Why are prices rising so much and so fast?

abaxas

Just a thought...

With all the ultimate bottom end unmortgagable and unsellable. How do they mix adjust?

If they do no <50k business. Surely this would increase the price even though the index was mix adjusted and prices were going down.

Weird... but maybe true.

IveSeenTheLight

abaxas wrote: »

Just a thought...

With all the ultimate bottom end unmortgagable and unsellable. How do they mix adjust?

If they do no <50k business. Surely this would increase the price even though the index was mix adjusted and prices were going down.

Weird... but maybe true.

Hmmmm, whenever I see methodologies that exclude lower end transactions such as the Register of Scotland Executive Agency where they exclude transactions below £20k, they also exclude higher end transactions above £1 million.

From your thought process, this would result that the average price should actually be higher as I would envisage including transactions over £1million would far more adjust the data than those below £20k.

I think you should take comfort in that if the same criteria is used between set periods, it is a decent enough index for comparison

Cleaver

camper_1982 wrote: »

The government should introduce new measures: -
A independent trained valuer should have to go out and value the house and set a figure for the true price for what it is worth, the seller can either sell at this prie but not go over the said amount, or they can take less if they wish. This would stop homeowners advertising there homes at ludicrous prices and making others push theirs up.

Why stop there? Maybe the governement should value everything that is currently for sale in the whole country and set one standard price for each item. And as another step, why doesn't the government just decide what same wage we all earn which we use to buy these things?

I'll have my overalls in red please comrade. Pass the government issue vodka.

zappahey

baileysbattlebus wrote: »

Here is how they do it - housing characteristics, geographic region etc

If you use the link you need to go to Technical Details and it's all there. Under the heading Latest House Price Index - the last line

http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp

I suppose like the Nationwide, it's not perfect - but consistant

I still wonder if there is a change in the quality mix, that is having an effect on the indices.

If we make the assumption (admittedly fairly big) that the area I watch* is typical, then only the good stuff is selling and anything average or poor just sits there, unloved.

So while the mix of house types may be taken into account in the stats I don't see how they can account for differences in quality.

*Only because we may need to move back there next year.

abaxas

IveSeenTheLight wrote: »

Hmmmm, whenever I see methodologies that exclude lower end transactions such as the Register of Scotland Executive Agency where they exclude transactions below £20k, they also exclude higher end transactions above £1 million.

From your thought process, this would result that the average price should actually be higher as I would envisage including transactions over £1million would far more adjust the data than those below £20k.

I think you should take comfort in that if the same criteria is used between set periods, it is a decent enough index for comparison

I was just thinking how can they mix adjust when there is nothing to mix adjust with?

Also their methodology (from their website) is not a static thing. IE each report is not compatable to previous. Weird but true.

Asheron

People can ask for as much money as they want, doesn't meen someone will buy

Cleaver

Asheron wrote: »

People can ask for as much money as they want, doesn't meen someone will buy

That's just an obvious cliche though isn't it? The Nationwide index appears to show that the price people are willing to pay for houses is going upwards and at quite a rate, so the natural reaction of sellers is to price their places higher on the basis that someone will buy. The OP asked the question why this was.

IveSeenTheLight

abaxas wrote: »

I was just thinking how can they mix adjust when there is nothing to mix adjust with?

Transactions are rising, so more to mix adjust with.
Your talking bo!!ocks

abaxas wrote: »

Also their methodology (from their website) is not a static thing. IE each report is not compatable to previous. Weird but true.

The link I provided ROSEA does not mix adjust at all. It's a simple average of those sold IIRC.

It is weird, but not true as again you are talking bo!!ocks

abaxas

IveSeenTheLight wrote: »

Transactions are rising, so more to mix adjust with.
Your talking bo!!ocks

The link I provided ROSEA does not mix adjust at all. It's a simple average of those sold IIRC.

It is weird, but not true as again you are talking bo!!ocks

Rising transactions != as rising mortgages given by Lloydbos (or whatever it's called).

Running_Horse

camper_1982 wrote: »

Why are prices rising fo fast again.

I suspect that after the credit drought, lenders are more willing to provide mortgages. As multiples increase and % deposit required reduces, I suspect this trend will continue. The only thing I can see preventing it is the economic bubble bursting again after the next election.