People will adjust their spending habits in order to afford their mortgage

ukcarper

Graham_Devon wrote: »

It makes no difference, regardless of your attempted put downs.

If the average price rises 15%, the average price rises 15%.

It doesn't matter how many houses they sold or what type. The average price is still up 15%.

If you start breaking that figure down, as per the land registry into detached, semi detached etc, then it will make a difference there and in that case will drag up the average of older properties of the same makeup, but to the national overall figure, it makes no difference, no matter how many colour fridge magnets or crayons you use.

Bovis sell 80 flats at £1 and 20 houses at £1.50 average price £1.10p.

Now they sell 50 flats at £1 and 50 houses at £1.50 average price £1.25 .

Average price of sold property increased but individual price still the same.

OffGridLiving

Graham_Devon wrote: »

It makes no difference, regardless of your attempted put downs.

If the average price rises 15%, the average price rises 15%.

It doesn't matter how many houses they sold or what type. The average price is still up 15%.

If you start breaking that figure down, as per the land registry into detached, semi detached etc, then it will make a difference there and in that case will drag up the average of older properties of the same makeup, but to the national overall figure, it makes no difference, no matter how many colour fridge magnets or crayons you use.

I'll have a go at fielding this one chaps.

So, if Bovis built a series of 2 bed apartments and sold them all for an average selling price of £100k, then the following year they decide to build a series of 4 bed detached houses and sold them all for an average price of £115,000. This means that their average selling price has gone up 15% from last year.

What hasn't happened is that they built a series of 2 bed apartments and sold them all for an average selling price of £100k, then the following year they build another series of 2 bed apartments and sold them all for an average selling price of £115,000.

Graham_Devon

wotsthat wrote: »

There might be a correlation between new/ existing prices but there's no causation.

I don't pay more for a house just because a different house sold for more.

That's exactly what you do. One of the fundamental pricing instruments for valuers is how much other properties are selling for in the local area.

So if other houses in the area are seeing their prices increase, so will the one you are buying.

Graham_Devon

ukcarper wrote: »

Bovis sell 80 flats at £1 and 20 houses at £1.50 average price £1.10p.

Now they sell 50 flats at £1 and 50 houses at £1.50 average price £1.25 .

Average price of sold property increased but individual price still the same.

Yer - I don't think you quite get the point here and I'm not sure how else I can explain it.

It would, however, quite frankly astound me if you guys didn't get the point here.

You can come up with all manner of examples, but the point still stands that the average price is up and that is all that matters unless you start breaking it down....and it doesn't get broken down that way.

ukcarper

Graham_Devon wrote: »

That's exactly what you do. One of the fundamental pricing instruments for valuers is how much other properties are selling for in the local area.

So if other houses in the area are seeing their prices increase, so will the one you are buying.

Are you now saying Rightmove asking prices are a good indicator.

ukcarper

Graham_Devon wrote: »

Yer - I don't think you quite get the point here and I'm not sure how else I can explain it.

Try Bovis say the average price of the houses have sold has increased because of mix of properties namely more family homes I show you how it works so show me where I am wrong.

OffGridLiving

Graham_Devon wrote: »

Yer - I don't think you quite get the point here and I'm not sure how else I can explain it.

It would, however, quite frankly astound me if you guys didn't get the point here.

Yer, I think we all get the point. You were wrong to think that 15% rise in sales prices was a 15% rise in profits and you're now wrong to think that Bovis has raised the price of their homes 15% in 6 months (I think it was 6 months).

The point is that you just can't admit you were wrong.

Graham_Devon

ukcarper wrote: »

Are you now saying Rightmove asking prices are a good indicator.

What? Why have you thrown this into the mix?

What's it got to do with what we are talking about?

Graham_Devon

OffGridLiving wrote: »

Yer, I think we all get the point. You were wrong to think that 15% rise in sales prices was a 15% rise in profits and you're now wrong to think that Bovis has raised the price of their homes 15% in 6 months (I think it was 6 months).

The point is that you just can't admit you were wrong.

I admitted I was wrong straight away on my thread.

Good lord guys, give the nonsense and insults a break!

And having checked, prices did increase by 15% in 6 months, so I'm not even wrong.

Bovis said it completed 963 homes in the first half, with the average sales price rising by 15pc to £188,500.

ukcarper

Graham_Devon wrote: »

That's exactly what you do. One of the fundamental pricing instruments for valuers is how much other properties are selling for in the local area.

So if other houses in the area are seeing their prices increase, so will the one you are buying.

I thought that asking prices were irrelevant and all you have show is that asking price might be higher.