Can I ask a stupid question?

ukcarper

Kensington & Chelsea land registry £862k in October, Rightmove £1850 in Nov.

Cleaver

Graham_Devon wrote: »

But obviously this is crazy, and I'm just thinking all this and don't actually have a clue.

I think you're right Graham on reflection, it probably does add a decent amount of difference. Sorry for snapping, you were only trying to help.

I just can't get the 40% thing, and it annoys me when I can't work stuff out.

Let's say there are ten houses that go on to RM, all at £200k.

Houses 1 and 2 are ace and sell at asking.
House 2 is pretty damn nice and sells for £195k after some haggling.
The buyers of 4, 5 an 6 drive a bit of a deal and get 10% off so buy for £180k.
Buyers of 7 and 8 were very savy and got a massive 35% off asking, after the sellers did a few reductions. So all sold for £130k.
Houses 9 and 10 didn't sell.

Rightmove would have the average price of £200k.

Forgetting all the seasonally adjusted stuff, Haliwide would have an average sold price of around £174k.

That seems realistic to me and would mean that RM was about 15% higher than Haliwide, which feels correct to me. So still don't get the 40%.

HAMISHHHH!!! ARE YOU THERE??!?!? ARE YOU SNOWED IN?!!??! PLLEASSEE!!! HELP ME!!!!

Really2

Malcolm. wrote: »

The rightmove figures are not in keeping with land registry figures. I expect the answer to the OP lies in rightmove's calculation basis.

229k, on the face of it, seems to be too high.

House Price Index

October 2010: 265.4
(January 1995: 100)

Average price £165,505

Change Monthly -0.8% Annual 3.4%

Next index: 11am on
30 December 2010.
http://www1.landregistry.gov.uk/houseprices/

I agree and Gen point me out if I am wrong. (anyone can as this example is way over simplyfied)
But lets use my 3 bed semi again as an average.
LR would work out the average for each area (say county) then divide that by number of areas (county's)
RM just add together all similar semis then divide that by the number of them.
It takes no account for area so the south east makes the RM index look higher as there is a higher proportion of property and at a higher price.

Low transactions and low hose prices in the NE have little effect on RM but they have a greater effect on LR etc.

JonnyBravo

Cleaver wrote: »

HAMISHHHH!!! ARE YOU THERE??!?!? ARE YOU SNOWED IN?!!??! PLLEASSEE!!! HELP ME!!!!

Hamish?

I told you the answer a couple of posts ago.
Calm down dear its only an index.

Cleaver

Really2 wrote: »

Low transactions and low hose prices in the NE have little effect on RM but they have a greater effect on LR etc.

Makes it cheaper to water your garden though.

Cleaver

JonnyBravo wrote: »

Hamish?

I told you the answer a couple of posts ago.
Calm down dear its only an index.

You did and I gave it a lovely little thanks. Still don't get the 40% difference though.

JonnyBravo

Cleaver wrote: »

You did and I gave it a lovely little thanks. Still don't get the 40% difference though.

<sigh>

<sigh again as one sigh isnt 10 characters long>

Malcolm.

Malcolm. wrote: »

The rightmove figures are not in keeping with land registry figures. I expect the answer to the OP lies in rightmove's calculation basis.

229k, on the face of it, seems to be too high.

House Price Index

October 2010: 265.4
(January 1995: 100)

Average price £165,505

Change Monthly -0.8% Annual 3.4%

Next index: 11am on
30 December 2010.
http://www1.landregistry.gov.uk/houseprices/

I believe the Land Registry figures which concur with Halifax and Nationwide. The Rightmove basis must be different.

Rightmove could (a) multiple count properties that are listed through more than one estate agent, (b) appears to exclude scotland (haven't checked whether others do, (c) recount listings which are taken off to reappear later (d) not account for discounts.

I do like a puzzle, however without access rightmove's raw data and methodology, it's difficult to be certain.

sjaypink

JonnyBravo wrote: »

Haliwide are publishing an "average house" price, and their methodology is set up to reflect this.
In other words they are trying to establish the value of an average type of house.

This is very different to establishing the "average house price". ie the average price of houses sold which is where many other indices are heading. (inc Rightmove - but yes this is "average asking price")

That is the main difference for the large discrepancy. Whilst it may appear they are measuring the same thing, they are not.

You mean Haliwide take out all the country mansions and plush city penthouses? Or skew the figures towards 3 bed semis etc?

ETA: But hang on, LR is way off RM figures but would still include these wouldn't it?

Really2

Cleaver wrote: »

Makes it cheaper to water your garden though.

I use a ho to agitate my soil. Lot easier than doing it myself.