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Realistbear

Manchester House Prices Down 57% As Crash Worsens

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Today's Guardian "How Boom Quickly converted to Bust." Manchester City Centre prices see flats sold for 236k down to auction guide price of 100k (off 57%). Other examples are flats that sold for 170k being offered for 110k. Same kind oif scenarios throughout City Centres up and down the country.

These falls are huge.

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Today's Guardian "How Boom Quickly converted to Bust." Manchester City Centre prices see flats sold for 236k down to auction guide price of 100k (off 57%). Other examples are flats that sold for 170k being offered for 110k. Same kind oif scenarios throughout City Centres up and down the country.

These falls are huge.

This is fantastic news, these 'units' will find a support level....eventually ;) One in Liverpool (beetham tower) recently sold at close on half of original price :)

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Guest grumpy-old-man
Do auction and repossessed sold prices go into the Land Reg figures, or any of the Haliwide figures...does any index include all residential housing transactions?

how many times have I said:

anomalies in the stats.

Mark my Words. ;)

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Do auction and repossessed sold prices go into the Land Reg figures, or any of the Haliwide figures...does any index include all residential housing transactions?

I would think Haliwide would "adjust" and season their data to factor our distressed sales as these would "tend" to lower the averages. I am afraid the LR data is no longer reliable following the Panorama expose showing hundreds (if not thousands) of fraudulent registrations where houses were registered for prices "paid" but without taking into account substantial "kickbacks." Tragically, our entire housing market is tainted with cover-ups, fraud and misrepresentation. It is a good thing we have journos willing to expose the fraud in the Lefty press such as the Guardian.

Edited by Realistbear

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Bit of a misleading topic headline here. These are apartment prices not houses. Big difference.

Whats happening to house prices in Manchester, are they down 57% as well?

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Guest grumpy-old-man
I would think Haliwide would "adjust" and season their data to factor our distressed sales as these would "tend" to lower the averages. I am afraid the LR data is no longer reliable following the Panorama expose showing hundreds (if not thousands) of fraudulent registrations where houses were registered for prices "paid" but without taking into account substantial "kickbacks." Tragically, our entire housing market is tainted with cover-ups, fraud and misrepresentation. It is a good thing we have journos willing to expose the fraud in the Lefty press such as the Guardian.

exactly RB.

I know you said the same thing in 2007 about the hpi stats being skewed.

you were spot-on imo.

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.... I am afraid the LR data is no longer reliable following the Panorama expose showing hundreds (if not thousands) of fraudulent registrations where houses were registered for prices "paid" but without taking into account substantial "kickbacks." Tragically, our entire housing market is tainted with cover-ups, fraud and misrepresentation.

Since the Land Reg HPI index only uses repeat sales to calculate HPI, the initial sale price of a new build flat would not affect land reg HPI.

However the next time the property is sold it will be, so the more the initial price is artificially inflated the more that will contribute to lowering HPI.

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Bit of a misleading topic headline here. These are apartment prices not houses. Big difference.

Whats happening to house prices in Manchester, are they down 57% as well?

The generally accepted term for the market these days is "HPI" or house price inflation. It has not been broken down to Semi-detached Price Inflation (SDPI) or even Flat Price Inflation (FPI). Just "HPI" as a catch all for all types of property.

The collapse at the lower end of the "housing" market will reflect in all levels quite soon. A bottom up crash.

THe size of the drops are really quite shocking and should send a chill down the spines of the greedy BTLers and the banks who ramped prices to such levels. Pity Gordon has seen fit to bail them out of their folly.

As for the market in Manckyland generally, it is possible other types of property are down by much more than the Vis are willing to admit. With no reliable data from the VIs there is only anecdotal evidence to go by.

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Since the Land Reg HPI index only uses repeat sales to calculate HPI, the initial sale price of a new build flat would not affect land reg HPI.

However the next time the property is sold it will be, so the more the initial price is artificially inflated the more that will contribute to lowering HPI.

Excellent. :rolleyes:

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These falls are huge.

...and could be seen by some as evidence of slowing in Manchesters normally bouyant housing market

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Linky:

http://www.guardian.co.uk/money/2008/mar/2...s.housingmarket

How boom quickly converted to bust

Repo man comes calling at former mill's flats bought at the height of rush for riches
Robert Booth
The Guardian, Tuesday March 25 2008
With its double-height living room and views across the Pennines and Manchester's city centre, the two-bedroom apartment in a converted Victorian biscuit factory must have seemed fairly priced to Christopher Williams at £236,500.
Now, three years on, Williams's outlay for a slice of the city-living dream looks ridiculous. His flat has been repossessed and will go under the auctioneer's hammer tomorrow with a guide price of £100,000.

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Jan 07 to Jan 08:

Detached +12%

Semi +3%

Terraced +9%

Flat -13%

So it is just flat prices that have dropped, not houses.

According to the LR, overall price drop for Manchester is 4.1%. This includes all types of houses:

Manchester

Average Cost: £152,134

Detached: £288,204

Semi-detached: £163,700

Terraced: £127,011

Flat: £157,625

Change in last quarter: -4.7%

Change in last year: 4.1%

Sales: 2264

Sources:

England and Wales

Land Registry of England and Wales, Crown copyright. The information above is based on figures provided by the Land Registry of England and Wales.

Figures for England and Wales are for the period October to December 2007.

http://news.bbc.co.uk/1/shared/spl/hi/in_d...ces/html/bn.stm

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This is fantastic news, these 'units' will find a support level....eventually ;) One in Liverpool (beetham tower) recently sold at close on half of original price :)

It will take a while for them to find their true level, purely on the basis that it takes builders a while to gear up into a boom, and just as long to gear down as prices start to come down or a market becomes saturated.

Therefore we'll still see recently completed blocks coming onto the market for a good few months yet, further distorting price.

The residential property market is notoriously slow to clear to equilibrium......I'll take a good 2 years for these places to find their true value IMHO.

Edited by Notlongnow

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My sister just bought a BTL in Manchester - 2 bed terrace for 77K (not sure of the area and no, I'm not happy about it) and she said to me the other day that there is no way this house could fall in value as it is already so cheap.

Then I started thinking about 'Duke Street' :lol::(:lol:

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this bit is good.....

When I walk through the corridors it feels like an empty hospital," said Josh Mitchell, 19, a history student at the University of Manchester now living cheaply in palatial surroundings at Albion Mill. "The whole six months I have been here I have only seen one other person living on this floor."

Mitchell's father bought the three-bedroom flat for £170,000 after it was repossessed last year. But it is likely he has lost money on it already. The estate agent Jordan Fishwick has agreed to sell a similar-sized flat in the neighbouring block for £117,000 - £110,500 less than the original purchase price in April 2005.

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this bit is good.....

QUOTE

When I walk through the corridors it feels like an empty hospital," said Josh Mitchell, 19, a history student at the University of Manchester now living cheaply in palatial surroundings at Albion Mill. "The whole six months I have been here I have only seen one other person living on this floor."

Mitchell's father bought the three-bedroom flat for £170,000 after it was repossessed last year. But it is likely he has lost money on it already. The estate agent Jordan Fishwick has agreed to sell a similar-sized flat in the neighbouring block for £117,000 - £110,500 less than the original purchase price in April 2005.

:P:P:P:P

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I live in Manchester City Centre and there are other schemes like Albion Mill which sit on the outskirts of the city centre - how on earth do people think these flats are worth £200K+

The most amusing part is the protestations by estate agents claiming the shortage of housing stock will hold up prices. A quick walk around the city centre at all the new shiny 'apartment' blocks under construction should answer that

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      • down 5% +
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