Anecdote: Peak District

[aussieboy]

Briefly, relative of mine put their 3 bed Hope Valley semi (modern, next to ex-council houses) on the market

at a price I thought was ridiculous, breaking the street record by 30% (no sales there for a couple of years, though). Asking price was 5x what was paid in 88, 3x its 98 valuation.

Three weeks later, and a bit of negotiating, sold for 97% of asking. And this is opposite a building site where they are just laying the sewers with much attendant noise and mess.

I'm surprised... I thought they were being greedy (and perhaps they were).

[Si1]

Briefly, relative of mine put their 3 bed Hope Valley semi (modern, next to ex-council houses) on the market

at a price I thought was ridiculous, breaking the street record by 30% (no sales there for a couple of years, though). Asking price was 5x what was paid in 88, 3x its 98 valuation.

Three weeks later, and a bit of negotiating, sold for 97% of asking. And this is opposite a building site where they are just laying the sewers with much attendant noise and mess.

I'm surprised... I thought they were being greedy (and perhaps they were).

against real GDP it would have gone up to 170% of original value, 500% is actuallty 250% after inflation of 2x over the period.

Crazy, 250 down to 170 is a 32 % fall in real terms to regain the long term GDP relationship

Edited November 15, 2010 by Si1

[Si1]

have they exchanged yet or is it SSTC ?

[aussieboy]

have they exchanged yet or is it SSTC ?

SSTC so who knows. They haven't bought anywhere yet and aren't in a hurry so if it falls through it falls through.

I was expecting them to be offered ~15-20% less than they achieved. 12/06 was the last sale at ~30% less, another in 2002 at half the (probable) 2010 sale price). Very surprised by the phone call last night - I have a stake in the house so was hoping for a lower price (for a number of complicated reasons).

[MinceBalls]

s'not sold yet though.

SSTC so who knows. They haven't bought anywhere yet and aren't in a hurry so if it falls through it falls through.

I was expecting them to be offered ~15-20% less than they achieved. 12/06 was the last sale at ~30% less, another in 2002 at half the (probable) 2010 sale price). Very surprised by the phone call last night - I have a stake in the house so was hoping for a lower price (for a number of complicated reasons).

[aussieboy]

s'not sold yet though.

Yes, yes, yes...

[Si1]

SSTC so who knows. They haven't bought anywhere yet and aren't in a hurry so if it falls through it falls through.

I was expecting them to be offered ~15-20% less than they achieved. 12/06 was the last sale at ~30% less, another in 2002 at half the (probable) 2010 sale price). Very surprised by the phone call last night - I have a stake in the house so was hoping for a lower price (for a number of complicated reasons).

my feeling, from reading HPC, is that people are offering on houses and then unable to complete on the mortgage, please update us to let us know what happens

[aussieboy]

my feeling, from reading HPC, is that people are offering on houses and then unable to complete on the mortgage, please update us to let us know what happens

Shall do.

Hopefully, matters won't progress: I'm going to have to buy some *******'s unearned equity out at some point and this inflated price is giving me palpitations.

Fingers uncrossed, eh?

[Si1]

Says it all, its a lovely part of the countryside and I'm sure many people would like to live there.

am not sure it says much - this example has only bubbled to the degree the whole market has, it is not exceptional

the Peak district is of course lovely - the most important thing is the access - in between Birmingham, London, Sheffield, Manchester, Leeds. It is the only really hilly national park accesiblle in several hours' drive from parts of the south, but that premium was possibly already built in to the basic price

[aussieboy]

am not sure it says much - this example has only bubbled to the degree the whole market has, it is not exceptional

the Peak district is of course lovely - the most important thing is the access - in between Birmingham, London, Sheffield, Manchester, Leeds. It is the only really hilly national park accesiblle in several hours' drive from parts of the south, but that premium was possibly already built in to the basic price

Yes - a similar house in a nice bit of Sheffield (S17 / S10 -not Crookes!) would probably cost the same.

And bear in mind this is an 80s 3 bed semi in one of the less fashionable villages, not a Castleton cottage. You wouldn't, for example, book a weekend B&B stay there.

Great views though (although as I say there's a load of social housing being built in the field opposite).

[tahoma]

Says it all, its a lovely part of the countryside and I'm sure many people would like to live there.

Sure is, I can see the Hope valley out the window. One house near here sold in 2 days, another has been on the market for a year.

They are worth what someone is willing and able to pay folks.

