Can I ask a stupid question?

Cleaver

Sorry, I know I'll probably be mocked for not knowing this, but...

I was looking at that Rightmove report (http://www.rightmove.co.uk/news/files/2010/12/december-2010.pdf) that the Ghoul chap posted up ane noticed the following:

Halifax Average Price: £163k
Nationwide: £164k
Rightmove asking price: £229.

I understand how these prices are made up, Haliwide from mortgages on certain properties and Rightmove on asking prices.

But you'd assume that as 90% of properties are on Rightmove that the average house price through Haliwide would be about 10% less than Rightmove's.

So why is Rightmove 40% higher than Haliwide?

Graham_Devon

Because rightmove only takes the initial asking price into consideration. And most properties initial asking prices are based on the highest possible.

PasturesNew

Halifax and Nationwide go on mortgages... and I think Nationwide's demographic is poorer people ... and Halifax' is more oop North .... so, most of their mortgages might exclude a lot of London/South East properties maybe. And maybe the posher gaffs are paid for in cash, not mortgage - from furreners (in London) ... er, maybe.

Guessing though.

Cleaver

Graham_Devon wrote: »

Because rightmove only takes the initial asking price into consideration. And most properties initial asking prices are based on the highest possible.

I understand that, but the average discount from asking price to sale price isn't 40% is it? More like 10%. So it must be something else.

Cleaver

PasturesNew wrote: »

Halifax and Nationwide go on mortgages... and I think Nationwide's demographic is poorer people ... and Halifax' is more oop North .... so, most of their mortgages might exclude a lot of London/South East properties maybe. And maybe the posher gaffs are paid for in cash, not mortgage - from furreners (in London) ... er, maybe.

Guessing though.

I dunno either. So that would make Rightmove's index a lot more accurate? Just take off about 10% to take account of bargining and that's your average price?

sjaypink

Cleaver wrote: »

But you'd assume that as 90% of properties are on Rightmove that the average house price through Haliwide would be about 10% less than Rightmove's.

Well spotted (& def not a stupid question!)

I would have thought it would be closer than 10% - as I guess most of the 10% not on RM are auctions and the like, which aren't in Haliwide figures are they?

ETA: RE Devs post- are sellers really reducing prices (from initial marketing value) - or are buyers haggling down - by 40%? :eek: doesn't sound right.... :cool:

Really2

Cleaver wrote: »

So why is Rightmove 40% higher than Haliwide?

Raw data, it is not mixed adjusted etc.

It is Total asking price of houses / Number of Houses listed I believe.

It is unsomthed in any way I believe.

Generali

Cleaver wrote: »

Sorry, I know I'll probably be mocked for not knowing this, but...

Halifax Average Price: £163k
Nationwide: £164k
Rightmove asking price: £229.

I understand how these prices are made up, Haliwide from mortgages on certain properties and Rightmove on asking prices.

So why is Rightmove 40% higher than Haliwide?

Rightmove (and Acadametrics) use an arithmetic mean of prices whereas Haliwide use a geometric mean is the reason I think. Haliwide look to smooth the figures as much as possible, the others are not.

PasturesNew

Cleaver wrote: »

I dunno either. So that would make Rightmove's index a lot more accurate? Just take off about 10% to take account of bargining and that's your average price?

It depends where you live. If you live in the heart of Halifax/Nationwide land and earn the sort of wages their customers do ... and if you're buying the sort of house that people buy with mortgages, then theirs would be right.

If you're more southerly, perhaps paying cash, then maybe RM is right.

Cleaver

sjaypink wrote: »

Well spotted (& def not a stupid question!)

I would have thought it would be closer than 10% - as I guess most of the 10% not on RM are auctions and the like, which aren't in Haliwide figures are they?

ETA: RE Devs post- are sellers really reducing prices (from initial marketing value) - or are buyers haggling down - by 40%? :eek: doesn't sound right.... :cool:

I'm sure I've seen something on here before that states the average discount from asking to actual is around 8%, and I'm sure that was in 2008 when things were a bit rubbishy for sellers.

Hamish will be along within the hour to help me out.

PasturesNew

Generali wrote: »

Rightmove (and Acadametrics) use an arithmetic mean of prices whereas Haliwide use a geometric mean is the reason I think. Haliwide look to smooth the figures as much as possible, the others are not.

There's always one posh, knowitall geezer