Debate House Prices
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Whats the crisis?

lauraocal
Posts: 73 Forumite
I have just been on the land registry web site and compared the house prices in my county and in feb 2007 the average price was £221,000 but in feb 2008 the average was £229,000.
Has the housing market decreased to make the average price go below the average price in feb 2007?
I'm really confused. I hear all this news saying the house prices have dropped but as far as I can see house prices made (for my area) 9k since feb 2007.
I can see that sales volume is down, but could alot of that be down to the hype surrounding "drops" in house prices thats constantly being reported?
I do not claim to know the first thing about index price's or and kind of indexes for that matter, but I cant help but think if the government and endless "experts" weren't constantly argueing over recessions and scaring everyone half to death then consumer confidence wouldn't be so low and this situation wouldn't be as bad.
I know prices of things like food and fuel are soaring, I have bills to pay like anyone else, but if these people didn't go around killing off any chances of consumer confidence when spending on EVERYTHING that things would even out a little bit more.
Am I just so in the dark on this one I need to go to sleep or have I got a point?
Has the housing market decreased to make the average price go below the average price in feb 2007?
I'm really confused. I hear all this news saying the house prices have dropped but as far as I can see house prices made (for my area) 9k since feb 2007.
I can see that sales volume is down, but could alot of that be down to the hype surrounding "drops" in house prices thats constantly being reported?
I do not claim to know the first thing about index price's or and kind of indexes for that matter, but I cant help but think if the government and endless "experts" weren't constantly argueing over recessions and scaring everyone half to death then consumer confidence wouldn't be so low and this situation wouldn't be as bad.
I know prices of things like food and fuel are soaring, I have bills to pay like anyone else, but if these people didn't go around killing off any chances of consumer confidence when spending on EVERYTHING that things would even out a little bit more.
Am I just so in the dark on this one I need to go to sleep or have I got a point?

Some times all you need to get along is nothing at all.

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Comments
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I have just been on the land registry web site and compared the house prices in my county and in feb 2007 the average price was £221,000 but in feb 2008 the average was £229,000.
Has the housing market decreased to make the average price go below the average price in feb 2007?
I'm really confused. I hear all this news saying the house prices have dropped but as far as I can see house prices made (for my area) 9k since feb 2007.
I can see that sales volume is down, but could alot of that be down to the hype surrounding "drops" in house prices thats constantly being reported?
I do not claim to know the first thing about index price's or and kind of indexes for that matter, but I cant help but think if the government and endless "experts" weren't constantly argueing over recessions and scaring everyone half to death then consumer confidence wouldn't be so low and this situation wouldn't be as bad.
I know prices of things like food and fuel are soaring, I have bills to pay like anyone else, but if these people didn't go around killing off any chances of consumer confidence when spending on EVERYTHING that things would even out a little bit more.
Am I just so in the dark on this one I need to go to sleep or have I got a point?
That's a cute post.
We're going through the brain wash phase at the moment.0 -
mr.broderick wrote: »That's a cute post.
We're going through the brain wash phase at the moment.0 -
Kübler-Ross stage 1. DenialIt's a health benefit ...0
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Am I just so in the dark on this one I need to go to sleep or have I got a point?
Yep.The media have been over-hyping the whole credit crunch/recession/house price crash for months.And that's before you look at the bulletin boards, home of the doomster property speculators.:eek:Trying to keep it simple...0 -
Land registry data is very laggy, often 3 to 6 months from sale to publication. Prices can be agreed and a chain put together many months before actual sale, so much of the LR data is a year old at best. Also the system has been abused by some developers who have declared sale prices without discount and deposit paid type deals reflecting the actual price paid.0
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Well going from £221,000 to £229,000 over a period of a year is an increase of a measly 4%, so you either live in an area that hasn't seen much growth recently anyway, or that prices were a fair way above £229,000 over the period of that year, and have in fact dropped down to £229,000, resulting in a year on year increase of 4% which is way below the commonly expected 8ish%. Surprised the LR is reading this low already tbh.
Has the past years worth of house price gains been wiped out by recent reported drops? Taking the whole of the UK as an average the answer is No, so you will not see prices as they were 1 year ago, yet.
But I'd be surprised if the LR is recording any falls yet anyway. As said above, to report 4% yoy now is pretty low for LR figures because the reports are way behind.0 -
thanks for the reply.
Are these increases of around 8% just the last couple of years or has this been the trend for alot of years?Some times all you need to get along is nothing at all.0 -
thanks for the reply.
Are these increases of around 8% just the last couple of years or has this been the trend for alot of years?
Pretty much since 2000. Use the land registry figures again but select single location, all England and Wales, house price index report, for date range 2000-2008 and you'll see it all there in black and white. 2000 - 2005 saw year on year rises of 10%, 15%, going right up to 20% in 2003. For example, from Jan 02 - Jan 03 the average year on year increase in house prices for England and Wales was 24%! Then there was the blip in 2005 where year on year figures dipped to 3%. The BoE slashed interest rates, which causes year on year increases to stutter up to about 9% by summer 2007, and since then its been dropping with the latest figure for the whole of England and Wales being 5% year on year (Feb 07 - Feb 08).
So you could say the average has been above 8% year on year, but most commentators call 8% per year 'sensible' increases (though even that rate is twice average wage rises over the period).
So a year on year increase in your area for Feb 07 - Feb 08 of just 4% is in fact below average for England and Wales, and is a fair drop from the 9% we were seeing up to summer last year.
But as has been said, LR figures, though reasonably official, are a fair way behind the likes of Halifax and Nationwide. Halifax for example is already recording negative year on year increases (about -1%), which means the average house sold though Halifax has dropped in value from a year ago.0 -
So if I had my house valued in april 07, for £95,000.00, just how much would it be worth today?
Have I actually started to loose any value in it yet or should I assume it to be higher, but just not with the previous growth on value?
I have a large secured loan you see and am facing getting my house repossessed due to non payment.
I only have £26k left to pay on the mortgage, so as of april last year, that left equity of £69k. The secured loan stands at £66k.
Would I be better off selling now or leaving it with the bank to sell?Some times all you need to get along is nothing at all.0 -
So if I had my house valued in april 07, for £95,000.00, just how much would it be worth today?
Have I actually started to loose any value in it yet or should I assume it to be higher, but just not with the previous growth on value?
I have a large secured loan you see and am facing getting my house repossessed due to non payment.
I only have £26k left to pay on the mortgage, so as of april last year, that left equity of £69k. The secured loan stands at £66k.
Would I be better off selling now or leaving it with the bank to sell?
What the hell did you buy with a loan of 66K secured against your house?
Anyway never mix estate agents value with worth. Its only worth what someone will pay for it.Keep the right company because life's a limited business.0
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