[cakehead]

Hope valley is prime commuter territory, a genuine mountain wilderness on your doorstep plus a train line into central Manchester and Sheffield in minutes. Some of the stickiest prices in the country and when the market's hot, almost unobtainable. And no, I don't live there but I've looked on and off for twenty years. Not surprised at the quick sale, it's where every Manc who's made a buck has their first or second home.

[Saver]

Briefly, relative of mine put their 3 bed Hope Valley semi (modern, next to ex-council houses) on the market

at a price I thought was ridiculous, breaking the street record by 30% (no sales there for a couple of years, though). Asking price was 5x what was paid in 88, 3x its 98 valuation.

Three weeks later, and a bit of negotiating, sold for 97% of asking. And this is opposite a building site where they are just laying the sewers with much attendant noise and mess.

I'm surprised... I thought they were being greedy (and perhaps they were).

You can't apply "house price falls" to every region in the country - its just an average. Some areas will fall much more than the average and some very desiriable areas won't fall or will increase (there's always going to be rich people to buy the houses for cash?). So I am not surprised at this. I bet if you look in e.g. Rotherham prices are going for under the asking price!

[Damik]

Briefly, relative of mine put their 3 bed Hope Valley semi (modern, next to ex-council houses) on the market

at a price I thought was ridiculous, breaking the street record by 30% (no sales there for a couple of years, though). Asking price was 5x what was paid in 88, 3x its 98 valuation.

Three weeks later, and a bit of negotiating, sold for 97% of asking. And this is opposite a building site where they are just laying the sewers with much attendant noise and mess.

I'm surprised... I thought they were being greedy (and perhaps they were).

let's wait for the bank's valuation ... it is usually more sensible than all buyers and sellers together ...

[mitchbux]

Yes - a similar house in a nice bit of Sheffield (S17 / S10 -not Crookes!) would probably cost the same.

And bear in mind this is an 80s 3 bed semi in one of the less fashionable villages, not a Castleton cottage. You wouldn't, for example, book a weekend B&B stay there.

Great views though (although as I say there's a load of social housing being built in the field opposite).

I would see that as a plus point, it can be a right pain in the backside living somewhere touristy.

Roads clogged up, parking charges hiked (which then leads to inconsiderate parking and blocked drives) , local council more bothered about providing for tourists than the locals (paid for out of the locals council tax :angry: ). Hardly any local shops selling day-to-day stuff, but plenty of tea rooms, outdoor activity retailers, and gift shops...

[cakehead]

You can't apply "house price falls" to every region in the country - its just an average.

Spot on. Britain is a mass of micro-markets, not a single one. Every town has a millionaire's row, a village or street where the local boy or girl made good shows off their status. They're highly resistant to slumps because of supply and demand. Below that are places that are unusually picturesque and/or have good transport links (like the Hope Valley), or exceptional state schools, or whatever. Beneath that is 'the market'. Some places are distorted by things like Premiership wages and support shops and infrastructure that are unthinkable two miles down the road.

[Dr Elk]

You can't apply "house price falls" to every region in the country - its just an average. Some areas will fall much more than the average and some very desiriable areas won't fall or will increase (there's always going to be rich people to buy the houses for cash?). So I am not surprised at this. I bet if you look in e.g. Rotherham prices are going for under the asking price!

These are the derbyshire prices for april-june 2010. As you can see there is a massive price difference between regions in just one county. Hoping to buy in the High peak myself, which managed to drop 11% during the bull trap.

ALL PROPERTIES: Click headings to re-order table

AREA AV PRICE QUARTER ANNUAL SALES

Derbyshire Dales £258,767 2.3% 11.2% 214

South Derbyshire £173,127 6.4% 3.3% 301

North East Derbyshire £171,338 13.1% 4.2% 261

High Peak £162,512 -0.9% -11.0% 227

Amber Valley £161,766 -0.8% 17.4% 355

Chesterfield £141,615 4.4% 9.9% 264

Erewash £139,410 12.2% 7.7% 336

Bolsover £119,993 9.4% 1.7% 179

[cakehead]

One of the main differences today is there are no run down properties left to do up. Twenty years ago if you were prepared to take on a project you got a house in a nice area cheap. In 2007 barns around here - i.e. a few walls in a field with planning permission - were selling for more or less what the same thing would be renovated as a sole occupancy. The only profit for a developer was converting it into multiple dwellings.

A lot of people who'd done very nicely out of development over the years were left holding those babies when the music stopped.

[Riedquat]

I would see that as a plus point, it can be a right pain in the backside living somewhere touristy.

