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Stewie

In Denial

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http://icsouthlondon.icnetwork.co.uk/0100n...-name_page.html

I couldn't believe it when I read this. Looks like prices are dropping significantly in Merton.

If only articles like this made it into the main press.

The average cost of a property fell from £315,368 in March 2005 to £294,272 this March. But estate agents are reporting a healthy trade across the borough and are mystified by the latest figures.
He put the slump in the figures down to sellers hanging on to their property until prices rise to meet their expectations.
(Wouldn't that put prices up through lower supply?)
Robert Davies, of Turners estate agents, told a similar story in Morden. "Someone mentioned this fall in price the other day," he said. "I thought they were making it up to try and get a discount."

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Have you noticed this bit:

Robert Davies, of Turners estate agents, told a similar story in Morden. "Someone mentioned this fall in price the other day," he said. "I thought they were making it up to try and get a discount."

But as EAs are so called experts, surely they would be analysing the figures as soon as they come out - like we do! :P

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I think the EAs that were interviewed for this article have done a good job of showing how incompetent they are

To be fair to the EAs, the figures from the Land Registry for Merton are all over the place. Up on the quarter, down on the year, terraces up on the quarter down on the year, semis the opposite down on the quarter, up on the year, big drop in detached but based on a tiny sample. They're a pretty good example of how useless the land registry figures can be unfiltered, because they are working on small local sample sizes and have no mix-adjustment.

The truth probably is that outer London is rising a bit less than inner London, and maybe even falling slightly, but that the 6.7% is a bit of a freak result - so the estate agents may really not be finding this to be the case in their practical experience. Also the overall figure for Merton may reflect a compression in the market, with flats and terraces doing better than semis and detached - smaller numbers of the latter are pushing the average down.

Edited by Magpie

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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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