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BTLlivingthedream

Rightmove's Stats: Brought To You Early

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Average asking prices fall 2.6% (£6,298), as Home Information Pack implementation

distorts the market

LOL. :lol:

Why is that particularly lolworthy? There's been a 41% drop in listings of 4+ bed properties, if the index isn't mix-adjusted then that's bound to have an impact. There's probably been a 90% drop in people listing their properties at really stupid prices too.

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It's worse than it looks too.

Rightmove are blaming HPI for distorting the market.

"The average number of 4+ bedroom properties coming to the market per month in 2007

between January and July was 40,000. In the month following the August 1st HIP deadline,

this fell to 23,400; a slump of 41%."

Okay. Aren't we always told that hpi is driven by lack of supply?

They've reduced the supply by 40%. So why are asking prices still falling by 2.6%?

We should be told.

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Interesting.

The case they make that this is not a real reflection of a downturn sounds convincing to me, despite their VI.

But it will lead to some nice bearish media coverage.

Edit: MargeSimpson, if you read the text on their 2nd page, you'll see why "decrease in supply" has meant "fall in price": It's because the decrease in supply is affecting bigger (expensive) properties disproportionately. Therefore, the average asking price reflects the fact that most of the houses coming to market are smaller (cheaper). Of course, they WOULD say that but they do offer several additional statistics to support their claim.

Edited by Selling up

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It's worse than it looks too.

Rightmove are blaming HPI for distorting the market.

"The average number of 4+ bedroom properties coming to the market per month in 2007

between January and July was 40,000. In the month following the August 1st HIP deadline,

this fell to 23,400; a slump of 41%."

Okay. Aren't we always told that hpi is driven by lack of supply?

They've reduced the supply by 40%. So why are asking prices still falling by 2.6%?

We should be told.

Because speculative sellers have gone, so asking prices are more "realistic"

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Question: On what are their "September average asking price" figures based, if today we are only 13 days into September?

EDIT: Nevermind I just found it - 12th Aug to 8th Sept figures.

Edited by Ethel

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HousePriceIndex17September2007_0471.pdf

They're probably going to remove it from the website when they look at HPC, so I've took a copy for you all.

Well done.

Like another poster said i thought HIPs were supposed to push prices up due to less supply? Pathetic.

It could be possible though that properties being pushed into different catgeories might distort the results.

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"The lower number of 4+ bedroom properties coming onto the market has also depressed average national asking prices by 2.6% (£6,298). Whilst this is the largest monthly fall measured since January 2002, it is largely a statistical anomaly caused by HIPs being phased in by number of bedrooms, resulting in fewer higher-priced 4+ bedroom properties coming to the market in the last month. It has resulted in the annual rate of increase falling from 12.8% to 9.6%."

I have no idea how rightmove calculate their averages, but it sounds pretty basic if fewer high price houses (4+ beds) causes the average price of house to drop. If I buy fewer expensive items at Tesco and therefore the average price of each item is lower, it doesn't mean that prices have fallen. The fundamental question is, have house prices fallen? Can't they look at the average price per number of bedrooms and draw some meaningful conclusions?

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Guest wrongmove
Because speculative sellers have gone, so asking prices are more "realistic"

That will be the reason IMHO, rather than lack of mix adjustment. It may be lack of kite flyers. Time will tell.

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Well done BTLlivingthedream! I'm also intrigued as to how you managed to find this.

I wonder whether this will hit the news before Monday... :ph34r:

Copy and pasted from another site. Would be nice to acknowledge the source :angry:

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Average losses of 364 quid a day in the south west last month ... niiiiiiiiceeee

2.6% represents an annualised rate of 31.20% woooohoooo!

Edited by Kingmaker

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