Jump to content
House Price Crash Forum
Sign in to follow this  
Converted Lurker

Volume Of Sales

Recommended Posts

I believe this understated and airbrushed stat. says far more re. current market conditions and where they are headed than prices. Volume in, for example, L`pool is down 18% (L.R. quarter comparison YoY) and yet there is massive over development there, particularly in the city centre, so therefore an argument could be put forward that the drop in volumes is massive. An analogy with car sales-commentators do not stress that average prices are still up due to a disproportionate amount of Range Rovers and BMWs selling, they complain re. the sales volume being down 13% YoY. Any thoughts on how relevant volume is?

Edited by Converted Lurker

Share this post

Link to post
Share on other sites

Volume is absolutely relevant to any trend. In short, rising volume means the trend is gaining momentum, falling volume means the trend is running out of steam.

1. Rising price, rising volume - prices likely to continue rising.

2. Rising price falling volume - prices likely to stop rising.

3. Falling price rising volume - prices likely to keep falling.

4. Falling price falling volume - prices likely to stop falling.

We're around point number 2 or 3 right now depending on what country you are in. UK seems to be at point 2, parts of Australia are at 2 or 3 with Sydney in particular being at point 3.

Take a look at the attached graph to see what stage 3 looks like. Data from the Commonwealth Bank (Oz).



Share this post

Link to post
Share on other sites

Well, the Land Registry has shown falling prices (1.68% since Q3) and increasing volumes since the same period last year. Maybe we are entering stage 3?

Time will tell.

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.

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.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 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.