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gruffydd

New House Prices Crash 5.3% Year-on-year (sept-sept)

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http://icsurreyonline.icnetwork.co.uk/busi...-name_page.html

Housing market proves difficult Oct 11 2005

"After several months of looking like recovery was on the way, the UK property market is proving difficult again with average house prices down according to data from SmartNewHomes.com, the UK's leading new homes website.

The monthly report released today by SmartNewHomes.com reveals that the average price of a new home in the UK in September 2005 was £255,916, down 5.3% since the same time last year. This is the sixth consecutive month of negative annual price inflation and represents a sharp decrease on last month's average price, down 2.3%.

Prices are also down on average 2.1% over the last quarter which is the first quarterly decrease since May 2005."

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David Bexon, Managing Director of SmartNewHomes.com, comments on the report: “Although we usually expect house prices to be picking up again after the summer slowdown at this time of year, we have experienced a further downturn in the market. This can be down to a number of factors with not least the pressure on the economy from the global oil crisis, limited consumer confidence and reduced high street spending contributing their parts.

Edited by gruffydd

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Will the average prices of newbuilds fall faster than those of second-hand homes over the next 24 months? Opinions welcome!

Edited by gruffydd

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There is a development near me that is currently building 610 (yes six hundred and ten) new builds all on one development.

Very few houses are shifting round here at the moment. If prices drop how are they going to shift 610 new build properties?

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Will the average prices of newbuilds fall faster than those of second-hand homes over the next 24 months? Opinions welcome!

Yes.

Like a new car loses value the moment you drive away in it so newbuilds always lose value once they have a buyer. This is not usually a problem in a market of rising property prices as the property quickly regains its value but in a market of falling property prices buying newbuild means you start off in negative equity and just keep losing money.

I am amused by the schemes used to get people to buy newbuilds, some near me had a limited offer of free plasma tvs for new buyers and, near my Mum & Dad's place, newbuild houses were offered with a free seven day holiday to Venice! Well worth thousands of pounds of negative equity! :D:D:D

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Will the average prices of newbuilds fall faster than those of second-hand homes over the next 24 months? Opinions welcome!

Initially yes - in fact new build 2 beds have dropped a lot further than the average property in the last year, but then there is a knock on effect

If a new build 2 bed was 200K last year (in the south east) - you can probably pick up a similar place for 160-170K (especially in December when the big builders are concerened about their annual sales figures)

By comparison a Victorian 2 bed conversion with more character, may have been 200K last year and is now 185-190K

HOWEVER

If that same new build drops another 10K and another 10K - what is that Victorian place worth now?

People may be prepared to pay a bit more for that fireplace and higher ceilings, but there is a limit

If the new build is 10K cheaper - fair enough, but if the new build is 50K cheaper - to hell with the character

New builds will drag down the prices of 2nd hand homes way before there is such a differential

When you have to sell a single home, you can wait in denial, MEW. rent and do many things to hold off a sale

When you have a billion pounds worth of homes to sell in the next 12 months, you don't have that luxury

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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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