Jump to content
House Price Crash Forum
othello

Figures Are Meaningless

Recommended Posts

What meaning can be attached to the 'average' house price stats, whether Land Registry, Halifax, Nationwide etc? I've just looked at the 12 month changes in my region on the Land Registry web site:

Chiltern -14.2%

South Bucks +5%

Aylesbury -3.3%

Wycombe +11.5%

It appears that prices have crashed in the Chiltern area and jumped in the Wycombe area. Sample size - around 400 properties each.

Average change across region -1%.

The headline figure shows an annual change of +3.5%

Meaningless I suggest!

Share this post


Link to post
Share on other sites

That's what I was wondering too.

If you had an index of "Average Price of shirts" and in one year a particular fashion for, let's say, Ralph Lauren shirts, then the average price of shirts would probably go up.

The analogy for this that I can think of is that over the last couple of years there has been a "fashion" for overpriced shoebox flats sold for more than equivalent houses, so more transactions at higher values, meanwhile at the bottom of the market, where the "normal" buyer is priced out, there would presumably be less transactions than normal.

Fair enough it's a trite example, but as you say, what meaning can actually be attached to "average house prices"?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 342 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.