Roads clogged up, parking charges hiked (which then leads to inconsiderate parking and blocked drives) , local council more bothered about providing for tourists than the locals (paid for out of the locals council tax :angry: ). Hardly any local shops selling day-to-day stuff, but plenty of tea rooms, outdoor activity retailers, and gift shops...

Very true, but living just outside somewhere touristy can get the best of both worlds. I've family living just outside the edge of the Lake District (and not the west side either, which is a dump). It has tourists passing through but isn't overwhelmed by them, and although it suffers from the usual even-more-ridiculous-than-usual house prices and a skewed towards nearly-dead population there are still enough younger people to give it a bit of life, and the pub isn't merely a tourist restaurant with a bar.

[mitchbux]

These are the derbyshire prices for april-june 2010. As you can see there is a massive price difference between regions in just one county. Hoping to buy in the High peak myself, which managed to drop 11% during the bull trap.

ALL PROPERTIES: Click headings to re-order table

AREA AV PRICE QUARTER ANNUAL SALES

Derbyshire Dales £258,767 2.3% 11.2% 214

South Derbyshire £173,127 6.4% 3.3% 301

North East Derbyshire £171,338 13.1% 4.2% 261

High Peak £162,512 -0.9% -11.0% 227

Amber Valley £161,766 -0.8% 17.4% 355

Chesterfield £141,615 4.4% 9.9% 264

Erewash £139,410 12.2% 7.7% 336

Bolsover £119,993 9.4% 1.7% 179

Sold in High Peak and bought in Chesterfield 2008. I wanted to STR at the time, but the subsequent interest rate drop (Lifetime Tracker +0.5% uncollared) and those figures, are proving my OH's insistence that we didn't rent was the right decision....so far.

Not surprised that High Peak has been the hardest hit across Derbyshire. It saw some of the biggest increases outside London during HPI, and as a local at the time, I couldn't understand why. Perhaps people are seeing past the green fields and pretty architecture now, and can see the middling secondary schools, poor infrastructure/transport links/facilities.

We managed to move to a better house in nicer local area, are in catchment for much better schools, the nearest motorway isn't an hour away, we have access to better facilities, and can get everything we need without having to travel out of town. We've supposedly moved to a 'worse' region, but it doesn't feel like.

[mitchbux]

Very true, but living just outside somewhere touristy can get the best of both worlds. I've family living just outside the edge of the Lake District (and not the west side either, which is a dump). It has tourists passing through but isn't overwhelmed by them, and although it suffers from the usual even-more-ridiculous-than-usual house prices and a skewed towards nearly-dead population there are still enough younger people to give it a bit of life, and the pub isn't merely a tourist restaurant with a bar.

Which is why, for me, a house in Hope Valley would appeal more than one in Castleton. We are the Peak District end of Chesterfield, and it's a cracking spot.

[Riedquat]

Not surprised that High Peak has been the hardest hit across Derbyshire. It saw some of the biggest increases outside London during HPI, and as a local at the time, I couldn't understand why. Perhaps people are seeing past the green fields and pretty architecture now, and can see the middling secondary schools, poor infrastructure/transport links/facilities.

We managed to move to a better house in nicer local area, are in catchment for much better schools, the nearest motorway isn't an hour away, we have access to better facilities, and can get everything we need without having to travel out of town. We've supposedly moved to a 'worse' region, but it doesn't feel like.

All those things that you say aren't there sound like the ideal place to be. The only downside (to me, anyway, and from a practical point of view it's a big one) is the difficulty in getting to anywhere to work to make a living. Pleasant surroundings count far more than most facilities for me; they're only needed to district you from the dump you're living in.

[Si1]

I looked at a house recently where the vendor, who was a chatty type, said that he had lived in the property since new in 1988. I asked him, as a matter of curiousity, how much the house was when he bought it in 1988. He said £230k. It's on the market now for £460k.

So, according to your inflation figures, you'd say this particular property hasn't gone up in real terms? Yet IRs are a third of what they were in 1988. Interesting. Is property cheap?

only if you guarantee REAL IRs for the coming decades

do you know what that means?

[cakehead]

The Holme Valley is a better bet if you work in Manchester, Leeds or Sheffield and are under 75 years of age. Cheaper, more cosmopolitan, still very pretty with a high achieving state school. Lots of relocators so none of the parochialism or empty second homes and a thriving entertainment and arts scene.

[neil324]

House came on with an agent yesterday, well right move anyway, very brief description came across as lazy. Seems a good price around late 2003,although i'm guessing on the condition inside and would imagine needs work done. Had double glazing but was set inside wooden frames and cills.

Phoned today, house sold on 1st viewing, seems a back hander was done given the lazy description and speed of sale.