Thursday, August 20, 2009

This must mean sales are up then!!

Home sales in 44pc drop

Sales of homes in Telford are down by more than 40 per cent on last year, a county estate agent revealed today.

Posted by mark @ 09:28 AM (1265 views)
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13 thoughts on “This must mean sales are up then!!

  • “The value of some homes across the region has also dropped by up to 40 per cent, but detached homes in Wellington have gone up by about one per cent”.

    This statement is quite thought provoking. Does it mean that society is polarising into the haves/have nots, or does it mean that lower grade housing appreciated more than high grade housing, in the boom? I think a bit of both but probably more the later.

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  • i live in telford,madeley ,and a lot of people are being made redundent
    house prices here have a lot further to fall , most jobs here only pay between 12k and 16k a year
    in 1999 you could buy a nice 3 bed house for 40k now the same place will cost 130k despite recent falls
    a guy i worked with bought a 3 bed for 20k in 1998 and sold for 160k in 2007

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  • “Telford’s change” ?

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  • I read in the North Wales Daily Post last night that first time buyers are having difficulty getting on the “ladder” in Rhyl, with an average wage of 25K… where do these people get their figures from? Average wage levels cannot be anywhere near that level in North Wales… Or am I missing something? As SeanB @ 2 states, average levels are more like 12 – 16K and perhaps a lot less in that Shite hole of drug den near the coast…. 3 times that level doesn’t buy you a great deal, even in Rhyl…..

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  • greenshootsandleaves says:

    The asking prices doubtless went up, though, so all is well.

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  • Flashman, I like your point about lower grade housing rising more than it should have but I can tell you without doubt or hesitation that Detached house prices in Wellington have not gone up 1% because I have been watching prices thre for a long long time. It might be true to say that the average price of a detached house that has been sold is 1% higher but if only the more expensive houses are bering sold then the average will of course reflect this. If you track the asking prices at the estate agents for the SAME houses month on month or year on year, you will not find one that has increased in price. I would like to know the volume of houses sold which the land registry will tell you (albeit very late) is very very low.

    There is a house on the Holyhead road that went on the market probably a year or so ago for £500,000 which has just be reduced to £420,000. Roslyn ROad, another “saught after area” has seen a number of houses remain for sale for a good year. The only sale I have seen through is a detached house starting at 420k falling to 360k before an offer wasw made, probably around 350k.

    A detached bungalow on ALbert Road, a nice area, comes in at £185k down from 225k well over a year ago and no takers.

    Also, the use of the average is such a waste of time here as it can easily distort reality. Even a 16 yera old school kid can tell you the most obvious problems.

    By the way, I imagine the average wage across Telford is about 20k and a standard semi in a area not considered as affluent was pushing £150k at the peak. The x-council houses in Wellington were, get this, selling for up to 140k and at least 125k for the lesser ones!!!! When I grew up these houses were for the super low income and now 6-7 times the average income for the area but the average incomes should not ordinarily have been buying these houses. Oh, and a 2 bed (what a joke, more like 1.5 bed) flat in wellington giong for £140k last year, come on. The question I ask is, where does the money come from? The answer: it doesn’t and it isn’t there and never has been.

    My calculations/estimations suggest that the average asking price in Wellington has fallen about 20% from the peak. It remains to be seen what the actual prices went through as. We will have to wait to see the LR info later on. I would have thought that sale prices are about 5% below this level, meaning real house price sale values are about 24% less than the sking prices. Also there are houses that have been on the market for way ver a year, some approaching 500 days on property snake!

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  • Another thing, proeprties are flooding back onto the market on rightmove which will drive down prices but there are still guys likie this:

    http://www.rightmove.co.uk/property-for-sale/property-20801495.html?locationIdentifier=REGION%5E26072&maxPrice=150000&pageNumber=6&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DREGION%255E26072%26maxPrice%3D150000%26index%3D50

    I think I am right in saying the price was about 118k 18 months ago. YOu can get a two bed terrace for this easily now in a much better area. In fact a 3 bed terrace in at leat an equal area!

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  • brickormortis
    do you mean the flats at the whitehouse hotel?i think they are all owned by btl’s , also they are really badly built
    my brother said the develeper went bust and then they were taken on by another construction company who made a bit of a mess of things
    by the way my parents own the half way house (wrekin cottage is the correct name)
    so i lived quit close to wellington
    the house i decribed earlier , bought for 20k sold for 160k ,is on wrekin road opposite hadriens flats

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  • brickormortis: It’s always good to hear stories from the front. They are worth a thousand economic reports. Your anecdotal evidence rings true.

    My theory is that the fabled Manchester city centre flats (and their kind) depreciated as much as they did because they were specifically designed and built to leverage the boom. They were not actually very good houses, so they suffered more than most when the music stopped. On the other hand, really good houses have a larger proportion of genuine value so they might fall less than crappy houses. Another factor: – when there is a boom, almost everyone wants to join in. The lower grade houses are cheaper so they give access to a far higher % of the population (non boom- time mortgage lending criteria, excludes large numbers of people on lower incomes). When high numbers of people chase an asset, prices spiral, hence the over valuation of lower grade houses

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  • How dare they book the glorious leaders recovereh? Do they not know the wheat harvest is up 20% and tractor output has doubled?

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  • brickormortis says:

    Flashman, you have nailed somethign that is very very true!

    Seanb303, there are numerous examples of flats at least trying to sell for 130k and some come cases actually selling. Wellington swimming baths flats for one, the old bear factory whose name escapes me (very tiny) as well as flats behind aldi and morrisons!!!

    THe whitehouse hotel flats I believe, had some one beds getting around 110k to 115k (correct me if I am wrong) which sold in no time! If you are familiar with the area and the football stadium regeneration (ha ha) then you will know the houses opposite the whitehouse hotel flats. They were asking £139,999 for one of those houses (3/4 bed with attic conversion right on the traffic lights. After reducing the price eventually down to £99,999 about 3 months ago they got a sale, probably for about £95,000. How does that value the flats?

    Sorry about all the anecdotal evidence but in the face of meaningless averages, it would be nice to here more as, believe it or not, these stories are far more useful in indicating what is happenign on the ground.

    There are definately some sales happenign but take a look at somewhere like ironbridge where many many houses just won’t sell despite being a world heritage site.

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  • Brickormortis says:

    bluebeach, is that average wage after drug deals and tax evasion? 25k, where does that come from, that is the UK average right?

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  • I know of people who have brought in this area about 8 years ago for 40k and would now be worth around 120k and the wages didn’t go up in line at all, 60k would be reasonable IMO

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