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exiges

Detached Up, Everything Else Down

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According to Rightmove's latest data, here are the house price changes by house type over the last 12 months:

Detached: +1.2%

Semi: -0.5%

Terraced: -1.4%

Flats: -1.2%

My take on it, is that generally detached houses are the more expensive, and therefore more likely to be bought by existing home owners, heavy with equity trading amongst themselves.. the entrant level houses living in the real world are all down.

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

Edited by exiges

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Also, the rich are getting richer and everyone else is getting poorer.

How many households with a very good income are trading up to detached houses and renting out their former homes rather than selling them?

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According to Rightmove's latest data, here are the house price changes by house type over the last 12 months:

Detached: +1.2%

Semi: -0.5%

Terraced: -1.4%

Flats: -1.2%

My take on it, is that generally detached houses are the more expensive, and therefore more likely to be bought by existing home owners, heavy with equity trading amongst themselves.. the entrant level houses living in the real world are all down.

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

Asking prices. It tells me that people who live in detached houses are generally more greedy and more in denial than others.

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According to Rightmove's latest data, here are the house price changes by house type over the last 12 months:

Detached: +1.2%

Semi: -0.5%

Terraced: -1.4%

Flats: -1.2%

My take on it, is that generally detached houses are the more expensive, and therefore more likely to be bought by existing home owners, heavy with equity trading amongst themselves.. the entrant level houses living in the real world are all down.

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

To show a net gain in asking prices there must have been a lot of detached house put up for sale.

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According to Rightmove's latest data, here are the house price changes by house type over the last 12 months:

Detached: +1.2%

Semi: -0.5%

Terraced: -1.4%

Flats: -1.2%

My take on it, is that generally detached houses are the more expensive, and therefore more likely to be bought by existing home owners, heavy with equity trading amongst themselves.. the entrant level houses living in the real world are all down.

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

You are talking as if these prices are what they sold for. Rightmove are asking prices when first put on the market. Their prices have nothing at all to do with SOLD prices. Whenever rightmove is mentioned on here people really should mention asking prices.

http://www.rightmove.co.uk/news/house-price-index

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You are talking as if these prices are what they sold for. Rightmove are asking prices when first put on the market. Their prices have nothing at all to do with SOLD prices. Whenever rightmove is mentioned on here people really should mention asking prices.

Rightmoves terminology and methodology has been discussed comprehensively in other threads, I was just using their terms. This thread is to question why detached prices are higher whereas all other property types are down.

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You are talking as if these prices are what they sold for. Rightmove are asking prices when first put on the market. Their prices have nothing at all to do with SOLD prices. Whenever rightmove is mentioned on here people really should mention asking prices.

http://www.rightmove.co.uk/news/house-price-index

Land Registry figures

Average prices by propertytype (England and Wales)

November 2010 November 2009 Difference (%)

Detached £259,156 £252,032 2.8

Semi-detached £155,487 £152,241 2.1

Terraced £126,259 £123,719 2.1

Flat/maisonette £152,730 £150,486 1.5

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Thanks for posting. This is as good as me getting a negative today to be honest as no plans for a detached yet :)

Edited by Kyoto

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My take on this is that the rate of new quality house building has been far too low for too long, and nimby local politicians have tried to reduce this even further by giving planning permission for rabbit hutch flats or high density homes instead of proper detached houses (this reduce the need to build on new land).

So we have a glut of horrible flats, hence price falls, meanwhile at the top end the shortages continue.

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A multi-millionaire of my acquaintance has just bought a castle for around 2 million reduced from 7 million. Apparently he has been advised to sink a lot of his money into high-end property by his financial advisers.

I think there are several things going on here - an upturn at the higher end of the market, implying that this sector actually took some of its HPC medicine. However, more importantly I think there is a rather frantic flight to safe assets going on, even if they may lose some value. I wonder why... ;)

To put it another way, the recovery at the top end of the market may be a future trouble indicator, rather than a 'recovereh'... I shall leave it as an exercise for the reader as to why other physical assets might look even less reliable than high-end property ;)

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According to Rightmove's latest data, here are the house price changes by house type over the last 12 months:

Detached: +1.2%

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

Which coincide with other observations that a the top group (which may even as big as the top 30%), are having it better than ever..

(e.g. John Lewis/waitrose results are spectacular etc).

More cheap money and more asset inflating and this will get worse...

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My take on it, is that generally detached houses are the more expensive, and therefore more likely to be bought by existing home owners, heavy with equity trading amongst themselves.. the entrant level houses living in the real world are all down.

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

Could be. Although as someone who spent time looking for a larger family home in the SE I noticed they were much rarer. Scarcity of course has an impact on any market regardless of our opinions on over valuation.

I think we all noticed the boom in flat building in recent years but that wasn't matched by similar building of detached (or was it?). And don't forget there are still plenty of people around with plenty of money - as people delight in pointing out, we aren't really all in this together! The people with money are always going to be chasing the "better" housing.

