pslewis

I have been thinking about this for a little while now.

Why the difference?

Are people really buying property for a big discount?

Rightmove’s current average asking price for a property new to the market is £234,858.

The latest national house price survey, from Halifax, puts the average sales price in September at £159,486.

Is there a simple explaination?

RobsyUK

iTrader: (2)

Smaller crappier houses are being built to help first time buyers onto the market?

my house was £250,000 and we purchased it for £235,000 - if that helps?

pslewis

The asking price versus the actual selling price has been at this gap for about 5 years now ..... I con't figure out what's happening.

I track houses and they are not selling for the discounts needed to throw up this anomally.

I must be missing something (I am getting rather elderly now!).

chocolate_o_brian

iTrader: (22)

I wonder if its a case of many young couples wanting new build houses as opposed to the older terraced/semi's?

My poor ******* of a cousin is trapped. Knocked up his supposedly infertile Mrs when she was 18. House next, oh no the nice semi round the corner from me wasn't sufficient. A new build in a similar area was required at more expense for less land

CREWJ

I can't stand the new builds -.-

I like large rooms.

Kev_turbo

There are a lot more smaller cheaper houses sold per month hence the average selling price is lower.

10 houses at 100k each and 10 houses at 200k each for sale. Average for sale price is £150k.

Only the 10 houses at 100k sell during the month, average sale price is 100k.

stevebt

iTrader: (8)

It obvious that people are buying houses that are bigger than the average price hence why they are more expensive. Not everyone wants a little box house.

pslewis

I don't understand your reasoning ..... someone buys a £800,000 house and that doesn't pull the average asking price up nearer the average asking price?

New homes are more expensive than older homes anyway.

Surely, the actual selling price should sit around 10% less than the asking price? As an average, that is.

Kev_turbo

It is the average of all houses on the market in say september.

The listing price of the 20,000 houses put on the market in the month vs. the average selling price of the 10,000 houses sold in the same month. You are not looking at the average asking price of the houses sold in the month.

pslewis

Yes, but I have been watching it for years ..... the gap would close some months - it doesn't?

stevebt

iTrader: (8)

Its the avergae house that is priced at say £160k if people suddendly just bought £800,000 houses it wouldn't push the national average up as they are just buying more expensive houses. Your logic seems to be that if they are selling £240k houses so that must be the average? The average is the average irespective of what people are buying.

pslewis

You're saying that people are only buying £160k houses - yet the average for sale is £250k?

That would make sense ..... thing is, £250k houses are selling too.

stevebt

iTrader: (8)

The house doesn't even have to be for sale as its an average and not an average of whats on offer. If everyone suddenly put houses up for sale that are valued at £300k and over the national average is still £160k.

Boro

iTrader: (1)

Yes, in answer to your question. There is a simple answer.








































I just don't know what it is

Dingdongler

It's very simple statistical anomaly but I'm not going to tell you. Figure it out for yourself.

pslewis

You haven't a clue ..........

skoobidude

Slightly off topic but I'd never buy a new home (on a new estate) due to the required quota on Affordable Housing. You could end up in a decent 4 bed and have scumbags next door in a cheap flat claiming benefits..

Plus the roads are so narrow that you can't get two way traffic through without kerbing your alloys, it takes half an hour to get off the estate due to speed bumps, and there is only parking for one vehicle so you have to live on your own and have no visitors.

Nick

pslewis

You're right there ... new estates need a certain number of 'Social Housing' .... the builders claim they are for Nurses, Teachers, Firemen, and other public sector workers!

Which, of course, is a lie .... what they are for is for those for whom the Council Estates provided for in the past.

Now, generally, these people live by a different moral code than the rest of us ...... they should be seperated from those buying their own home and making progress in their lives.

Leslie

Think we will stick with our 150 year old cottage then!

Les

Barxy

Could not agree more, me and the Mrs are looking for our first house, we have a 9 month old daughter. People keep asking why we wont buy a new flat or anew build house on a scheme etc. The above is the reasons why!

Devildog

Yes

Asking price - vs selling price

Halifax are reporting on the average of what's actually been sold, not what's currently on the market for sale.

The avereage asking price f0r 100 houses on the market may be £250k, but if only two of the cheaper ones sell, then the average sales price will be much lower than £250k.

you are comparing apples with oranges

Devildog

I suspect he does

Seriously Pete, its not exactly rocket science

pslewis

The only explaination I have understood is that many more cheaper houses are being sold than expensive houses ...... makes sense, but that would mean that very few houses over £250k are selling at all - most staying for sale, forever.

Boro

iTrader: (1)

Oh, you have one of them new fangled thingies then?

The Trooper 1815

iTrader: (31)

Like the ****'s did with the Jews?

EddScott

£500K+ houses are selling due to the very wealthy buying or europeans trying to get rid of Euros. Cheap houses are selling well because mortgages are harder to come by to those that obviously can't afford it. With the death of interest only the average sale price will probably come down. The £250K houses will be the ones where people over-stretched themselves and trying to downsize - probably more so than those moving up the ladder, probably.

Family friend does the show home thing for houses in Oxfordshire. They are all £2m+ and she has no problem shifting them. The brochure is stunning. They even put £2K worth of wine in the wine chiller as a thankyou. Different world!



I would never buy a new home where there was social housing on or near the estate - my mother has a house in Cardiff and its private one side of the road and social the other side. The petty crime rate is very high. You can't leave anything out or they'll pinch it.

Even where I live there is an estate with lovely looking houses then one part is social and its all gypsy types with trucks, caravans and just horrible. Yet across the road is the £250K house that won't sell.

pslewis

I just don't believe that scumbags should get new houses on the social - and be housed amongst the people who are buying their own place ..... the aspirational should not have to suffer in the vicinity of the non- achieving!

BLU

iTrader: (27)

I have both, (new build and large rooms) over three floors

pslewis

I remember you telling me the story of how the builder let you lay the first stone ... which was a nice touch

The Trooper 1815

iTrader: (31)

OK then, so anyone using the "part buy scheme" as they are on a low income are segregated?

Surely this is against all the labour policies you spout!