Value Of Homes Sold At Auction Plummet 17 Per Cent

[Ash4781]

http://ftadviser.com/FTAdviser/Mortgages/N...17-per-cent.jsp

According to research by Liberal Democrat Treasury spokesperson Lord Oakeshott, the average value of houses sold at auction between March and May was 17 per cent lower than during the same period last year.

The figures, based on the sale price of 4,748 properties from around the UK, showed a fall from an average of £169,200 to £140,500.

The annual price fall accelerated to 18.5 per cent in May.

Between March and May 57 per cent of all properties offered at auction were sold, raising £667m against a sale rate of 74 per cent the year before.

Lord Oakeshott said: "Auctions are the sharp end of the housing market where real deals show the prices paid by real buyers. The published house price indices are well behind the game.

"Property professionals are pricing in a 16.5 per cent fall in the Halifax House Price Index over the next year and 26.5 per cent over the next three years.

"Ministers must wake up now and let housing associations and councils buy empty homes for social housing to rent."

At what point during the last crash did 'government' (various levels) come in and by up property for social housing setting a market price ?

Or did this not happen ?

Edited July 9, 2008 by Ash4781

[FreeTrader]

Makes you laugh how they dress this up as “research by Liberal Democrat Treasury spokesperson Lord Oakeshott”. Someone went to this page and punched in a few numbers from the second table down (the blue one).

Oh, and it looks like they got it wrong. By my calcs the drop is from £174,031 (£1,028,525,970/5910) not £169,200, so it's actually worse than stated. The fall is 19.3%, not 17%.