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rantnrave

Rightmove Asking Price Index June

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Up 0.6% MoM

http://www.mubasher....siteLanguage=en

The average price at which a home is put on the market rose 0.6 percent, or 1,520 pounds, to 240,394 pounds between May and June, said property website Rightmove, with prices in London reaching fresh peaks. Prices have risen every month so far in 2011 and are now up 8.1 percent, or 17,984 pounds, in the year as sellers' expectations have "romped away from reality".

Edited by rantnrave

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sellers' expectations have "romped away from reality"
:lol:

What do we expect in a country full of reality tv fans? Nobody wants reality anymore, and that is why the politicians and bankers are getting away with murder. Nobody wants to know the truth.

... this country really is a basket case. Heads are buried firmly in the sand. All we need now is "Lehman II" , and the housing market will be toast :lol:.

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Prices have risen every month so far in 2011 and are now up 8.1 percent, or 17,984 pounds, in the year

And sales prices are down by how much YoY inc adjustment for inflation? Isn't it around 8%? Complete 180 degree divergence with reality. Mr Magoo?

Is there a name for specially marketing insanely priced houses to make the other sales on your books look reasonable?

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Page 10 of RM report has a complete fail in it on the 'Index Comparison'

... it suggests that the Nationwide figures for April were *precisely the same* as the RM ones for April. Ummmm ... I don't think so!

More importantly: perhaps vendors are 'pricing in' (even more) the fact (?) that they will be negotiated down?

Aidanapword

P.S. Perhaps they vendors are deluded enough to think that the mortgage valuations are based on local *asking* prices?

edit to add P.S.

Edited by Aidan Ap Word

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Please could we have a remind of how the Delusion Index is calculated? (Preferably a short note on the image itself, useful for when I keep it / send it to people)?

Ta

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with capitulation in the regions, albeit mild exceptions of SW and W Midlands with small rises

The region labeled as SW on this and many reports incorporates parts like Bristol that are firmly south-east, economically speaking. Maybe half the 'region', measured by land area. So you'd expect our trends to include an element of its trends.

Of course we, like other regions, have rich and poor areas. But this split between south-east "inner" band and "distant" parts is probably near-unique to us (I think East Anglia has it on a much smaller scale, and Midlands pretty negligible).

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Please could we have a remind of how the Delusion Index is calculated? (Preferably a short note on the image itself, useful for when I keep it / send it to people)?

Ta

Info is on the image itself... Rightmove avg price / Nationwide avg price. Scale on the left, so actually approaching 1.45, which is a shocking 45% level of delusion...

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There seems to be a massive divergence between asking and selling prices.

As a small anecdote, I would mention that in Tuscany, where I frequently travel to for work, (Follonica, nice place, mainly Italian tourists), asking prices in EAs windows are silly, but the real prices are somewhat 30-40% lower. I know because I have friends whom work around the building industry. It also helps that selling prices are not published.

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There seems to be a massive divergence between asking and selling prices.

As a small anecdote, I would mention that in Tuscany, where I frequently travel to for work, (Follonica, nice place, mainly Italian tourists), asking prices in EAs windows are silly, but the real prices are somewhat 30-40% lower. I know because I have friends whom work around the building industry. It also helps that selling prices are not published.

Interesting. I suppose it is assumed in Tuscany that you pay 30% below asking - not the sam here though is it? Our lot expect full asking price.

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Interesting. I suppose it is assumed in Tuscany that you pay 30% below asking - not the sam here though is it? Our lot expect full asking price.

"I'm not giving it away" :rolleyes:.

They have convinced themselves that house prices only ever go up. So, allowing for a year or two on the market, asking price should be 10% more than the highest price ever achieved in the area :lol:.

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"I'm not giving it away" :rolleyes:.

You often hear that phrase from people who bought it 10yrs ago for a quarter of the current asking price, as if making hundreds of thousands wasn't enough.

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You often hear that phrase from people who bought it 10yrs ago for a quarter of the current asking price, as if making hundreds of thousands wasn't enough.

My parents bought their house in 2003 for £99k. I ask them what they think it would be worth today and they said £150k. In reality similar houses have sold recently for near £200k and were even higher at peak.

I expect it's the same for most vendors who bought more than five or so years ago. They have little idea of what it's worth until mr estate agent comes in with his bull shit over valuation. Then the vendor thinks that IS the value, he goes on rightmove to see what he can buy with his new found wealth, maybe factors in a few luxuries with the profits he's cleverly made.

So then when Mr estate agent rings up a month later advising him to reduce after 0 viewings he won't. Even though the almost identical house next door failed to sell after nearly four years on the market at 20% less (true story). Because it will be a phycological loss. He's already spent the money in his mind.

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They have convinced themselves that house prices only ever go up. So, allowing for a year or two on the market, asking price should be 10% more than the highest price ever achieved in the area :lol:.

And if they are Express readers, they will of read their recent "16% up" figure. :rolleyes:

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I expect it's the same for most vendors who bought more than five or so years ago. They have little idea of what it's worth until mr estate agent comes in with his bull shit over valuation. Then the vendor thinks that IS the value, he goes on rightmove to see what he can buy with his new found wealth, maybe factors in a few luxuries with the profits he's cleverly made.

So then when Mr estate agent rings up a month later advising him to reduce after 0 viewings he won't. Even though the almost identical house next door failed to sell after nearly four years on the market at 20% less (true story). Because it will be a phycological loss. He's already spent the money in his mind.

Yes that is probably the most likely picture being played out right now.

It is about time these estate agents realised they are doing themselves no favours right now, with all this overvaluing, just to get that seller on their books.It is just leading to no sales.

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Its asking prices ... not getting prices.

Could be a bear sign.

I've lost count of the number of people who price their house by adding up all their debt, putting in a new car + holiday + deposit on the next place.

Sellers are delaying and delaying. They have a very narrow, short window to shift their hosues before IRs start rising and things go rapidly down.

On a connected issue, the local rag had an article about 3 EAs joining together to do auctions i.e. they hire the auction house for a day or so, bring some stock.

And, to quote the EA: @auctions can see properties realise higher prices'.

Suprise that as one of the EAs has trailing an auction for house near me for months. Come day after Auction - back to 'For Sale' i.e. reserve not met.

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***STOP PRESS******

Remember people, that not only is this asking prices, its initial asking prices.

No price drops are ever measured by Rightmove.

None.

Ever.

No matter how much the asking price drops, its not included in Rightmove reports.

Thus, it will always be strongly biased towards an upward trend.

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I have come to the conclusion that, here in Swansea, they just add a grand a week to the average house no matter what. Bigger houses near the sea or countryside, well, it looks like let's add 2 or 3 grand a week.

The hilarious but soul destroying ones are the ones that do not sell for a year, change EAs and the EAs stick 50K on the askin price over last year. I go in and say "That house has been on the market since 2005!". They look at me as if I had just asked to roger them all.

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I have come to the conclusion that, here in Swansea, they just add a grand a week to the average house no matter what. Bigger houses near the sea or countryside, well, it looks like let's add 2 or 3 grand a week.

The hilarious but soul destroying ones are the ones that do not sell for a year, change EAs and the EAs stick 50K on the askin price over last year. I go in and say "That house has been on the market since 2005!". They look at me as if I had just asked to roger them all.

They were probably getting offers too much off asking. So put the asking price up £50k buyer knocks £50k they get the price they want, buyer gets a "bargain" EA gets hid fat commision. Everyones a winner.

At least thats the theory.

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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
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      • up 5%



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