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Average Asking Price For Uk Home Exceeds £250,000 For The First Time


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HOLA441

http://www.guardian.co.uk/money/2013/jun/17/average-asking-price-uk-home

Average house prices have exceeded £250,000 for the first time, according to new figures that will be seized upon by those who say coalition homebuyer schemes risk creating a new housing bubble.

In the latest report to suggest a pickup in activity after George Osborne's announcement of a Help to Buy scheme in his March budget, property site Rightmove said the national average asking price for a home had risen by 1.2% over the past month to reach £252,798.

Yeah average asking price hits a quarter of a million! This time next year Rodders we'll be millionaires.....

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Asking prices in England and Wales have risen 10% in six months, according to survey by Rightmove

Well of course they will do if you keep on saying and keep on saying that house prices are going up even when they're not.

Nothing is more certain than asking prices will rise under those circumstances.

Come the general election for sure they'll be saying vote for us as asking prices have gone up so much. It's no way to run a country that's for sure. Even some bankers are calling it moronic.

Edited by billybong
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I was chatting yesterday with one of the directors of a large Welsh EA firm and he/she was of the opinion that so few houses are now being sold that competitors were ramping up everything - basically, they make more money the more expensive a house sells for and as so few are selling then, allegedly, some EAs are ramping and ramping asking prices.

He/she said that he/she had no idea how some firms were still keeping going.

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Bloke I work with is an FTB and has recently been "bidding" for houses in the 700k range (sealed bids with asking price as minimum are the norm apparently in greater west london area ...). I'm speculating that he needs a mortgage of around 550k mortgage which would clock in at around 3k month.

Size of place is about the same as stuff I'm looking at in my area for about £200k ...

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I was chatting yesterday with one of the directors of a large Welsh EA firm and he/she was of the opinion that so few houses are now being sold that competitors were ramping up everything - basically, they make more money the more expensive a house sells for and as so few are selling then, allegedly, some EAs are ramping and ramping asking prices.

He/she said that he/she had no idea how some firms were still keeping going.

I had a feeling that was what was happening. I viewed some places last year and got that impression from the agents I spoke to. Some agents couldn't believe people were paying near the asking prices, but they were.

This sort of idea in business is an old one...when times are bad put your prices up till things improve. The thing is...the agents are making ti worse by putting the prices up so eventually their business will collapse.

Bye bye.

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I had a feeling that was what was happening. I viewed some places last year and got that impression from the agents I spoke to. Some agents couldn't believe people were paying near the asking prices, but they were.

This sort of idea in business is an old one...when times are bad put your prices up till things improve. The thing is...the agents are making ti worse by putting the prices up so eventually their business will collapse.

Bye bye.

In the light of this, will I miss the boat, have to remain a tenant, and not be able to get on with my life?

Are properties being snapped up South of Watford? Possibly even in Oxhey?

Should I panic now and sink whatever cash I have into a property that a concerned-for-my-welfare estate agent may allow me to buy? What if estate agents don't take to me, and don't want to grant me a hole in some bricks of my own in return for 30 years of my labour? What then???

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Average asking price £250K

Average selling price 160K.

If you are buying, make sure you substract 90K +/- from the asking price.

Don't forget the costs if selling one to move to another can tot up to a hefty sum:

Stamp duty.

Agents fees.

Solicitors/conveyancing fees.

Surveyor costs.

Mortgage and brokerage fees.

New furniture.

DIY.

I am sure there are plenty more optional incidental costs to add on. ;)

Edit to add.......add it to the debt, then it doesn't cost a penny, what is free today is compounded interest tomorrow, OK inflation will take care of that....not.

Edited by winkie
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HOLA4410

The best is selling in Norwich NR2 but asking prices have jumped instantly.

160m2 house sells for 375,000 and then loads of smaller worse homes have come on 400/450.

I dont know where they get the money from but you would think people where smart enough not to overpay by 50k in a couple of weeks.

People starting to talk about prices going up by 25% next year no new jobs so obviously this is going to be down to financial wizardry.

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It's fantastic asking prices have gone up by 10 to 15 % in the last six months and Carney isn't even here yet so prices set to double in the next year. Don't miss out. Free money.

Asking prices in south east soar upward in 2013 (http://www.cityam.com/article/asking-prices-south-east-soar-upward-2013):

"Across the capital, the average amount of time properties are spending on the market is declining, from over 100 days as recently as January to below 70 now, indicating rising demand.

Miles Shipside, director at Rightmove, said chancellor George Osborne’s mortgage guarantee scheme was affecting the market.

“With help to buy for the wider market due in January, some buyers are pre-empting any potential scheme induced price rises by doing a deal now,” he said."

Which is causing prices to rise. Which is the usual effect of pumping taxpayers money into the market. Which is as predicted.

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I dont know where they get the money from but you would think people where smart enough not to overpay by 50k in a couple of weeks.

People starting to talk about prices going up by 25% next year no new jobs so obviously this is going to be down to financial wizardry.

People will pay whatever they can get their hands on as we have seen over the last 15 years. That is why bankers are supposed to protect them from themselves. Unfortunately thanks to the free taxpayer put option granted by politicians, bankers no longer need fear the consequences of high-risk lending decisions.

Pressure has been applied to banks by the selfsame politicans to get lending again, and with FLS and HTB the message from Whitehall is clear. I suspect lenders have been increasing multiples and loosening criteria in response. In other words yes, the financial wizardry continues.

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Hurrah! this calls for a song! Lets go buy a house!

Oh, oh, oh!

Let's go buy a house

Pay Up over the highest price!

Let's go buy a house and see it soaring!

Up through the atmosphere

Up where the air is clear

Oh, let's go buy a house!

fs_67736_w6A.jpg

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I don't bother to look so much these days, but when this rubbish is trotted out I check Rightmove for my area of the south east using Chrome Property Tracker and sure enough prices are continuing to fall.

It seems to be the media way:

January - Prices are going up...

August - Prices are going up...

December - Prices are going up...

Next year - the indexes show that prices fell last year - which must mean they are about to shoot back up again - Prices are going up...

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There is also early evidence of a wider recovery as asking prices in the north (North, North West, Yorks & Humber, East Midlands, West Midlands, and Wales) rose by 9.2% , almost keeping pace with the 10.6% seen in the south (Greater London, South East, South West and East Anglia) over the first half of the year.

Ah, that well known standard half year-on-half year measure...particularly appropriate when using non-seasonally adjusted data.

In fact I remember only too well all the media reports in December about how asking prices had fallen 7% since June..:rolleyes:

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You do realise the Guardian is only printing this story because it sees Help to Buy and its effect on house prices as a stick to beat the Tories with? That's why they're going with asking prices and not mentioning actual sale prices.

It even comes clean in the article

"The figures are likely to fuel criticism of the plans for state mortgage subsidies, which many say risk artificially inflating prices and leaving young homebuyers crippled with debts or priced out of the market."

I'm not saying the Guardian is wrong to do so. I'm just pointing out the newspaper's motivation.

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HOLA4423

I was chatting yesterday with one of the directors of a large Welsh EA firm and he/she was of the opinion that so few houses are now being sold that competitors were ramping up everything - basically, they make more money the more expensive a house sells for and as so few are selling then, allegedly, some EAs are ramping and ramping asking prices.

He/she said that he/she had no idea how some firms were still keeping going.

Was their sex ambiguous? :D

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