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gruffydd

Only 93.2% Of Asking Price Achieved On Av

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Interesting extract from article about Hometrack findings.

"The national average house price now stands at £160,900, down from a peak of £167,700 in June 2004 and down over 3.7% in the past 12 months.

As more transactions are occurring in the market, this suggests that buyer confidence is improving. But, while the number of buyers registered has increased by over 20% since the beginning of the year, there is still the issue of oversupply of housing stock. Hometrack says this month is no exception. While there has been no change in the number of buyers registered there has been continued increase in the number of properties coming on to the market. In September this increase was 1.9% in August it was 2.1%.

The resulting oversupply means prices will inevitably decrease again in the coming months, the research claims.

In the current buyers’ market, sales price as a percentage of asking price decreased to 93.2% in September compared 93.4% in August, indicating buyers are negotiating larger discounts and have greater bargaining power."

Edited by gruffydd

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So, houses can be bought 7%cheaper that advertised (compared to 2% cheaper last summer), add on the 3.7% drop plus wage inflation of 4.2% and that's...

...12.9% cheaper than last summer!

(Or does Hometrack work out the average house price by what its sold, so the drop in achievable price is taken into account)

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So, houses can be bought 7%cheaper that advertised (compared to 2% cheaper last summer), add on the 3.7% drop plus wage inflation of 4.2% and that's...

...12.9% cheaper than last summer!

(Or does Hometrack work out the average house price by what its sold, so the drop in achievable price is taken into account)

Since when was wage inflation 4.2%? We got 3% this year based on inflation beig 2%. Print trade generally offers ABOVE the inflation rate to stop all the hassle.

I have also found the asking price to selling price in my area a LOT more than 7%. The asking prices are overinflated to take into account you will offer 7% less!

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Guest consa
So, houses can be bought 7%cheaper that advertised (compared to 2% cheaper last summer), add on the 3.7% drop plus wage inflation of 4.2% and that's...

...12.9% cheaper than last summer!

(Or does Hometrack work out the average house price by what its sold, so the drop in achievable price is taken into account)

These drops will eventually feed through to the LR figures, the other VI's are able to hold their prices up by excluding the bad ones(ones that have significantly dropped asking prices) therefore minimalising the reality. Patience is required. How long before these 6-7% drops start to show and will they be masked? thats the sqillion dollar question. Take brighton for instance -2% last month thats -£1000/week on a 200K property, I wouldn't want to be losing that much, it's more than my wages FFS, you would in effect be working to lose money

:lol::lol::lol:

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These drops will eventually feed through to the LR figures, the other VI's are able to hold their prices up by excluding the bad ones(ones that have significantly dropped asking prices) therefore minimalising the reality. Patience is required. How long before these 6-7% drops start to show and will they be masked? thats the sqillion dollar question. Take brighton for instance -2% last month thats -£1000/week on a 200K property, I wouldn't want to be losing that much, it's more than my wages FFS, you would in effect be working to lose money

:lol::lol::lol:

That working to lose money quote reminds me of when rates went up to 15%. I seem to remember they actually went up to 17% then got pegged back in the same day! Anyhow, I was working selling office equipment at the time, several of us reached for the calculator to work out what our new mortgage payments would be, most had Neg Eq, the economy felt tits up, man for man, after calculating our mortgage payments, would have left us with about a fiver! The single guys were bust basically, only us "two income" couples seemed OK. Shit times though, the girlfriends wage to survive on, mine to pay the mortgage.

Edited by Converted Lurker

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Since when was wage inflation 4.2%? We got 3% this year based on inflation beig 2%. Print trade generally offers ABOVE the inflation rate to stop all the hassle.

I have also found the asking price to selling price in my area a LOT more than 7%. The asking prices are overinflated to take into account you will offer 7% less!

Teddyboy:

"Average earnings (excluding bonuses), or regular pay, as measured by the Average Earnings Index, rose by 3.9 per cent in the year to July 2005 down from 4.0 per cent in June. Including bonuses, average earnings rose by 4.2 per cent in the year to July, up from 4.1 per cent in June"

Source: http://www.statistics.gov.uk/cci/nugget.asp?id=10

Ok ok ok, the biggest rises were in the public sector!

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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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