Friday, Aug 28, 2015

Drop in transactions is apparently good news for buyers

BBC News: Property sales fall by 15% as market cools, says Land Registry

It would be interesting to see this broken down into BTL, cash buyers, (ideally foreign buyers) etc. In the aftermath of the crash, they said a lack of transactions was bad news for buyers, which made sense. There was not much stock (no forced sellers) and that held prices up. Now, a lack of transactions is supposedly good news, but surely that could just as easily be that people aren't moving (i.e. selling). Anyway, it's from the LR, so old news but it's interesting to hear them say the market is cooling.

Posted by reticent @ 11:02 AM (4519 views)
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1. cyril said...

Doesn't make sense to me - the number of houses selling for 1m+ went down by 20% yet average prices are up. Something weird going on.

Friday, August 28, 2015 04:30PM Report Comment

2. reticent said...

Most indices are mix-adjusted to control for months in which certain kinds of houses are more popular. If memory serves, LR is even smarter in that they look at what a given house sold for last time in order to calculate the appreciation.

If no 1m+ houses are selling it doesn't affect the average price increase (unless they start getting discounted and then do sell).

Friday, August 28, 2015 10:04PM Report Comment

3. libertas said...

A lack of sales could be down to BTL buying and holding.

Saturday, August 29, 2015 01:10PM Report Comment

4. reticent said...

@4 Good to know you occasionally read my posts.

Saturday, August 29, 2015 04:36PM Report Comment

5. reticent said...

Ruddy phone.

Saturday, August 29, 2015 04:37PM Report Comment

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