The Power Of Accurate Sales Information

[the don]

ive beeen loking at property sales data on www. nethouseprices.com

where i live in chester, on my road, which is a major suburban road, a house has just come on the market. it is a 4 bedroomed 1970s box with 2 garages for £350k asking.

i checked the last sale registered on this house was mid 2001 at £170k.

the type of hosue is one where any upgrades would only be internal (decor, kitchens etc) as the external appearance is the same as adjacent houses.

where is the logic that says the house was "worth" £170k 5 years ago. and is now " worth" £350k today?

after at most 15% general inflation todays price should be c £210k plus perhaps a little if they have fitted a new kitchen etc.

of interest also is that on this road in 2001 and 2002 there were 12-15 property sales recorded each year.

in 2005 so far there has been 1, despite probaly 25 houses being on the market throughout the year ( i think there are 10 on the market at present)

these ludicrous prices have effectively killed off the market and the income stream of the EA's, surveyors etc.

i think the crash will be more severe in the north where the % increase appears to be worse than the south (i moved up from sussex in 2002).

earnings are a long way below south east wages and cannot be enough for FTBers in most cases to buy the bottom end properties that free up movements further up the chain.