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Debate House Prices
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North West England
Comments
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Dream on........35 - 40k,perhaps you wanna live in street where the other houses are boarded up.
To be fair to jimmy31, you can get something in the rougher areas for that kind of money.
But those houses now selling for 40K only sold for 50K or 60K in 2007. It's a big drop, but it ain't 20% a year.Pay another 20k on top and you can probably live in a neighbourhood of some sort.
Well, even at 60K, there are plenty of areas up north where you wouldn't want to live. And again, those houses would have sold for 80K or 85K at peak. A big drop, but not 20% a year.The house hasn't 'lost' £20k of value in a year, the seller has reduced the asking price by £20k because no one is willing or able to buy at the higher price.
That doesnt change the fact that the house is now 20% cheaper than it was originally priced at so in my tiny mind ive saved myself a few quid by waiting.
Asking prices in my area have seen 20% drops in the last 12 months and most are still not selling.
And in the spirit of being fair to jimmy, I'll agree with most of that.
BUT......
I'd also hope jimmy will now concede that doesn't mean actual sold prices in his area have fallen by 20% in a year. Because we can look at the various actual sold price indices and see that 3% to 5% price falls per year is a more realistic figure for the North West.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Yes i have said i dont know the exact data on what the sold prices in my area are, lots of houses that were up for 150k 12 months ago in my area are now up for 120,125k and obviously nobody is paying the asking prices for these houses, so i can only guess at what they are selling for and i presume it is somewhere below the 120k/125k mark, for those that sell that is.
It is possible to come to the conclusion that housing in an area is getting cheaper by watching asking prices fall.0 -
Yes i have said i dont know the exact data on what the sold prices in my area are, lots of houses that were up for 150k 12 months ago in my area are now up for 120,125k and obviously nobody is paying the asking prices for these houses, so i can only guess at what they are selling for and i presume it is somewhere below the 120k/125k mark, for those that sell that is.
It is possible to come to the conclusion that housing in an area is getting cheaper by watching asking prices fall.
Have you tried http://www.nethouseprices.com/index.php?con=sold_prices_street&cCode=EW&outcode=GU12&incode=5HP to see what houses in the streets you are interested in have sold for.0 -
It is possible to come to the conclusion that housing in an area is getting cheaper by watching asking prices fall.
It is possible to come to that conclusion. And in most cases it'll be a reasonable assumption to make. But it won't give an accurate picture of by how much.
I don't dispute that actual sold house prices in your area may have fallen in the last year. I do dispute that they're falling by 20% a year though....
And it's actual sold prices that matter.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »It is possible to come to that conclusion. And in most cases it'll be a reasonable assumption to make. But it won't give an accurate picture of by how much.
I don't dispute that actual sold house prices in your area may have fallen in the last year. I do dispute that they're falling by 20% a year though....
And it's actual sold prices that matter.
I know its sold prices that matter, and i also know if asking prices have fell then the sold price will fall.
I think its just because i have quite a simplistic view of the housing market that a lot of people are having a problem with what i say, My way of buying a house is to look in the EAs window and decide if the asking prices are low enough for me to start making offers, if they are low enough i will make an offer, if they are not low enough then i keep waiting, thats pretty much it.0 -
I know its sold prices that matter, and i also know if asking prices have fell then the sold price will fall.
Usually (although not in all cases), but the point we are making is that sold prices are not falling by the same amount as asking prices.I think its just because i have quite a simplistic view of the housing market that a lot of people are having a problem with what i say.
No, I think it's because your original statements were a bit misleading.
If you claim prices are falling by 20% a year, most people assume you're discussing actual sold prices, not relatively meaningless asking prices.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Usually (although not in all cases), but the point we are making is that sold prices are not falling by the same amount as asking prices.
No, I think it's because your original statements were a bit misleading.
If you claim prices are falling by 20% a year, most people assume you're discussing actual sold prices, not relatively meaningless asking prices.
The way i look at it, if a house is advertised at 150k then to me i have pretty much no chance of somebody accepting an offer of 100k for that house.
If the same house has dropped in price to 120k/130k i have a better chance of somebody accepting a lowball offer of 100k.
That is why i am happy that asking prices in my area are dropping.
I agree that asking prices are pretty meaningless but these are the prices i have to start negotiating from because its what the seller hopes to get (plus or minus a few k) for their house.0 -
RenovationMan wrote: »Surely you can only save money if you actually purchased the house, and even then only if you were willing to pay the original asking price but the vendor reduced it?
Otherwise you would be a millionaire by now with the amount you've saved from falling house prices in the North West.
Yes i am aware that the only true way to find out the exact amount of savings is to actually buy the house, that being said i didnt buy a house in 2007 but i know for a fact that i have saved a lot of money by holding off from buying due to the large drop in asking prices (i dont know the exact figure to the nearest pound but i do know i have saved money)0 -
Graham_Devon wrote: »Starting new threads like this only gives evidence to what I said about Hamish trying to get the upper hand.
And failing.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
The way i look at it, if a house is advertised at 150k then to me i have pretty much no chance of somebody accepting an offer of 100k for that house.
If the same house has dropped in price to 120k/130k i have a better chance of somebody accepting a lowball offer of 100k.
That is why i am happy that asking prices in my area are dropping.
I can see why you'd think that, but from what we've seen with actual sold prices, it doesn't seem to work that way in the real world.
What tends to happen is that the percentage of asking price achieved increases after an asking price reduction.
So if a house starts off at 150K, and then reduces to 130K, it tends to sell for more like 125K...... Not 100K.I agree that asking prices are pretty meaningless but these are the prices i have to start negotiating from because its what the seller hopes to get (plus or minus a few k) for their house.
Sure.
Just so long as we're clear that does not mean house prices in your area have fallen by 20% in a year. So running around the boards claiming that just makes you look a bit daft.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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