Bellway results out

nollag2006

Profits up 50%. Strong predictions for the overall market in the immediate future

http://www.bbc.co.uk/news/business-15347199


But but I thought that house prices could only fall?

I am still holding all my wealth in shiny sparkly metals and waiting for the 50% house price crash by Christmas 2009

Really2

I find this bit interesting.

The number of houses sold increased 7% to 4,922, with the average price up 8% to £175,613.

Newbuilds offer funding incentives etc, so if having funding available means newbuilds are increasing in value.

Does that not show there is demand outhere? and that mortgage availability is one of the main issues not the price?

Graham_Devon

Really2 wrote: »

I find this bit interesting.


Newbuilds offer funding incentives etc, so if having funding available means newbuilds are increasing in value.

Does that not show there is demand outhere? and that mortgage availability is one of the main issues not the price?

Average price has actually gone down since June.

And it doesn't neccesarily mean anything you have said....as Bellway state themselves on 10th June 2011...

The average selling price rose 4% to £182,000, helped by more higher-value units being sold in and around London.

http://www.bbc.co.uk/news/business-15347199

A lot of things can change the average house price when you are talking such small numbers in relative terms.

In March their average house price was £145,000.

In February their average house price was £168,000.

Jumping around like a yo-yo due to locations and plots etc.

Really2

But not decreasing slightly like older houses?
My point is still there as newbuilds are outperforming older houses, saying they jump or down does not get past the fact. they increased on average over a year when other house prices were stagnant/falling.

I think other builders have shown similar rises in value and volumes.

Graham_Devon

Really2 wrote: »

But not decreasing slightly like older houses?
My point is still there as newbuilds are outperforming older houses, saying they jump or down does not get past the fact. they increased on average over a year when other house prices were stagnant/falling.

I think other builders have shown similar rises in value.

They did increase when comparing two points in a year.

They could fall back to £150,000 next month though depending on what they sell and where. Hence highlighting the volitality in the monthly average house prices from Bellway.

Pick the months correct and you can suggest anything you like, from whatever viewpoint you like.

MrRee_2

The only time House prices were a bargain was Autumn 2009 .... with hindsight I should have bought then - but, didn't!

They will never be as low in price again ..... I do feel for those renting and paying someone elses mortgage for them - especially if they are/were hoping for big falls - the crash is a figment of some imaginations.

Mallotum_X

Really2 wrote: »

But not decreasing slightly like older houses?
My point is still there as newbuilds are outperforming older houses, saying they jump or down does not get past the fact. they increased on average over a year when other house prices were stagnant/falling.

I think other builders have shown similar rises in value.

Missing the point that even Bellway spell out, the mix of property this year has sold at a higher average price than the mix sold last year. Unless you ask them to adjust for location/property type then the absolute average is not very insightful.

Yes there are some indications of recovery for Bellway that can be taken from this, what we dont know however is whether they have made changes within their organisation to cut costs. Without looking at the actual accounts we cant really draw out much analysis at all.

It would be very strange if the builders hadn't reacted to the current market. If there are locations where property is still selling then they will focus their building efforts there. They are not going to stick up a load of new builds in areas suffering the most. So whilst the results give a good indication of the health of Bellway, without some actual analysis it doesnt really offer any insight into the housing market as a whole - as they dont operate in the whole market.

Really2

Mallotum_X wrote: »

Missing the point that even Bellway spell out, the mix of property this year has sold at a higher average price than the mix sold last year. Unless you ask them to adjust for location/property type then the absolute average is not vrey insightful.

Yes there are some indications of recovery for Bellway that can be taken from this, what we dont know however is whether they have made changes within their organisation to cut costs. Without looking at the actual accounts we cant really draw out much analysis at all.

It would be very strange if the builders hadn't reacted to the current market. If there are locations where property is still selling then they will focus their building efforts there. They are not going to stick up a load of new builds in areas suffering the most. So whilst the results give a good indication of the health of Bellway, without some actual analysis sit doesnt really offer any insight into the housing market as a whole - as they dont operate in the whole market.

You seem to ignore that TW and persimmon all posted increased house prices. So how is it missing the point?
And even if it is like for like sales are still up also (more houses being sold)

So is it the south is the only place buying at the moment? I would find that odd as build near me has increased greatly.

Graham_Devon

Mallotum_X wrote: »

Missing the point that even Bellway spell out, the mix of property this year has sold at a higher average price than the mix sold last year. Unless you ask them to adjust for location/property type then the absolute average is not very insightful.

Bellway state:

The UK's fourth biggest housebuilder said its six northern divisions legally completed the sale of 2,345 homes in the year to July 31, an increase of 18% on the previous year on prices broadly similar to last year.

While the southern divisions' average selling price increased by 13.1% to £203,973, sales volumes remained broadly static at 2,577.

So more houses built in the London area = increasing profits.

You don't have to read too far between the lines to figure it out.

Other housebuilders, such as Taylor Wimpey have stated they are building a higher proportion of 3 and 4 bed homes as they cannot sell 1-2 beds.

Really2

Graham_Devon wrote: »

They did increase when comparing two points in a year.

An average over the year seems to indicate

Total revenue / total sold = average house price.

Not a point to point calculation.

Really2

Graham_Devon wrote: »

Bellway state:

The UK's fourth biggest housebuilder said its six northern divisions legally completed the sale of 2,345 homes in the year to July 31, an increase of 18% on the previous year on prices broadly similar to last year.

While the southern divisions' average selling price increased by 13.1% to £203,973, sales volumes remained broadly static at 2,577.

So more houses built in the London area = increasing profits.

You don't have to read too far between the lines to figure it out.

Other housebuilders, such as Taylor Wimpey have stated they are building a higher proportion of 3 and 4 bed homes as they cannot sell 1-2 beds.

It states an increase of 18% in builds in the north at a fairly static price.
To my mind general house prices have been falling in the north and static to falling sales.

No one is still giving a reason why the disparity between older houses.

No newbuilds showing falls and sales increasing greatly. Not replicated in the general market.
I can't think of another reason other than demand there if the credit is there? and no one else has popped up with a reason either?