Friday, August 28, 2015
Drop in transactions is apparently good news for buyers
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 (4601 views)
5 thoughts on “Drop in transactions is apparently good news for buyers”
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cyril says:
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.
reticent says:
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).
libertas says:
A lack of sales could be down to BTL buying and holding.
reticent says:
@4 Good to know you occasionally read my posts.
reticent says:
Ruddy phone.