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

Graham_Devon

ukcarper wrote: »

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

OK - but no one is talking about asking prices.

Were talking valuations. Those will, in part, be set on the sold prices of other houses in the area. Valuations also determine your mortgage and can be some way away from the asking price, so nothing to do with asking prices.

ukcarper

Graham_Devon wrote: »

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.

Have you not read any of the last posts

Graham_Devon

ukcarper wrote: »

Have you not read any of the last posts

I have, but to completely honest, I have lost the will to bother carrying on. I have no idea what half of you are trying to achieve now.

It's almost as if some have to find issue where there is no issue complicating the thread to the point of total confusion.

I really have no idea what tangent some of you are going down now, but it all seems extremely personal!

ukcarper

Graham_Devon wrote: »

OK - but no one is talking about asking prices.

You said the price of second hand homes increased because valuers take into account what other properties are selling for but the people buying them are in same position they have always been in so how can they find extra.

Graham_Devon

ukcarper wrote: »

You said the price of second hand homes increased because valuers take into account what other properties are selling for but the people buying them are in same position they have always been in so how can they find extra.

http://forums.moneysavingexpert.com/showpost.php?p=62327299&postcount=270

ukcarper

Graham_Devon wrote: »

I have, but to completely honest, I have lost the will to live. I have no idea what half of you are trying to achieve now.

It's almost as if some have to find issue where there is no issue complicating the thread to the point of total confusion.

It's very simple not complicated and I can't believe you can't see the only reason that average price has risen is because they are selling a larger percentage of family homes so I can only assume you have some other motive.

OffGridLiving

Graham_Devon wrote: »

I admitted I was wrong straight away on my thread.

Yep, you did and credit to you for doing so. Did you notice that as soon as you held your hands up, everyone dropped it?

Graham_Devon wrote: »

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.

Do you really not understand that a 4 bed detached home may have a selling price 15% higher than a 2 bed apartment? And that this doesn't mean their house prices have gone up by 15%, it just means that this year they are selling 4 bed houses instead of 2 bed apartments?

Come on Graham, step back. Think about it.

ukcarper

Graham_Devon wrote: »

http://forums.moneysavingexpert.com/showpost.php?p=62327299&postcount=270

I assume banks haven't loosened there lending criteria so if that is the case perhaps Hammish is right and it is lack of lending to suitable buyers that is holding prices down.

wotsthat

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.

Again, there might be a correlation but Graham_Devon paying £500 more for a house doesn't cause me to pay £500 more.

grizzly1911

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.

When we sold our first house it was on a development of very similar, although different properties.

The agent gave us price for that house, without seeing it to start with, which was the price it sold at.

My MIL is in the course of downsizing. The house for sale is in a close of perhaps 20 similar but different sized 4/5 bed detached houses in an area of mixed properties of similar sizes. The agents again pitched their asking prices based on a selection of recent diverse sales (rising) including a couple of new builds. Her house has sold at 96% of the asking price. The house next door is now going up for sale (practically the same size) and they are pricing and expecting to sell at the same prices we used/achieved.


The house she is buying is on a "retirement" development out of half a dozen units for sale (good demand but inevitable high turnover as glorified departure lounges) they were all priced within a band and by discussion with the various agents it was obvious what the acceptable price was likely to be. When we sought a valuation, of the chosen property, again the valuer gave an initial informal verbal figure spot on, without seeing the property.

I accept that specific sale/purchase prices will be dependant on many factors so there is no direct reason why prices need be identical. Offered similar properties, all other things being equal, there will be fairly close relationship in prices.