Which house price index should you believe?

Coventry estate agents are often asked about the state of the local property market, and an influx of enquiries are normally received straight after a house price index has been released. House price indexes illustrate whether property values have increased, decreased or stayed the same.
Which house price index should you believe?

The problem? The headlines home movers see in the press are usually a national average and not always relevant to property for sale in Coventry. What's more, the attention-grabbing price rises are usually generated in London, not the Midlands.

Did you know there are no less than eight different house price indexes published on a regular basis? Each index is compiled in a different way - some use asking prices, others use sold prices while some just survey estate agents to gauge the mood of the market. These indexes paint a picture so confusing that there are even property analysts dedicated to making sense of the figures, which more often than not, disagree with each other. Coventry estate agents agree house price indexes can be off-putting for buyers and sellers who are trying to judge the property market.

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As a leading Coventry estate agent, Allsopp & Allsopp believe that house price indexes should form a small part, if any, of a home movers' decision-making process. Every property and every purchaser is unique, making it impossible to predict if a house bought on the strength of today's market will continue to rise in value, or whether selling tomorrow will result in a quick scale.

To precisely judge a property market, you need pinpoint accuracy and extensive local knowledge - something that house prices indexes lack. Allsopp & Allsopp, as a Coventry estate agent ingrained in the local property market, can give you a precise appraisal of the town's market using historical data and current transaction trends. Here are a few of the elements we consider when evaluating the local property market:

Location - even house price indexes that work on a postcode basis will never be able to work at the granular level of an estate agent. We know the most desirable roads within a postcode and understand that even what side of the street property is on can affect its value.

State of repair - as a Coventry estate agent we're no strangers to seeing the inside of people's houses. During our valuations, we establish the finish and condition of a property. It's possible to have a beautifully extended and refurbished property sat next to an un-modernised dwelling with no double glazing or central heating. The value of the two will differ, despite being neighbouring properties.

Local demand - local events drive local demand - and it's this 'on-the-ground' information that leads the supply and demand situation in Coventry. For instance, if a school has just been awarded an 'excellent' Ofsted grading, we know there will be an influx of families looking to move to the catchment area and, therefore, a premium price on the property for sale in that area. It's these subtle nuances that house price indexes don't reflect.

If you'd like to know more about the Coventry property market, contact Allsopp & Allsopp today.

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