I feel sorry for people who did buy those new build flats. You lose that "new" premium straight away, add in falling prices, and you will easily get trapped. As a larger house owner I understand the risk of negative equity but getting trapped in a family house you plan to stay in for 20 years doesn't seem so bad! Besides only another 15 years to pay off - groan :(!

Edited by Orbital

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Detached housing typically has a larger land component than a Fiat. The larger land component strengthens of holds the price more than a small land component.

Also flats have a higher % of investors than a detached house. Owners tend not to sell in a slump and will wait it out until the market recovers whereas investors can get spooked and sell therefore flats are the riskier option in this case.

Much of the detached housing I have seen, you would have great difficulty walking down one side if not both sides of the house...poor heat insulation when all four walls exposed.

A good quality build wide semi with good sound insulation and space on one side is far better than a poorly built new-build detached, two foot space around it and a postage stamp garden. ;)

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Rightmoves terminology and methodology has been discussed comprehensively in other threads, I was just using their terms. This thread is to question why detached prices are higher whereas all other property types are down.

The supply side of supply and demand?

Supply of high-density housing has risen hugely in recent years.

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According to Rightmove's latest data, here are the house price changes by house type over the last 12 months:

Detached: +1.2%

Semi: -0.5%

Terraced: -1.4%

Flats: -1.2%

My take on it, is that generally detached houses are the more expensive, and therefore more likely to be bought by existing home owners, heavy with equity trading amongst themselves.. the entrant level houses living in the real world are all down.

To me, it's only people trading among themselves at the top end that's keeping the figures positive and the VIs with something to talk about.

I am only looking at detacherd in my area and they are down by about 10% since late last year. Flats less so and semi's also less so. Detached are leading the charge down because no one can afford them and the cut off is £250k for many with an eye on tax.

Edited by Realistbear

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Just did a quick search on my south London postcode, the only recent new listings were semi-d and detached (no flats, terraced...) so the picture in the report of new asking going up as there are no new listing at the lower end and the index being skewed due to mix effects seems to align with the picture locally.

Generally the number of FTB type properties (lower end & smaller) available has gone down and most of the stuff still for sale in that range is over priced hand has been for sale for many months (up to 2-3 years in a number of cases). A perennial favourite is a very nice flat being off loaded by the deceased owners kids (on /off market, different agents pricing up & down) they have been trying to sell since 2008, 2007 price in the same block (private 1960s block very big rooms and good spec etc) 230k, the price dropped to 195k then went back up as the property indices improved to 220k now reduced to 170k in 2011, I suspect they might have to go for 150k to shift with current mortgage conditions.

Local reflections:

- The quality of what is for sale is generally very bad

- The prices are delusional even if the quality was good which it isn't

This seems to align with the auction price index stuff today as well.

I think some of the local agents will go if they don't have a good lettings side at this rate (it won't be the indy one but the chains pulling the plug on branches.)

PS F*xt*ns only have 8 for sale and are at the lower end of the market with all the poor quality stuff at stupid prices...

Edited by koala_bear

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Just did a quick search on my south London postcode, the only recent new listings were semi-d and detached (no flats, terraced...) so the picture in the report of new asking going up as there are no new listing at the lower end and the index being skewed due to mix effects seems to align with the picture locally.

Generally the number of FTB type properties (lower end & smaller) available has gone down and most of the stuff still for sale in that range is over priced hand has been for sale for many months (up to 2-3 years in a number of cases). A perennial favourite is a very nice flat being off loaded by the deceased owners kids (on /off market, different agents pricing up & down) they have been trying to sell since 2008, 2007 price in the same block (private 1960s block very big rooms and good spec etc) 230k, the price dropped to 195k then went back up as the property indices improved to 220k now reduced to 170k in 2011, I suspect they might have to go for 150k to shift with current mortgage conditions.

Local reflections:

- The quality of what is for sale is generally very bad

- The prices are delusional even if the quality was good which it isn't

This seems to align with the auction price index stuff today as well.

I think some of the local agents will go if they don't have a good lettings side at this rate (it won't be the indy one but the chains pulling the plug on branches.)

Can`t wait until this starts to happen, sends a strong message to the sheeple.

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People who sell detached houses are usually downsizers and don't need to sell. They will therefore try their luck with the highest price possible, to give them the best retirement etc. Any reductions from the initial price aren't recorded on the Rightmove figures.

They will also probably have spent a lot of money on the property, making it 'perfect' and will believe that it is 'worth it'.

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This makes sense. The detached / not detached plit correlates with the "2 markets" theory mentioned on other threads from past months data. The top half of the market has healthier volumes and fewer forced sales, hence the price resilience.

Personally I only care about the bottom half / two thirds of the market as thats what I'll be buying when the drops really start. :)

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  • 312 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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