Thursday, January 24, 2008

Bubble bubble bubble ble ble ble ble… pssssssss… bbbang!!

Average Aberdeen house price now over £200k

The average house price in Aberdeen in the fourth quarter of last year fell by 4% to £199,589. Overall, however, the average price rose by 26% to £202,479 over the year. The latest research by Aberdeen City Council shows that 8,594 properties were sold through in 2007, 3342 more than the previous year. Whoooopp! In 1997 the price/earnings ratio for Aberdeen was 3.72 and is now 7.83. The corresponding rises for Scotland are 3.38 to 6.12 and for the UK 3.58 to 9.19 (so sustainable!!). The average price of a detached house in Aberdeen's west end over last year was £675,450. Sure, sure... bbbanngggggg!!!

Posted by confused76 @ 04:33 PM (1280 views)
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10 thoughts on “Bubble bubble bubble ble ble ble ble… pssssssss… bbbang!!

  • fueled by oil???

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  • Cheekie Charlie says:

    Going going gone with the oil

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  • have you got any house price crash tablets you could make loads selling them. this is dire . day by day i work this out , oh dear dear , please raise interest rates to say 10% this would stop all the outside money from running away and give us time to change a generation that these bankers are a fraud and pay back some of our national debts . we would need some fall back in re housing but coluld not the council drive cheaper rents of landlords knowing they are going down the pan. then rent them back to the people . every which way is dire. but surely surely the truth may hurt but it is the most honest sincere answer to our problems .. this way the english live to fight . your way we are buried. give your children a chance to fight.

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  • I remember Aberdeen being very badly hit by falls in property prices in the early 1980’s or so, which is probably why Aberdeen council is so interested in this sort of data.

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  • @mark: I personally live in Aberdeen, and have seen this boom from start to finish. Everone thinks it’ll never go down (the more people say that the sooner it will). I worry that the Oil industry up here will keep prises more sustainable, but not growing. I also think that people here in scotland won’t get as much warning of a crash as the rest of the UK for one simple reason……..they all look at the “offers over” price, which rarely changes. The only thing that changes is the amount offered above that price, but nobody seems to take notice of this. For example, Joe Bloggs has a house on the market for “offers over” £150,000. He was told he would get approx 30% more than this by the time the deal goes through…….fast forward 3-4 month….the market has cooled…now his solicitor says he’ll most likely only get 20-25% above his “O/O”…..so does he reduce that “O/O” figure???? oh no no no, he continues to keep it where it is to get the best offer. So how low does the market have to come down before the “offers over” figures (which is all that you get to see ni any estate agents window or paper) come down too??? At the point when people have to lower their “offers over” figure, that will be when the panic sets in I think, and things will start to tumble down even faster due to low confidence.

    Does that make sense, or am i talking some basic garbage?

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  • who stole my pension? says:

    It is fuelled by the oil price…. but the oil is fast running out, as Gordon may have noticed last year when the country almost ran out of gas! So it may go up for now but then it will go banggggggggggggg when people realise that oil is $200/barrel but Aberdeen has none!

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  • japanese uncle says:

    This frenzy will be short-lived just until the collapse of the oil bubble.

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  • “…the collapse of the oil bubble.”

    Not sure I agree with you JU, on this point. Oil prices are a result of $ inflation, which is about to get a lot, lot worse. Oil @ $150 by 2009.

    However, Aberdeen HPI are definitely an unsustainable bubble. Watch out below…

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  • Going by the above comments, is everyone saying that if (when) uk property crashes, that aberdeen may not come down with it due to the oil industry still growing??? If thats the case, who’s going to keep buying at higher and higher prices. I work in the oil industry, and salaries ain’t growing near fast enough to keep up with this pace. Either way, i’m not stepping into the market for a few years. Would you, if you lived here?

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  • Cannot speak for Aberdeen but further north prices starting to stagnate,people are not fooled anymore with the hipe and to be quite honest i think it is starting to turn into a very old dinner table subject with people, as they see the good times are over and the horror stories begin to surface,many houses up north over £200 000 been on market now for nearly a year and still they expect silly prices, for many the boat has sailed!as for Aberdeen the whole city is a ripp off, Scotlands version of London. Bring on the crash and get the dead wood sorted out.

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