Rightmove October 2011 +2.8%

Generali

I think the problem with the Rightmove index is that where house prices are rising, supply and demand theory suggests that more houses will go on the market and fewer sold. Similarly, where prices are falling, fewer houses will go onto the market and more sold.

As a result, Rightmove will always tend to overstate rises and understate falls.

the_flying_pig

HAMISH_MCTAVISH wrote: »

...Basically a few mostly Northern England areas with significant falls are skewing the national indices downwards. But for most people in most places prices are stable or rising...

we've been through this about a zillion times, H.

if the averages are down then lots more places are falling than rising.

this is very, very, basic maths.

Mallotum_X

Really2 wrote: »

I would say it would have been hard for a house listed this month to be sold last month personally?

Asking prices are not a great indicator of housing cost, but they are a forward looking indicator where house sold prices (LR is the only on I think that uses actual sold prices) are backward looking.

Only RM only captures new instructions and not changes to property that is being reduced. Its not even, therefore, a reflection of whats on RM at any given point in time.

But if it makes you happy to think house prices only sell at 8% below initial asking price then fair enough, there will be a near 3% increase in monthly sold prices in a couple of months time then. :cool:

Really2

Mallotum_X wrote: »

But if it makes you happy to think house prices only sell at 8% below initial asking price then fair enough, there will be a near 3% increase in monthly sold prices in a couple of months time then. :cool:

As I said.

Asking prices are not a great indicator of housing cost,

and

We will see what increasing asking prices mean in 3 months or so, it could mean prices rise or the price achieved falls.
But you can't say the gap has increased on this months asking price data as you don't have the sales data.

I don't think I have ever stated there is an exact link between the two?

IveSeenTheLight

Generali wrote: »

I think the problem with the Rightmove index is that where house prices are rising, supply and demand theory suggests that more houses will go on the market and fewer sold. Similarly, where prices are falling, fewer houses will go onto the market and more sold.

As a result, Rightmove will always tend to overstate rises and understate falls.

Asking prices are just one of the basic indexes and can be extremely volitile when looking at a very specific property.

From my own anecdotal, I have just been advised that my offer of 7.5% under the valuation (and asking price) was accepted.

The property does need a little bit of work done to it, but in general, I think I've bagged a bargain.

P.s for those nay sayers, the mortgage interest will be circa £518, whilst the monthly rental will be circa £1200

doire_2

I predict tomorrow the OP (or sibley..... same person really) will post the express headline on this story. A day of frothing will begin

brit1234

I really don't know why asking price figures include existing properties as well as new. This gives it a balanced view on asking prices evening if all asking prices are falling or rising.

As it is, right move is pretty meaningless. Even the estate agents on EAT and Rics September report are concerned with rivals overvaluing and deluded sellers.

Mallotum_X

Really2 wrote: »

I don't think I have ever stated there is an exact link between the two?

Except in the example you gave in post #9 above where you were showing the link.

Really2

Mallotum_X wrote: »

Except in the example you gave in post #9 above where you were showing the link.

That was an example of how this does not change the gap achieved using the data. (you stated it had increased.)

It wold be foolhardy to believe the rise would be identically replicated in sales. I also stated that I did not think it would link directly before you brought me up on it (see 11 vs 4 )
It was just used to highlight that the gap would not grow based on the data.

Likewise I think it would be foolhardy to believe that a rise in asking prices means the difference in price achieved has increased.

shortchanged_2

All this news from Rightmove has really given me hope.

I think I'll put my house on the market for £300,000, even if it is only worth £150,000. Might be able to fool some idiot eh.