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I don't think this is right. Or at least it should be.

It should be London house up +5% Northern down -50% add them together and divide by two gives -22.5%. Overall.

i dont think thats right, it should be house prices throughout the uk are slightly up after adjusting for it being grim oop north

http://www.youtube.com/watch?v=8DqvXRd64Mo

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this is the sort of thing the weighting is for.

otherwise I could set myself up as an estate agent, put my house for sale on rightmove priced at 100 million for a month and then reduce the price to a more reasonable 100k and skew the rightmove asking prices index with one house. maybe we should set up an estate agency or two and do this all over the country lol.

statistics are lies, use your eyes.

Rightmove don't include erroneous listings and I assume this would be classed as one.

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I don't think this is right. Or at least it should be.

It should be London house up +5% Northern down -50% add them together and divide by two gives -22.5%. Overall.

You can take an average of averages but it generally isn't used because it is not a very useful number and is pretty much meaningless.

Rather than taking the average of price increases you would take the change in average house prices. Two completely different calculations. You could then sub-divide these into region and property type. For example the average price of 3 bed semi-detached houses in the North East. Also taking the average of these two prices is pretty meaningless because if you live in the North East and you see the average price of houses is £550,000, what use is that? And likewise if you live in a 3 bed house in Chelsea.

Edited by caparn
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You can take an average of averages but it generally isn't used because it is not a very useful number and is pretty much meaningless.

Rather than taking the average of price increases you would take the change in average house prices. Two completely different calculations. You could then sub-divide these into region and property type. For example the average price of 3 bed semi-detached houses in the North East. Also taking the average of these two prices is pretty meaningless because if you live in the North East and you see the average price of houses is £550,000, what use is that? And likewise if you live in a 3 bed house in Chelsea.

I think we can agree that it is actually very difficult to produce an accurate house price index and this before you start introducing mix adjusting and like for like sales.

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I think we can agree that it is actually very difficult to produce an accurate house price index and this before you start introducing mix adjusting and like for like sales.

Yes, I agree.

rightmove have a facility where you can enter a post code and it shows the trends on prices sold:

http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalPropertiesSoldAndAveragePrice.html?searchLocation=NE1

Edited by caparn
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Umm. Question: Does the "unemployment rate" only cover those people who qualify for the dole? Can you register as being "unemployed" and be included in the government statistics even if you do not qualify for unemployment benefit? (Because your income from "other sources" is over the limit.)

Two figures / percentages are widely quoted in the media. One is the number of unemployed / unemployment rate and the other is the "claimant count".

There's an explanation on the DETI's website (Department of Enterprise, Trade and Investment, which it appears is responsible for these things this week). Website is here http://www.detini.gov.uk/deti-stats-index/stats-labour-market/stats-labour-market-unemployment/stats-labour-market-ilo-claimant-count.htm

I can copy and paste the explanation if anyone's interested.

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If a house in the north of England went down 50% from £100,000 down to £50,000

and a house in London went up by 5% from £1,000,000 up to £1,050,000

What would be the average price fall as a percentage

a) a fall of 22. 5 %

B) prices haven't changed

c) some thing else

I thought a) was the answer but now I think it's B) London has a bigger influence on house prices than I had originally thought.

It does if the only one that sells is the house from London, which is what is happening. See the FT today for news of high end London sales.

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Trying to reduce any set of figures to one representative number is always going to be problematic, instead use some data visualisation - geographic, numeric and abstract - and show as much of the actual data as you can

We do get a much greater break down with the Land Reg. From those more indepth figures, can we work out their methodology, or do they publish that anyway?

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If.....

.....house prices do not change in a 12 month period and the volumes of houses (by price band) change as per the volumes shown in the Land Registry June 2011 report.......

See page 13

What is the effect on the average house price?

My best calculation is to guess that all houses in a price band sold at the midpoint and thus came up with a 4.4% increase in the average price despite there being no change in any individual price.

If the fall in volumes at the bottom and increase in volumes at the top can have this effect, do we know whether any account is taken to avoid this distortion in the average price figure published by LR?

Edited by Caveat Mortgagor
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If a virus killed half the population of the UK but left all the houses and money supply intact, what would the average house price be?

When, i.e. is the epidemic over or are people still dying?

A maths questions... mathSSSSSSSSSSSSSSSSS.

Sorry, pet hate!

Why is it not "math's"?

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If a virus killed half the population of the UK but left all the houses and money supply intact, what would the average house price be?

yes, but where would the survivors be buried?

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If a house in the north of England went down 50% from £100,000 down to £50,000

and a house in London went up by 5% from £1,000,000 up to £1,050,000

What would be the average price fall as a percentage

The word 'average' is very ambiguous in maths, even before you start playing around with things like weighted averages, seasonal adjustment, etc.

'Average' can mean arithmetic mean, median, or mode.

You thus have the option of choosing the 'average' figure that best fits your argument.

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  • 433 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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