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devils advocate

Prices Drop 10%, Average House Price Rises 15%

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This simple table proves how prices can fall by 10% across the board, whilst average prices rise by 15%.

Look at year 1. Hopefully its broadly representative of the price profile of the market, with a far greater number of sales at the lower prices. In year 2, where all prices drop 10%, the volumes significantly decrease in the lower half of the price range. This therefore sends the average price higher.

I can't help but think that this effect has been influencing the statistics issued by the usual VIs, where prices appear to be relatively stable year on year.

dev

price_increase.htm

price_increase.htm

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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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