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Debate House Prices


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Actual Data: 45% reductions in Prices

zcacmxi
zcacmxi Posts: 136 Forumite
in Debate House Prices & the Economy
I think the mainstream house indexes are a few months behind... See what's to come in the next few months. The latest auctions results from Allsops here: http://www.auction.co.uk/residential/pastResults.asp?A=582

An example. Lot 704 sold for £120,000 at auction last week.

It last sold for £153,000 in Q1 2003 (http://www.houseprices.co.uk/e.php?q=BR2+0AL). Using Nationwide HPI to extrapolate what it would be worth at the peak Q4 2007, you get £220,000.

So, £220,000 down £120,000. That's just over 45%.

This is just one example from that list. I'm sure there are a lot more.

Comments

  • zcacmxi
    zcacmxi Posts: 136 Forumite
    In fact, there are ones that lost more. I've calculated a reduction of 50%. Lot 713. New build flat in East Dulwich.
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    Beautiful! :-) :-) :)
  • hethmar
    hethmar Posts: 10,678 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Car Insurance Carver!
    Allsops are really giving low guide prices though arent they :) I just went to look at one I had my eye on - at £100k guide price, tatty 2 bed bung but in an area I know well - it raised £175k.

    I guess they are being quite clever at drawing in the bidders.
  • phil_b_2
    phil_b_2 Posts: 995 Forumite
    I regularly check these auction results now, and look at houses in the places I could realistically live which sold for nearest to my budget.

    I'd expect Iwould see some bargains but they all always grim looking cr@apy ones. All the sh!tters go to auction. I'm yet to see anything I would entertain buying, even at the cheaper prices.

    Show me some meaningful reductions on properties I would actually buy and I'll take notice :)
  • hethmar
    hethmar Posts: 10,678 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Car Insurance Carver!
    Well thats is the problem Phil - the places that go to auction do tend to be those that are in the bad areas and/or in bad condition. I expect there must be a few gems there though.
  • zcacmxi
    zcacmxi Posts: 136 Forumite
    Agreed, the majority of property that ends up at auction does need more work than property being sold by estate agents.

    However, it does vary between lots. Lot 713 above for example is a new build flat. It is unlikely to need more than a lick of paint.

    If the choice was between spending £240K on one of those via Foxtons in East Dulwich or picking one up at this auction for £120K, financially it would make a lot of sense to consider.

    Lately, I've seen property requiring a lot of work via estate agents too. Usually it's probate stuff that was previously snapped up by their builder/developer contacts.

    Due to downturn the developers are not interested, so now they even offer to normal mugs like me!
  • phil_b_2
    phil_b_2 Posts: 995 Forumite
    hey, I'm not against properties which need a lot of work internally. That would be quite good actually.

    It's the plethora of those in horrible areas which look terrible outside which plague auctions. The exterior is quite important to me, I like some good curb appeal. You can fix internals but there's often not a lot you can do about the outside and deffo nothing you can do about the rest of the street.
  • zcacmxi
    zcacmxi Posts: 136 Forumite
    In a boom days last year, Allsops were hosting a residential auction with ~ 200 lots every 2 months. Recently, they're hosting auctions multiple times per month with ~ 700 lots per auction.

    There are also many other auction houses that have sprung up to cope with the increase in repos. I'd say that not only "ugly / bad" streets contain houses that end up at auction. Many are not that desirable, but it's worth scanning them once a month on the off chance that something decent comes up.

    Trusts/Corporates also use auctions to dispose of properties quickly, not all of it is nasty!
  • hethmar
    hethmar Posts: 10,678 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Car Insurance Carver!
    Yes, its worth keeping an eye out. I do wish that I could work out which auctioneers would have properties in the areas I am interested in though. :)
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