Do you know the house? Is there anything that has happened to the house that could explain the price drop?

Or has it genuinely dropped that much!

If that's a genuine drop, and assuming nothing has happened to the structure of the building, that's quite spectacular...! :)

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I don’t know this particular house, but the area (Broadfield) is one of the cheaper ones in Crawley.

Crawley is a very divided town and there is a significant difference in average prices in RH10 and RH11, though the trend is similar. graph

In recent years there has been a lot of BTL activity and I have noticed an increase in properties to let in the cheaper areas.

Presumably once speculators are priced out of more lettable properties they will just buy anything.

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I don’t know this particular house, but the area (Broadfield) is one of the cheaper ones in Crawley.

Crawley is a very divided town and there is a significant difference in average prices in RH10 and RH11, though the trend is similar. graph

In recent years there has been a lot of BTL activity and I have noticed an increase in properties to let in the cheaper areas.

Presumably once speculators are priced out of more lettable properties they will just buy anything.

Shows the boom to the bust trend quite nicely..

In a boom all properties seem to gain value together.. measured on fewer ideals..

I.e a three bed house becomes the same(ish) value as any three bed house.. area and condition are less relevent.. its a seller market and there are fewer choices for the buyer..

But it makes sense to me that when it becomes a buyers market and the choice is there the buyer is more decerning as to location and condition..

so the less desirable houses will struggle to sell..

Currently the price normalisation is going and houses are being judged on their merrits.

A couple of years ago I rented in Crawley and moved into a lovely area on the outskirts.. quiet.. and a great pub round the corner..

The property had stood empty for months.

Even in 2003 there were more rentals there then there were tennants..

So this property would not be the best BTL investment either.

I know Broadfield and its not one of the nicer areas to live..

We shall see more of this as prices begin to drop.

The nicer properties are not dropping as fast, but they are the ones that are selling.

This is some ways goes to indicate Halifaxes figures.

You can buy a property, much cheaper. (on average houses are going for 6% below asking) so this property can be bought for a further few thousand of.

True Price drop to purchase "Could" be closer to 12%

Houses sell for what people are prepared to pay.. What they can afford..

There are no othere factors..

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Geez, that's an interesting graph...

So a house in RH11 costs almost the same NOW as it did over 2 years ago...!!

Good news for anyone who wants to buy there! :)

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It's almost certainly a BTL. ...

Rightmove have another at £119,950 in Kenilworth Close...

one bed.

http://www.rightmove.co.uk/viewdetails-921...pa_n=1&tr_t=buy

so no 13 was probably on at £119,950 as well

i.e. 8% drop from asking to selling price.

If you assume an asking price of £119,950, then selling at £99,500 would be a

drop of 17%

A bit more like it!

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  • 302 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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