Why are these flats 40% up in a year?

mubeye

So I'm looking into the Bath area at buying a flat. Just an example, this one is priced 40% up in under a year since last transaction. But the land registry out today suggests an annual increase of 8% in bath Feb to Feb. This is perhaps an extreme example but in general my impressions are this is not uncommon.

http://www.rightmove.co.uk/property-for-sale/property-53562325.html

Is there something I'm missing? Are asking prices routinely 30% over selling or something?

This property's sale history

Date Sold Sold Price Price Difference
03 Jul 2015 £210,000 +29%
07 Mar 2007 £162,500 +38%
31 Oct 2002 £117,500 +25%
11 Jan 2002 £94,000 +61%
25 Feb 1999 £58,250

dc197

It looks nice inside, perhaps they have renovated it since purchase?

LEJC

Its actually an area that is out performing many others....demand is high and so its a sellers market...

I was reading at the weekend that it is now one of the least affordable places to live in comparison to the average wage

Thats Bath for you...historic and expensive....its always been expensive and the period stuff holds its value well too.

iantojones40

It's the same everywhere, latest LR info for my area shows that prices have actually fallen in the last 12 months... yet everything currently has an asking price at least 20% higher than what comparable properties were selling for a year ago.

Just about the entire market seems to be made up of deluded vendors and time wasting kite flyers.

mubeye

LEJC wrote: »

Its actually an area that is out performing many others....demand is high and so its a sellers market...

I was reading at the weekend that it is now one of the least affordable places to live in comparison to the average wage

Thats Bath for you...historic and expensive....its always been expensive and the period stuff holds its value well too.

In these kinds of tourist hotspots there are loads of short term rentals so affordability doesn't really factor too much into my calcs about Bath.

The land registry states 8% annual HPI which is below national average?

davidmcn

Even local statistics can contain lots of variation once you break it down into particular neighbourhoods and types of property (not sure how easily those numbers are obtainable for you though). Is it out of step with similar properties nearby?

dragonsoup

I live 10 miles out of Bath and prices have really shot up over the last year around here. Even out in the sticks where I am we are seeing a ripple effect.

LEJC

Rental appear quite expensive too for what you get.

Yes it's a tourist hotspot...but its also a desirable place to live hence the higher than expected asking prices....
Its not a case of property being overpriced either,the good stuff is also moving fast and for not a lot off the asking price...

Same for the period stuff in Bristol which historically was a cheaper option to Bath but with reasonable links....thats selling fast now and achieving good price.

Not all areas of Bath have period property and that makes for some cheaper alternatives....but the flat you highlight would be classed as more desirable than some...although parking may be a issue.

brodawel

iantojones40 wrote: »

It's the same everywhere, latest LR info for my area shows that prices have actually fallen in the last 12 months... yet everything currently has an asking price at least 20% higher than what comparable properties were selling for a year ago.

Just about the entire market seems to be made up of deluded vendors and time wasting kite flyers.

This is exactly what it's like here in North Wales. Massive difference between LR sold data and new instructions. Even a fair offer is flatly rejected. Hopefully by late August they'll be more realistic because I don't know what else to do but wait it out in rented.

AdrianC

mubeye wrote: »

So I'm looking into the Bath area at buying a flat. Just an example, this one is priced 40% up in under a year since last transaction. But the land registry out today suggests an annual increase of 8% in bath Feb to Feb. This is perhaps an extreme example but in general my impressions are this is not uncommon.

http://www.rightmove.co.uk/property-for-sale/property-53562325.html

Is there something I'm missing? Are asking prices routinely 30% over selling or something?

This property's sale history

Date Sold Sold Price Price Difference
03 Jul 2015 £210,000 +29%
07 Mar 2007 £162,500 +38%
31 Oct 2002 £117,500 +25%
11 Jan 2002 £94,000 +61%
25 Feb 1999 £58,250

It really doesn't matter what it's sold for in the past. It's irrelevant to everybody except HPI-wonks and the vendor.

What matters is whether it's overpriced, today, for what it is and what else is on the market. And, if it is, it won't sell - unless some numpty blindly falls in love with it and doesn't bother looking at the rest of the market...

Since you aren't that numpty (are you?), you won't be buying it if it IS overpriced compared to the rest of the market.

LEJC

Looking on rightmove at other 1 beds in Bath wouldn't overly suggest that this one is overpriced.

Aside from the flats in very desirable locations this one sits quite comfortably amongst "the best of the rest".

Its not central...but not far from the centre,has a small bit of garden and the all important feel of an old property that has been well renovated....there are other cheaper 1 beds around but some of them dont have the same size and scope in the rooms....there are some cheaper ones which you could look at renovation to a similar standard but that's the only way you are likely to get something more affordable but that might also be at the compromise of being on a busy road or in a more artisan area or somewhere where parking is an absolute nightmare.....areas around the hospital,whilst nice can be bad for parking during the day etc etc